Gaming | Boracay casino in question after Duterte comments

Foreign tourists sunbathe at a beach on Boracay island

Philippine President Rodrigo Duterte said yesterday that he will establish Boracay as a land reform area once its six-month rehabilitation period concludes, casting doubt over what will happen to gaming licenses previously granted for the tourist island.

Speaking prior to his flight to China, where he will attend the Boao Forum, Duterte said that the land had been designated as an “agricultural area” and would be given to farmers – or as he put it – “to the Filipino first.”

The president was referring to the 2008 decision of the Supreme Court, which classified the island as both forest and agricultural land that belongs to the government. The decision means that the island cannot be privatized.

According to local media, Duterte rejected a license that was last month awarded to partners Galaxy Entertainment Group and Philippine-based AB Leisure Exponent Inc. to develop a USD500-million integrated casino-resort. The president claimed to be unaware of such a concession and said, according to local media, that it would not benefit the Philippine people.

“There are no plans for a casino. Let’s stop it because it’s too much. There’s a casino here, casino there,” he said according to several sources. “Why would I give you a casino there? What will the Filipinos get out of it?”

Late last month, Galaxy Entertainment Group confirmed that its wholly-owned subsidiary been granted a provisional gaming license by the Philippine Amusement and Gaming Corporation (PAGCOR). Just several months earlier, Galaxy’s vice chairman Francis Lui reportedly met with the Philippine president to discuss gaming opportunities.

But the meeting aside, Duterte has taken a resolute stance on gambling activities in the archipelago nation since his 2016 election victory. Within his first six months in office, the former Davao City mayor ordered the closure of all online gaming activities.

In February 2018, he imposed a moratorium on new casinos in the Philippines – which only applied to would-be developers who had not yet submitted their application for a license – and directed PAGCOR to unload its government-owned casinos and become an industry regulator only.

Yesterday’s announcement on Boracay comes just a few days after Duterte approved the closure of the tourist destination for up to six months after saying the waters off its famed white-sand beaches had become a “cesspool” due to overcrowding and development.

More than 2 million tourists visited Boracay last year, generating about 56 billion pesos (USD1 billion) in revenue. But the influx of tourists, neglected infrastructure and growth of resort establishments have threatened to turn Boracay into a “dead island” in less than a decade, according to a Philippine government study.

The shutdown will take effect from April 26. DB