The Philippines is set to become one of the world’s largest gambling centers, vying with Macau, Singapore and Las Vegas for Asian high rollers. But the country’s casinos are also grappling with a spate of social costs — including kidnapping and trafficking — amid growing concern over how they’re attracting people from other countries to work there. “It’s a big problem,” said Michael French, chief operating officer of the new Solaire Resort and Casino, which opens this weekend.
The casino’s employees are mostly Chinese, many of them recruited by a network of recruiters in Hong Kong and China that operate online casinos known as Philippine Offshore Gaming Operators, or POGOs. They have mushroomed in the past two decades because of the Philippines’ liberal gambling laws and a massive customer base in China, where online casinos are illegal. The industry has brought in significant economic benefits to the Philippine economy, with more than 300,000 workers employed by POGOs last year alone. But they’re also linked to a host of crimes, from human trafficking and child pornography to money laundering and even murders.
Some lawmakers have introduced bills to ban POGOs, which are often run by offshore firms that don’t pay taxes or adhere to local regulations. Others have sought to tighten up the industry, requiring companies to pay licensing and other regulatory fees, impose minimum wages, and set aside funds for worker welfare. But the industry has a powerful ally in the Philippines’ president, Rodrigo Duterte, who has embraced POGOs and slashed taxes for the industry.
Despite the challenges, the industry is on track to double its gross gaming revenue, or GGR, by 2028, as it continues to attract foreign and local investors to build billion-dollar integrated casino-resorts in Manila and elsewhere. That could propel the country to the top five in worldwide GGR rankings, edging out Macau, Japan and Australia, which have been leading the way for the past decade.
The GGR figures exclude the profits from the sale of gaming chips and other products that aren’t taxable, and they don’t include the winnings of players who use credit cards to fund their games. They do, however, reflect the soaring popularity of baccarat, a card game that’s popular in the Philippines.
Newport World Resorts’ shuttle service connects tourists to the casino from key points in Metro Manila. The company is looking to expand its fleet and improve its services.
When starting a casino transportation services business, it’s a good idea to learn from entrepreneurs who have already built successful businesses. The right mentor can help you avoid costly mistakes and accelerate your growth rate. But it can be difficult to find an established entrepreneur willing to share their startup secrets. Fortunately, owners of a similar business outside your community may be more inclined to give you advice because they don’t compete with you. They’re also more likely to give you tips on how to grow your business. You can also read books and articles on the subject to get an edge over your competition.