A Hong Kong Company Is Investing P68 Billion on a New Integrated Resort-Casino in Manila

A new integrated resort and casino is set to rise in Manila after a Hong Kong based company announced it would invest up to $1.2 billion (about P68 billion) in the project. 

International Entertainment Corporation, which is listed in the Hong Kong stock exchange, said it has signed a new Provisional License Agreement with the Philippine Amusements and Gaming Corporation (PAGCOR) for a new casino resort, multiple gaming news platforms (including Inside Asian Gaming and GGRAsia) reported on Thursday (September 28).

IEC, which currently co-manages the casino at the New Coast Hotel in Manila, had already been granted a provisional casino license in 2020, although the newly issued license sets out the terms of the deal for the first time.

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In a disclosure posted on its website, IEC said it will transfer $100 million (about P5.7 billion) to PAGCOR in an escrow account as deposit as well as another P100 million as performance bond, which seeks to guarantee the completion of the project. The bond will be forfeited “in case of delay in the construction or development which delay exceeds 50 percent of the schedule in the Implementation Plan for each of the key components of the relevant phase.”

IEC said it has already submitted the master development plan to PAGCOR for approval. It involves the development of the integrated resort with a total gross floor area of at least 250,000 square meters, a five-star luxury hotel with 800 rooms, casino, restaurants, leisure facilities and shopping arcades. There was no mention in the plan of the exact location of the new casino resort project except that it is within the “City of Manila.”

“With most of the COVID-19 restrictions now lifted, there were approximately 1.3 million international tourist arrivals in the Philippines in the first quarter of 2023,” IEC said in the filing. “The Philippines Department of Tourism revealed it is aiming to attract 5 million foreign visitors in 2023. The Directors considered that the influx of tourists to the Philippines will boost the economy therein and benefits to the gaming and entertainment industry.

“The Directors consider that the grant of the Provisional License will provide an opportunity for the Group to participate in the gaming and entertainment in addition to the Existing Hotel and hospitality markets in the Philippines and will enhance future earning capability and potential of the Group,” it added. “The grant of the Provisional License will be a milestone development of the Group which denotes that the Group is able to operate and manage casino business and gambling activities independently.”

The four biggest integrated resort casinos currently operating in Metro Manila include Bloomberry Resorts’ Solaire Resort and Casino of businessman Enrique Razon; City of Dreams of Melco Resorts and Entertainment, which is owned by several companies that include Melco Resorts Leisure Corporation, SM Investments Corporation, Belle Corporation, and Premium Leisure Amusement, Inc.; Okada Manila of Tiger Resort Leisure and Entertainment Inc.; and Newport World Resorts of billionaire Andrew Tan.