History Of Gambling In The Philippines

The Role of Colonialism, Gambling, Religion, and Resistance in Shaping the Philippine Third Sector1 Alice B. Acejas, PhD2 Any ahistorical, non-political reading of Philippine civil society, and there are some, presents only half the story. Commentators have written about the emergence of Philippine. Philippines - Philippines - Local government: Before the arrival of the Spanish in the 16th century, most people lived in small independent villages called barangays, each ruled by a local paramount ruler called a datu. The Spanish later founded many small towns, which they called poblaciones, and from those centres roads or trails were built in four to six directions, like the spokes of a wheel.

Op-ed by Bob Shead

In the first part of this two-part article on the Philippine Gaming Industry, I will focus on the country’s casino industry. Together with the online gaming sector, which will be the focus of the second part of this article, the casino industry is of enormous importance to the Philippine economy, and is intricately linked to the country’s tourism industry. In this article, I will also identify possible investment opportunities in this rather complicated and sensitive industry.

The Philippine Amusement and Gaming Corporation (PAGCOR) is the Philippine Government body, founded in 1976, that has the responsibility for governing the casino industry. PAGCOR is 100% owned by the Philippine government, and is a controlled corporation under the Office of the President of the Republic of the Philippines. The funds generated by PAGCOR augment the government’s budget for infrastructure and socio-civic projects.

Under its Charter, PAGCOR has a three pronged mandate:

1. Regulate, operate, authorize and license games of chance, games of cards and games of numbers, particularly casino gaming in the Philippines;
2. Generate revenues for the Philippine Government’s socio-civic and national development programs;
3. Help promote the Philippine tourism industry.

In June 20017, the following amendments were added to the PAGCOR Charter:

1. Allowed to enter into agreements, including joint ventures, with any person, firm, association or corporation;
2. Have a requirement to obtain consent of the local government authority, that has territorial jurisdiction over the area chosen as a site for any of PAGCOR’s operations;
3. Delimitation of regulatory authority and power over gaming activities covered by other existing franchises, regulatory bodies or special laws.

PAGCOR operates 13 casinos across the country, all located in in popular tourist destination areas:

METRO MANILA – Casino Filipino Midas, Casino Filipino Malate, Casino Filipino Pavilion.

LUZON – Casino Filipino Angeles, Casino Filipino Ilocos Norte, Casino Filipino Mimosa, Casino Filipino Olongapo, Casino Filipino Tagaytay.

VISAYAS & MINDANAO – Casino Filipino Bacolod, Casino Filipino Cebu, Casino Filipino Davao, Casino Filipino Iloilo, Casino Filipino Mactan.

However in 2008, the government of the day decided to open up the Philippine gambling market to international bidders, essentially removing PAGCOR’s monopoly of running its own casinos. PAGCOR still retains its Philippine government authority in regulating all casinos in the Philippines. This decision meant that the Philippines began to compete head to head with established gaming sites in Macau, Malaysia and Singapore, as well as Las Vegas and Australia. This led to a rapid rise of integrated casino/entertainment resorts in and around Manila, and has now resulted in the rapid development of areas such as Newport City, adjacent to Manila International Airport (NAIA), and the sprawling Entertainment City complex, which is part of reclaimed land in Manila Bay.

This decision, made in 2008, has been highly profitable to the Philippine Economy. For example, in the first nine months of 2016, the Philippine gaming industry was worth Peso118 billion (US$2.3 billion), in terms of Gross Gaming Revenue (GGR). In comparison, the GGR in 2012 was Peso56 billion (US$1.09 billion). The casino/entertainment complexes in Entertainment City have been, and will continue to be the main money makers and tourist draws for the foreseeable future. The investment bank, Credit Suisse has projected that the country’s gambling industry can earn gaming revenues of US$6 billion by 2018. This potentially will promote the Philippines into the top four gaming countries globally.

There are about 18 privately owned casinos currently operating in the Philippines, most are in Metro Manila. However Clark Airport (part of Angeles City) also hosts the following casinos – Fontana Resort, Royce Casino, Widus Resort and Midori Casino. Thunderbird Resorts Philippines also has two operations in North Luzon. However, casinos outside of Manila, account for only 327 gaming tables, or less than 18% of the 1,845 total as of September 2016. PAGCOR operated casinos have a combined 565 gaming tables, or equivalent to 31%. The vast majority of gaming tables are focused at Entertainment City, Manila.

The combined total investment costs in the Entertainment City gaming complex is estimated to be at least US$1 billion on facilities and are also required to follow a certain ratio of gaming tables to hotel rooms. These facilities and resorts then additionally attract not only gamblers but also high end tourists and business visitors who chose 5 star hotel accommodation with the related luxury lifestyle. These Manila based gaming establishments are also located close to Manila International Airport (NAIA) for ease of access, and avoiding the serious existing traffic issues.

Currently, there are four operational and integrated casino/entertainment complexes in Manila, of which three are in Entertainment City, and one in Newport City. The first one, with a four year head start, is Resorts World Manila, which is in Newport City. Resorts World Manila is located opposite Terminal 3 of Manila International Airport.

Filipinos and foreigners had the first taste of the four promised Las Vegas- or Macau-styled glitzy casinos in Entertainment City when Solaire Resort & Casino was launched. It is operated by Bloomberry Resorts Corporation.

Almost a year after, City of Dreams also opened to the public. The second mega casino in the Entertainment City gaming strip is operated by Melco Resorts & Entertainment Limited in collaboration with the Philippines’ Belle Corporation. Melco Crown is a major Macau casino-resort operator.

The most recently opened Casino is Okada Manila, which, like Solaire, is next to the bay, offering its guests a view of the iconic Manila Bay sunset. In March this year, it unveiled a major attraction – the world’s biggest multicolour dancing fountain. It is operated by Tiger Resort Leisure and Entertainment Incorporated.

The fifth casino resort in Manila (and the last of the four in Entertainment City complex) is the Resorts World Bayshore. It is due to open in 2020. It will be the second integrated resort in Manila of Travellers International, which also operates Resorts World.

According to Fitch Ratings, the initial results of the first 3 casinos (Resorts World Manila, City of Dreams, and Solaire) are encouraging, relative to the size of the initial investment. But with increased competition in the industry, earlier developments have taken a hit. Various economic reports have said that the greater Manila market is showing signs of maturation with Resorts World Manila, the first privately-owned resort, currently showing a decline, due to the opening and operations of the newer resorts. However, it is expected that, driven by the opening of the US$2.4 billion Okada Manila Resort, a higher gross gaming revenue is forecast for 2017, along with the continued economic growth in the Philippines. Additionally, Credit Suisse has reported a decline in market share of gross gaming revenues from Resorts World Manila from 50% in 2012 to 19% by the end of this year. However, Credit Suisse have also predicted that Solaire Resorts will dominate the casino market share with 36% in 2017.

Latest data from PAGCOR showed junket-sourced VIP business makes up a third of the private casinos’ gross gaming revenue. VIP gamblers are foreign nationals flown into the Philippines by independent entrepreneurs or junket operators, who arrange credit lines and luxury accommodation for their clients. These gamblers don’t play along with the general and mass market clients, but are ushered into special rooms reserved for them. Growth in the VIP segments has also increased due to proxy betting (illegal in Macau and other casino cities). Proxy betting is a platform by which a person outside the casino gives betting instructions to an agent inside. The VIP junket sector is currently dominated by Korean visitors, as far as overseas visitors are concerned.

However, for the Philippine Government owned PAGCOR casinos, Electronic Gaming Machines (EGMs) or the slot machine market segment makes up the bulk of their gross gaming revenue. PAGCOR data records that nearly 6 out of every 10 EGMs nationwide are owned by the gaming regulator. PAGCOR operated 565 gaming tables, and 10,271 EGMs at Casino Filipino venues, as of the end of September 2016. In the first nine months of 2016, PAGCOR operated casinos recorded gross gaming revenue of Peso23.88 billion (US$ 467,703,000), although this was much lower than the licensed private casinos revenue of Peso79.89 billion (US$1.54 billion).

The Philippine Government has said that it will sell PAGCOR owned casinos to private bidders in the near future, as these can no longer compete with the licensed private casinos. As mentioned earlier, PAGCOR operates 11 casinos nationwide, two of which are in Metro Manila. Currently, under PAGCOR’s charter and national law, 5% of PAGCOR’s winnings is paid to the Bureau of Internal Revenue as franchise tax, while 50% of the remaining 95% is paid to the Philippine Treasury. Currently, other beneficiaries of PAGCOR’s revenue, include the Philippine Sports Commission, the Philippine Board of Claims, Philippine cities that host PAGCOR casinos, as well as the Office of the President’s Project for Social Funds.

Conclusion

Despite the catastrophic fire at Resorts World Manila earlier this year that caused 39 deaths, the casino industry is predicted to rise with the added investments in new casino resorts, and the improvements to airports, infrastructure etc, especially in the new skyway access roads that lead into the Manila Entertainment Complex on Manila Bay. Additionally, the fact that PAGCOR is preparing for the sale of its existing Philippine Government owned casinos, does present a good opportunity for international companies with an interest in this industry. As mentioned earlier, it has been predicted that casino revenues will increase to US$6 billion in 2018, making the Philippines the fourth biggest gaming center in the world.

Editor’s Note: We had erroneously mentioned in an earlier version of this article that the catastrophic fire had occurred at Solaire Resort & Casino. We deeply regret and sincerely apologize to our readers and the Solaire Resort & Casino management for this inadvertent error.

Dezan Shira & Associates Brochure
Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.

An Introduction to Doing Business in ASEAN 2017
An Introduction to Doing Business in ASEAN 2017 introduces the fundamentals of investing in the 10-nation ASEAN bloc, concentrating on economics, trade, corporate establishment, and taxation. We also include the latest development news for each country, with the intent to provide an executive assessment of the varying component parts of ASEAN, assessing each member state and providing the most up-to-date economic and demographic data on each.

In this issue of ASEAN Briefing magazine, we provide an introduction to the Philippines as well as analyze the various market entry options available for investors interested in expanding to the island nation. We also discuss the step-by-step process for setting up a business entity in the Philippines, highlighting the various statutory requirements for overseas investors. Finally, we explore the potential for Singapore to serve as a viable base to administer investors’ Philippine operations.

Previous Article
« India-Myanmar Relations: Growing Multifaceted Bilateral Ties

Next Article
The Guide to Employment Permits for Foreign Workers in Laos »

• Land
• People
• Economy
• Government and society
• Cultural life
• History
  • The Marcos and early post-Marcos era

Before the arrival of the Spanish in the 16th century, most people lived in small independent villages called barangays, each ruled by a local paramount ruler called a datu. The Spanish later founded many small towns, which they called poblaciones, and from those centres roads or trails were built in four to six directions, like the spokes of a wheel. Along the roadsides arose numerous new villages, designated barrios under the Spanish, that were further subdivided into smaller neighbourhood units called sitios.

Elements of both Spanish and indigenous local settlement structures have persisted into the early 21st century. The country is divided administratively into several dozen provinces, which are grouped into a number of larger regions. The National Capital Region (Metro Manila) has special status, as does the Autonomous Region in Muslim Mindanao in the far south. Each province is headed by an elected governor. The provinces collectively embrace more than 100 cities and some 1,500 municipalities. The poblaciones are now the central business and administrative districts of larger municipalities. Although contemporary rural and urban settlement revolves around the poblaciones, the population is typically concentrated in the surrounding barangays, reinstated during the Marcos regime as the basic units of government (replacing the barrios). The barangays, which number in the tens of thousands, consist of communities of fewer than 1,000 residents that fall within the boundaries of a larger municipality or city. Cities, municipalities, and barangays all have elected officials.

Justice

The constitution of 1987, which reestablished the independence of the judiciary after the Marcos regime, provides for a Supreme Court with a chief justice and 14 associate justices. Supreme Court justices are appointed by the president from a list submitted by the Judicial and Bar Council and serve until they reach the age of 70. Lower courts include the Court of Appeals; regional, metropolitan, and municipal trial courts; and special courts, including the Court of Tax Appeals, Shariʿa (Sharīʿah) district and circuit courts of Islamic law, and the Sandiganbayan, a court for trying cases of corruption. Because justices and judges enjoy fixed tenure and moderate compensation, the judiciary has generally been less criticized than other branches of the government. However, the system remains challenged by lack of fiscal autonomy and an extremely low budget that long has amounted to just a tiny fraction of total government spending.

In order to reduce the load of the lower courts, local committees of citizens called Pacification Committees (Lupon Tagapamayapa) have been organized to effect extrajudicial settlement of minor cases between barangay residents. In each lupon (committee) there is a Conciliation Body (Pangkat Tagapagkasundo), the main function of which is to bring opposing parties together and effect amicable settlement of differences. The committee cannot impose punishment, but otherwise its decisions are binding.

History Of Gambling In The Philippines Pesos

Political process

Partisan political activity was vigorous until 1972, when martial law restrictions under Marcos all but eliminated partisan politics. Where the principal rivals had been the Nacionalista and Liberal parties, Marcos’s New Society Movement (Kilusan Bagong Lipunan; KBL), an organization created from elements of the Nacionalista Party and other supporters, emerged as predominant. Organized political opposition was revived for legislative elections held in 1978, and, since the downfall of Marcos, partisan politics has returned to its pre-1972 level, with a large number of political parties emerging.

The Filipino political scene is marked by parties constantly forming, re-forming, merging, and splintering into factions. Among the most prominent parties in the early decades of the 21st century were the Liberal Party and the Lakas Kampi Christian Muslim Democrats, the latter coming into being after the merger—completed in 2009—between the National Union of Christian Democrats (known as Lakas) and the Alliance of Free Filipinos (known as Kampi). Other parties included the Nacionalista Party, the Nationalist People’s Coalition, and the Force of the Filipino Masses (Pwersa ng Masang Pilipino; PMP). Many smaller parties are splinters from the larger organizations or are associated with particular regional interests. In addition, political victories are often achieved through party coalition, such as the United National Alliance, a coalition between the PMP and the Filipino Democratic Party–Laban that elected boxer Manny Pacquiao to the lower house in 2013.

Certain armed political organizations also operate within the country. The two main ones are the Moro National Liberation Front (MNLF), a Muslim separatist group that officially accepted Mindanao’s status as an autonomous region in the late 20th century but, in so doing, spawned splinter groups that remain committed to achieving a separate Islamic state; and the Moro Islamic Liberation Front (MILF), which split from the MNLF in the late 1970s and more aggressively sought an independent Islamic state for Muslim Filipinos (Moros). In 2012 Pres. Benigno S. Aquino III and the MILF concluded a framework agreement to establish an autonomous Islamic region on the southern island of Mindanao, but breakaway factions within the MILF rejected the deal. Other groups included the Abu Sayyaf Group (ASG), a local fundamentalist Muslim organization that gained notoriety though its kidnap-for-ransom activities and alleged links with international terrorism, and the National Democratic Front (NDF), a communist-led insurgency movement.

The Philippines has universal suffrage for citizens who are at least 18 years old and have lived in the country for at least one year. Suffrage was granted to women in 1937. Since that time women have become prominent leaders at all levels of government, including the presidency.

Security

The Department of National Defense is divided into three services: the army, the navy, and the air force. The army is the largest division. Service in the military is voluntary and is open to both men and women. The commander in chief of the armed forces (the president of the Philippines) is a civilian.

The armed forces are responsible for external defense. However, they also work with the Philippine National Police (PNP) to contain the antigovernment military actions of the NDF, the MILF, the MNLF, and other domestic militant organizations. Both the military and the police participate in international peacekeeping efforts of the United Nations; Philippine forces have been deployed in such a capacity to Afghanistan, East Timor (Timor-Leste), Sudan, and other sites of conflict. The armed forces additionally engage in nonmilitary activities, such as providing disaster relief, constructing roads and bridges, and participating in literacy campaigns.

Under a series of agreements reached in 1947, shortly after Philippine independence, the United States continued to maintain several bases in the Philippines and to provide the Philippines with military equipment and training. Revision of the agreements in 1978 recognized Philippine sovereignty over the bases. All installations subsequently raised the Philippine flag and were placed under Filipino command.

When the revised treaties expired in 1991, the U.S. military presence on the bases ended. However, the two countries remained military allies, carrying out joint military exercises and engaging in mutual military assistance. Following the September 11 terrorist attacks against the United States in 2001, the Philippines joined the U.S.-led global coalition against terrorism. In so doing, the Philippines aimed to upgrade the effectiveness of its armed forces in combating terrorist activity, not only in the international arena but also within its own borders. In 2014 the two countries signed a new 10-year agreement that gave the U.S. military access to several of the bases.

The PNP falls under the supervision of the Department of the Interior and Local Government and is organized into regional and provincial commands. There are also numerous private armies organized by landowners and local politicians. Unsuccessful attempts have been made by various administrations to disband these civilian forces.

Health and welfare

Health and welfare are the responsibilities of the Department of Health (DOH) and the Department of Social Welfare and Development (DSWD). The DOH maintains general, specialized, and research hospitals in urban centres throughout the country. There are also government-operated regional health centres and rural units, as well as private hospitals. Incorporated into the DSWD are several government agencies that address the needs of children, youths, women, families, and people with disabilities. A number of nongovernmental organizations and private social welfare agencies also cooperate with the department.

The rate of mortality in the early 21st century was considerably lower than it had been a few decades earlier in the latter part of the 20th century, particularly among infants, children under the age of five years, and mothers. There was also a generally steady increase in average life expectancy. The improvement in health is credited to better prenatal care and the services of more trained midwives, doctors, and nurses; improved housing, sanitation, and social security benefits; the provision of health services to government employees; the increasing number of medical and nursing school graduates; and the requirement that a medical graduate render rural service. Nonetheless, the demand for health care continues to outstrip available resources; a large number of trained medical professionals emigrate, particularly to the United States, and many of the poorest people still rely on the services of practitioners of traditional medicine and unlicensed midwives.

Housing

There is a serious housing shortage everywhere, although it is especially acute in Manila. In many places, people live in their own dwellings, but the houses are often substandard and lack elementary facilities for health and sanitation. To help meet this problem, the government has relocated thousands of “informal settlers” (i.e., squatters) in Manila to resettlement areas in nearby provinces. Assorted housing plans also have been instituted by various administrations since the Marcos era. Such projects generally consisted of model communities that provided residents with hygienic dwellings, a number of amenities, and facilities for raising livestock and for pursuing cottage industries and other means of making a living. Other important programs have included converting vacant government lands into housing sites for low-income individuals, as well as providing mortgage programs that allow needy families to acquire tracts of land for housing construction and improvement through membership in a specific development community.

Education

The Department of Education ensures that all school-age children and youths receive a basic high-quality education that will allow them to function as productive, socially responsible citizens. Elementary education in the Philippines is compulsory; it starts at age five and lasts for seven years (one year of kindergarten and six years of primary education). Secondary education begins at age 12 and lasts for an additional six years; undergraduate college instruction typically is four years. Vocational schools offer specialized training for one to three years, some in collaboration with the Technical Education and Skills Development Authority, an organization formed through the merger of several government agencies in the mid-1990s. The Bureau of Alternative Learning System offers opportunities to attain a basic education outside of the formal school system.

There are dozens of state-run universities and colleges, a large portion of them in Metro Manila, as well as a number of private institutions. The University of Santo Tomas, the oldest university in the Philippines, was founded in 1611. Other prominent tertiary institutions include the University of the Philippines (1908), which has numerous campuses and is the only national university in the country; the Polytechnic University of the Philippines (1904), another public institution, with its main campus in Manila and numerous affiliated campuses on Luzon; and the Philippine Women’s University (1932), a private institution (coeducational since the late 20th century) that has campuses in Manila, Quezon City, and Davao. Many technical institutions and community colleges serve the provinces.

Gambling History Usa

Pilipino (Filipino) is the medium of instruction in all elementary-school subjects except science, mathematics, and the English language, which are taught in English. The medium of instruction at the secondary and tertiary levels typically is English. A chronic shortage of supplies and facilities was partially remedied by a textbook program begun in the mid-1970s and by the large-scale manufacture of prefabricated classrooms.