The Philippine Amusement and Gaming Corporation (PAGCOR) has introduced a new casino guide to assess fitness and undertake propriety assessments on junket operators.
PAGCOR has introduced its new guide to strengthen anti-money laundering (AML) and counter-terrorism financing (CTF) efforts in the gaming industry.
Guidelines are to be used by a casino operator to judge the suitability of any junket or chipwashing operator under casino control.
Per the new regulatory order, all persons responsible for operating junkets must pass stringent “fit and proper persons” tests. PAGCOR’s guide will set the criteria for a legally run operation through its Fit and Proper Framework.
The Philippines’ regulatory body has reinforced its regulatory power to decline any application for junket operations or refuse to approve persons for key staff roles if they are deemed unfit to hold such a position.
The following assessment criteria will assess the suitability of junket operators. Junkets must have a good reputation, honesty and integrity, competence, capability and financial soundness.
Junkets should complete a questionnaire that includes information about officials’ professional background, alongside two forms of identification and proof of a Gaming Employment Licence to prove suitability.
Southeast Asian junkets have, in recent years, not only faced financial damage from the impact of Covid-19 but have suffered reputationally too, following the arrest of junket CEOs Chan Weng Lin and the arrest and subsequent indictment of Alvin Chau.
Cambodian gambling industry sees poor H1 results
Figures from the Ministry of Economy and Finance’s Commercial Gambling Committee of Cambodia (CGCC) have revealed disappointing state revenue from commercial gambling, despite a government push towards recommencing tourism and related economic activity.
“The commercial gambling sector depends on [tourism], especially in border areas with Thailand and Vietnam that have only just recently opened. Commercial gambling operations have just resumed, leading to slow revenue collection” Ros Phearun, Financial Industry Ministry Deputy Director, Cambodia
According to data obtained by The Phnom Penh Post, only 20 of over 200 casinos licensed on or after 2021 were in operation as of 30 June, resulting in a state revenue collection of just over 8% of the total required by budget law.
The law stipulates that KHR$174.2bn (US$43.55 million) is to be collected by the state from the Philippines' commercial gambling industry.
The poor results are due to a slow economic restart after Covid-19 and a sharp fall in tourism numbers for the region.
Speaking to the Post, Financial Industry Ministry Deputy Director Ros Phearun said: “We’ve seen that local tourists are taking trips, but international tourism remains limited. The commercial gambling sector depends on this, especially in border areas with Thailand and Vietnam that have only just recently opened. Commercial gambling operations have just resumed, leading to slow revenue collection.”
The Law on the Management of Integrated Resorts and Commercial Gambling (LMCG), established in November 2020, requires that casinos renew their licenses yearly.
Universal Entertainment delays Tiger Resort results
Universal Entertainment Corporation has confirmed that it will be delaying the publication of its Q2 2022 Tiger Resort, Leisure and Entertainment results.
Universal detailed that the former director of the company, Kazuo Okada, and a group under his instruction “usurped the facility and operation” of the Tiger Resort-operated Okada Manila IR on 31 May 2022.
As Okada and his associates continue to occupy the Okada Manila, they have failed to provide Universal with adequate information, rendering them unable to disclose preliminary results according to the usual schedule.
Universal has committed to regaining control of the Okada Manila and returning it to normal operations through legal means.
On 27 April 2022, the Philippine Supreme Court Second Division issued an order to return Okada to his status before his removal as Tiger Resort CEO, shareholder and chairman. Subsequently, Universal filed a motion on 2 May for the Supreme Court to reconsider. This motion is currently under deliberation.
Universal confirmed that once it receives the results of the Supreme Court decision, it will move forward with “reclaiming the Okada Manila facility.”
Universal notes that 99% of Tiger Resort's voting rights belong to Tiger Resort Asia and that its directors are recognised under Hong Kong law.
Therefore, Universal believes Okada and his collaborators violated Hong Kong law. The company intends to bring criminal charges against Okada.
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