NEWS

Philippine casino developer Leisure Resorts & World Corp. has abandoned plans to develop $550 million integrated casino resort on the island of Boracay in partnership with Macau-based casino operator Galaxy Entertainment Group.

Leisure Resorts’ acting chairman, Eusebio Tanco, said in a recent interview that while the company would no longer pursue permission to build a casino resort on the portion of land in Boracay it has previously purchased, it would keep the property for land banking.

The official said that they will “just hold on to the piece of land” and “land bank it.” Mr. Tanco also noted that they are no longer holding talks with Galaxy over the development of a resort with a casino and hotel, among other facilities.

Boracay is one of the most tourist-heavy destinations on the territory of the Philippines. Leisure Resorts and Galaxy first announced their partnership and plan to build a resort on the island in late 2017.

In the spring of 2018, Galaxy obtained a provisional gaming license from PAGCOR, the Philippine gambling regulator. However, as Galaxy and its local partner were gearing up preparations to commence construction, Philippine President Rodrigo Duterte ordered the closure of Boracay for environmental cleanup.

The President’s order was prompted by an environmental review of the island that blasted businesses operating on Boracay for unauthorized development activity and the lack of proper sewerage system, among other issues. In comments to media, President Duterte even called the island a “cesspool.”

Boracay was closed in April 2018 for a six-month environmental clean-up. There was no tourism activity on the island during that period.

President Duterte’s Ban on Casino Resorts on Boracay
Aside from the environmental clean-up, the casino portion of Leisure Resorts and Galaxy’s project drew the ire of President Duterte, who has long been known for his negative stance on gambling-related matters.

Leisure Resorts and Galaxy’s plan aimed to redefine the standards of luxury resorts in the Philippines, designating the bulk of the total gross area of the property for premium hotels and villas as well as to amenities such as wellness centers, spas, bars and lounges, and fine dining outlets.

The casino area was planned to occupy about 7.5% of the total floor area of the property and to feature no more than 50-60 table games.

Construction of the resort was expected to kick off in 2020 and to be completed about two years later.

President Duterte said in April 2018 that there would be no new casinos on Boracay after the island’s reopening in the fall of 2018, and specifically slammed the Leisure Resorts and Galaxy project for its gaming portion.

In early 2018, President Duterte issued a five-year moratorium on approving new casinos on the territory of the country. Philippine gaming regulators have pleaded with the nation’s top official to ease the prohibition, but to no avail.

There were reports over the summer that the ban on new casinos could be lifted partially, but that has not happened so far.

As for Leisure Resorts, after dropping from the Boracay casino resort scheme, the company now plans to focus on expanding its core businesses and rationalizing itself. It operates bingo parlors across the country and holds a license from the Cagayan Economic Zone Authority to conduct Internet gaming activities. It also operates hotels and recreational facilities.

Source: Casino News Daily