• The Financial District

2 POGOs LEAVE THE PHILIPPINES

Two Chinese online casinos catering only to their compatriots are leaving the Philippines and more are likely to follow, said Andreo Calonza in a report for Bloomberg late on June 29, 2020.


The reasons for their advanced departure are restrictions on their operations due to the COVID-19 pandemic and higher taxes, the Philippine Amusement and Gaming Corp. (Pagcor) said as Congress is looking at proposals to slap a 5% franchise tax on gross revenue or receipts derived from online casinos’ operations, and to impose a 25% income tax on foreigners working in the industry.

Pagcor is the regulatory body for all gambling operations in the country. Bloomberg reported the bit of news caused casino and property stocks to fall.

More than 5,000 employees, mostly foreign nationals, will lose their jobs after Don Tences Asian Services Solutions and SC World Development Group Ltd. asked that their licenses be canceled, said Pagcor assistant vice president Jose Tria. “There are more to come. We are doing our best to convince them to stay,” Tria said in a mobile-phone message. Bloomberry Resorts Corp. sank as much as 9%, leading declines among Philippine casino operators that provide gaming rooms for online gambling operators while Suntrust Home Developers Inc., 51% owned by Suncity Group Holdings unit Fortune Noble and which is building a casino resort in Manila, tumbled as much 7.5%. Megaworld Corp. dropped as much as 5.3%, pacing a retreat among builders of residential and office condominiums.

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@2020 by The Financial District