«2014 is likely to be a challenging year for PAGCOR
The Philippines’ Gambling monopoly is approaching the expected logical end. PAGCOR representatives stated that in 2014 they would surely have to pull in their belts and keep hoping for the best. This year is expected to become a challenging year for the corporation. Problems are expected from the local government.
The Philippines government agency on regulating casinos stated that in 2014 revenue from online and land-based casinos had to reach not less than P45.47 billion. Financial experts expect the local government coffers to get this very amount. This money has already found their future application. In case the country budget has a deficit, gambling industry will be blamed for that. For putting this plan into effect, the government is planning to stimulate development of numerous new small land-based casinos and online ones, rendering them all the reasonable assistance.
PAGCOR board of directors is up to keeping profit growth rates this year. A stumbling block for this plan implementation may become a government’s idea for receiving high profit from this industry.Cristino Nagulat, PAGCOR Chief Executive and Chairman, is hopeful of keeping good performance of PAGCOR in 2014. Staying realistic, he understands that it definitely will not be easy to put their plans into effect. But his corporation is used to working at its best, but the competition is getting stiffer. Nagulat keeps repeating to his employees they must do their best to reap the fruits of their labor. Willing to show the importance of reforms, the government provided the following data.
The year of 2013 was marked by earnings decline from the local gambling industry. Planning to get P42.9 billiion the country just received P40.52 billion, that was 5.5% less than expected. It was only Manila Solaire Resort’s achievement in a greater degree. By the end of the current year some new land-based casinos are expected to appear in Manila and some online ones as well. Many experts agree that new competitors will be able to put their hands on a good-sized piece of cake, which earlier belonged only to PAGCOR: in 2013 its revenue reached $2.5 billion.
The government is well aware that making this step it misses out on gambling monopoly. Someone has to pay this price. The Parliament will definitely have to come to terms with the possible fact that not each and every peso, earned at casinos, will return to the local government coffers. If the government plans to get more profit from the gambling industry, it will definetely have to let foreign professionals into their market.As far as PAGCOR team is concerned, many experts agree that it will be a good lesson and a useful experience for the corporation.
If they keep earning big profit in a complicated market situation, they will prove the highest professionalism of their management.