Philippines gambling revenue could double in two years: Lawrence Ho
Mogul says Manila could challenge Singapore, but urges government backing over tax issue
Macau casino mogul Lawrence Ho Yau-lung says gambling revenue in the Philippines "could easily" double to US$4 billion in two years, setting the stage to challenge Singapore as Asia's second-biggest gaming hub.
In April, the tax bureau ordered all casino operators to pay income tax on their gaming earnings, removing an exemption given to four operators developing casinos in Manila.
The Philippines was "within striking distance" of overtaking Singapore's gaming market, said the 36-year-old son of Macau gambling tycoon Stanley Ho. "A lot of it would depend on how regulators and government support this industry."
The Philippine gaming market was now worth US$2 billion, a third of Singapore's US$6 billion, Ho said. Gaming revenue in Macau was US$38 billion last year.
The tax bureau wants to impose a 15 per cent income tax on Philippine Amusement & Gaming Corp, the state regulator known as Pagcor, and its licensees on top of a 5 per cent franchise tax.
Philip Tulk, a Hong Kong-based analyst at Standard Chartered Bank, said: "It's obviously unsettling for shareholders when there's a tax issue hanging.