Premium Leisure expresses interest in PAGCOR casinos

The SM Investments Corporation subsidiary will consider entering the bidding process if Casino Filipino is privatised.

The Philippines.- Premium Leisure Corp, a subsidiary of SM Investments Corporation (SMIC), has shown its interest in bidding for the PAGCOR’s Casino Filipino branches if the Philippine government pursues its plans to privatise the venues.

During SMIC’s annual stockholders’ meeting in Pasay, Premium Leisure Corp’s president and CEO, Armin Antonio Santos, said the company would consider joining the bidding process. He clarified that it has not been decided whether the company would bid for all 44 casinos or just some of them, or whether the bid will be in partnership with Melco Resorts and Entertainment or not.

Premium Leisure Corp, is a subsidiary of Belle Corporation and is partnered with Melco Resorts and Entertainment on City of Dreams. Santos said that the company will investigate the terms and conditions to determine its participation should PAGCOR decide to privatise. He added that SMIC’s gaming unit is also looking at new gaming projects around the country.

In March, Alejandro H. Tengco, chairman and chief executive officer of PAGCOR, said the regulator-cum-operator was “seriously considering the privatisation of all PAGCOR-operated casinos” to split its regulatory and operating functions.

PAGCOR casinos sale won’t threaten private sector, analysts say

The Philippine government’s planned sale of its state-owned casinos is unlikely to pose a competitive threat to the private sector, according to a report from Maybank Securities Inc. Analyst Miguel Sevidal has suggested that prospective buyers are likely to face high costs for upgrading the venues and integrating new technology, which may make them unattractive buys.

The analyst noted that only ten of PAGCOR’s 44 Casino Filipino venues were located within proximity to Entertainment City, home to private sector operators such as Solaire Resort and Casino, Okada Manila, City of Dreams Manila, and Newport World Resorts. 

Sevidal suggested that interest would be low unless valuations became more attractive. He also noted that Casino Filipino outlets cater primarily to the local mass market and are likely to see a limited boost from the recovery of foreign tourism in the Philippines. 

See also: Morgan Stanley analysts question PAGCOR casinos sale price