Philippines gaming regulator PAGCOR says it cannot close the Manila Bay branch of its Casino Filipino operations due to contractual obligations while rejecting claims by the Philippines’ Commission on Audit (COA) that the casino has lost Php2.11 billion over the past five years.
The strong reaction follows last week’s release by the COA of a report suggesting PAGCOR should consider closing the branch as a result of mounting losses, rising from Php352 million in 2014 to Php458 million in 2015, Php386 million in 2016, Php413 million in 2017 and a record Php502 million in 2018.
“The existence of adverse financial conditions for five consecutive years of the CF-Manila Bay casts doubt on its ability to operate as a going concern,” the COA said.
In a strongly worded statement sent to media on Tuesday afternoon, PAGCOR revealed it is unable to cease operations at Manila Bay due to an existing contract entered into by the previous PAGCOR management with Vanderwood Management Corporation, adding it would instead focus on strengthening the branch’s revenue generation capacity.
More importantly, PAGCOR rejected the COA’s calculations of its Manila Bay branch losses, claiming they include revenue deficits accrued by CF Pavilion, “a branch independent of Casino Filipino Manila Bay” which ceased operations in March 2018.
Instead, it said that Manila Bay had registered increasing GGR since it opened 23 months ago from a monthly average of Php4.22 million in 2017 to Php13.38 million in 2018, and had only registered negative figures after deducting mandated contributions and corporate social responsibility financial assistance.
“While it is true that the local gaming landscape is becoming increasingly competitive due to the opening of integrated resorts in Metro Manila, among other factors, we deem it necessary for COA to consider CF Manila Bay’s steady contributions to PAGCOR’s mandated beneficiaries as part of the branch’s profits and contributions to nation building and not as losses,” PAGCOR said.
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