An offer has been made to buy the Philippine Amusement and Gaming Corp (Pagcor) for US$10 billion. The size of the offer means the government will seriously consider the proposal of privatising the state gaming company while retaining control of its regulatory functions. Businessman Ramon S Ang leads a group of Malaysian and Indonesian investors interested in making the purchase. Last month President Begnino Aquino III ordered a review of the Pagcor books in an investigation into suspected irregularities and said he believed that privatisation was the way forward.

He commented, “If at some point in time we can do away with having government as the operator and the regulator, that will be a good direction.” Obtaining a price of US$10 billion for Pagcor would certainly give the Philippine economy a boost and the plan has been hailed by some politicians. In an interview yesterday the President called the bid ‘very interesting’ but said the matter would have to be studied to ensure the best price was achieved.

If Pagcor is sold to the private sector, legislators would need to change the Pagcor charter and create a new regulatory body. Previously it has been stated that gambling regulations would be overseen by a government entity fashioned on the lines of the Nevada Gaming Commission. The government would continue to profit from gambling taxes and, depending on the sale agreement, a share of annual gross revenues. Local governments will be anxious to retain their share of casino earnings. The US$10 billion Ang offer is likely to spur into action the move to privatise Pagcor but it is far from being a done deal. (E-08.10.10)

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