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Cancel Boracay casino licenses, TF tells Pagcor

  • Ma. Stella F. Arnaldo
  • October 22, 2018
  • 56.5K views
  • 3 minute read
In Photo: A copy of the letter to Pagcor Chairman Andrea Domingo from the Boracay Inter-Agency Task Force chaired by Environment Secretary Roy A. Cimatu.

THE Boracay Inter-Agency Task Force (BIATF) has requested the state-owned Philippine Amusement and Gaming Corp. (Pagcor) to pull the licenses of all casinos in the island paradise.

The request, as contained in an undated letter sent to Pagcor Chairman  Andrea D. Domingo, also covers casinos that operated before the closure of Boracay on April 26. The letter to Domingo, a copy of which was obtained by the BusinessMirror, was signed by BIATF Chairman Environment Secretary Roy A. Cimatu, and Vice Chairmen Interior Officer in Charge Eduardo M. Año and
Tourism Secretary Bernadette Fatima Romulo Puyat.

“In view of the pronouncement of President Rodrigo Roa Duterte that no casino shall be allowed in Boracay Island, and in the light of the mandate given to it through
Executive Order [EO] No. 5, Series of  2018, the [BIATF] requests that any and all gaming franchise/s and/or provisional license/s in Boracay Island shall be canceled by your good office,” the letter said.

“We shall be grateful for your timely cooperation on this matter for the protection of one of our nation’s most treasured islands,” it added.

Government sources said the three Cabinet secretaries signed the letter when they were on the island on September 28 for a task force meeting.

If Pagcor grants said request, affected casinos are those planned by Macau’s Galaxy Entertainment Group in partnership with Rep. Albee Benitez’s Leisure Resorts World Corp., taipan Andrew Tan’s Megaworld Corp. in Savoy Hotel, and Hotel Soffia owner Archibald Po. Also impacted by the Duterte administration’s policy against casinos on Boracay are those casinos already operating before the island’s closure, such as in Movenpick Resort & Spa owned by juice king Alfredo Yao, Crown Regency Resort and Convention Center of the Cebu-based King family, and Paradise Garden Resort Hotel and Convention Center of entrepreneur Joey Peña.

In Paradise Garden’s case, resort general manager Edwin M. Raymundo submitted a certification to the Department of Tourism (DOT) dated October 5, guaranteeing it “shall not undertake to operate any Casino and/or Online Gaming operations within its hotel/resort premises in compliance to the guidelines of the [BIATF] and/or [DOT].” After Paradise Garden issued said certification, the DOT accredited the resort and allowed it to accept guests in time for Boracay’s reopening on October 26. Prior to Boracay’s closure, the resort had been operating an online gaming operation.

Movenpick has been asked by the DOT to submit a similar certification as part of its accreditation requirements, but has yet to do so.

Meanwhile, Pagcor Officer in Charge Roderick R. Consolacion wrote Alpha Allied Holdings Ltd., which runs the casino in Movenpick, and ordered the company to “cease whatever remaining operations you may have in your casino in Boracay.”

Government sources intimated that despite Boracay’s closure since April 26, junket casino operations continued to operate at Movenpick. “[The BIATF] conducted an investigation based on information sent to its members and found that the casino in Movenpick never closed and continued to bring in guests,” the same sources averred.

Junket operators usually bring in foreign VIP clients, and are paid a commission by the casino for their service. They also act as bankrollers, providing credit lines to the guest players. One of the most popular junket operators in the country, for instance, is Kim Wong, who regularly brings clients to Solaire Resort & Casino, Midas Hotel, etc. In 2016 he was linked to the $81-million Bangladesh Bank scandal, where unknown hackers breached that Central Bank’s accounts in New York, and then wired the money to a Philippine bank and to money remittance agents, and the funds were eventually laundered in casinos. Wong returned to Bangladesh the money he said he received in the transaction.

Consolacion’s letter dated October 1 addressed to Alpha Allied General Manager Jose C. Ibazeta said, however, despite the order to close its casino operations, the company could still “[file] a letter of appeal directly to the Office of the President, if you deem proper.” The Pagcor official added: “The matter on the request for the cancellation of your license shall only be acted upon by the Board [of Directors] upon their return to the country.”

President Duterte reiterated his policy against casinos on Boracay, including those already operating before its closure, during a Cabinet meeting on September 11. In an interview after the Cabinet meeting, DOT’s Romulo Puyat said, “I mentioned to him that there were casinos already operating prior to the closure of the island, and the President said, even those should not be allowed to reopen.” Justice Secretary Menardo I. Guevarra, she added, will be working with the BIATF to enforce this, “because the President already gave the directive.”

Image credits: Contributed photo

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