In a significant development within the Philippine gaming industry, the Philippine Amusement and Gaming Corporation (PAGCOR) is set to lay off 665 workers from its casino located at Malate’s New Coast Hotel Manila. This move comes as part of the transition of control to the hotel’s owner, the Hong Kong-listed International Entertainment Corp (IEC), scheduled for next month.
Background:
The affected employees were notified of the impending layoffs during a town hall meeting in December, led by PAGCOR Chairman and CEO Alejandro Tengco. Some of the workers have already received severance pay, but uncertainty looms over whether they will find future employment directly with IEC.
IEC’s Role and Expansion Plans:
IEC, having signed a new Provisional License agreement with PAGCOR in September, is poised to take over the casino at New Coast Hotel Manila. The company, listed in Hong Kong, is not only assuming control of the existing casino but is also planning a substantial investment of up to US$1.2 billion to develop a new integrated resort with casino gaming in Manila. This move follows years of co-management with PAGCOR, indicating IEC’s strategic efforts to gain expertise in casino operations.
In a recent development, IEC announced an agreement with Malaysian gaming equipment distributor RGB to acquire 382 slot machines for use at its New Coast Hotel casino, further underscoring its commitment to enhancing gaming offerings.
Concerns and Admission by PAGCOR:
The layoffs at New Coast Hotel Manila have triggered concerns about the fate of more PAGCOR employees in the future, especially as the regulatory body gears up to privatize its 43 casinos over the next few years. Chairman and CEO Alejandro Tengco acknowledged that job disruptions would occur, primarily as a measure to address conflict-of-interest concerns when PAGCOR transitions from being both an operator and regulator to solely a regulatory body.
Industry Landscape and Record Revenues:
Amidst these changes, PAGCOR is concluding a record-breaking year, with the Philippine gaming industry reaching an all-time high in gaming revenues, totaling US$5.1 billion in 2023. This remarkable performance underscores the industry’s resilience and attractiveness despite the ongoing challenges.
Looking Ahead:
As the gaming landscape in the Philippines undergoes transformation, attention will be closely focused on the impact of the layoffs at New Coast Hotel Manila and the broader implications of PAGCOR’s privatization strategy. The industry’s ability to adapt to these changes, coupled with the continued growth in gaming revenues, will shape its trajectory in the coming years.
The gaming industry in the Philippines is undergoing a significant shakeup with the imminent layoffs at New Coast Hotel Manila and PAGCOR’s broader strategy of privatization. While concerns persist regarding the fate of displaced workers, the industry’s record-breaking revenues in 2023 highlight its resilience. The transition of control to IEC, coupled with their ambitious expansion plans, adds a layer of anticipation to the future of gaming in Manila. As the industry navigates these changes, stakeholders will be closely monitoring how PAGCOR’s strategic shift and the subsequent developments unfold in this dynamic and evolving landscape.