October 09, 2014

PAGCOR may penalize Tiger Resorts for delayed opening

State-owned gaming regulator Philippine Amusement and Gaming Corp (PAGCOR) is reportedly mulling a possible forfeiture of the P100m bond posted by Tiger Resort Leisure and Entertainment if the latter fails to open its gaming facility as planned in March 2015. The PAGCOR is also looking at other additional penalties relating to the unfulfilled commitment.

Tiger Resort has reportedly said that it was eyeing to commence operations by end-2015 at the earliest. However, in subsequent statements to the press, the company said it is planning to open the first phase of the 48-hectare integrated resort facility at PAGCOR’s Entertainment by 2016 yet. Also, Tiger Resort has yet to look for a local partner to address the issue on foreign land ownership.

Our take: The uncertainties regarding the opening of Tiger Resort’s facility given the construction delay and the foreign land ownership issue should only provide additional opportunities and further advantages to Bloomberry Resorts Corp’s Solaire and Melco Crown Phils’s (MCP) City of Dreams (which is set for opening in the next few weeks). The delay should lessen competition and enable these two facilities to ramp up operations and gain deeper market traction. – WealthSec