PAGCOR’s Casino Filipino Manila Bay lost P2.1B in income in last 5 years

State-owned Casino Filipino’s Manila Bay branch lost P2.1 billion of its income in the last five years, the Commission on Audit (COA) said.

The casino’s total earnings of P10.6 billion in the last five years were easily wiped clean as its dues exceeded its income, according to the commission’s 2018 annual audit report on regulator Philippine Amusement and Gaming Corporation (PAGCOR).

PAGCOR is also the operator of Casino Filipino Manila Bay.

The casino’s branch operating expenses reached P6.5 billion, while dues in franchise taxes totaled P527 million, according to the COA.

The mandated contributions to national government agencies, Dangerous Drugs Board and the Philippine Sports Commission reached P5.26 billion, while the host city’s share and Casino Filipino’s donation amounted to P422,000. 

The commission noted that Casino Filipino Manila Bay has been incurring losses in the last five years:

• P352 million in 2014

• P458 million in 2015

• P386 million in 2016

• P413 million in 2017

• P502 million in 2018

“The aggregate net losses of P2.113 billion incurred by CF-Manila Bay cast doubt on its ability to continue as a going concern and the said condition was not disclosed in the Notes to Financial Statement as required,” state auditors said.

The situation has prompted the commission to task PAGCOR to execute the following:

• assess the casino’s ability to continue operating in view of its losses

• disclose the casino’s financial condition in the Notes to Financial Statements

• come up with realistic development plans and strategies to generate sufficient funds to sustain its operations—otherwise consider closing it to avert further losses

PAGCOR attributed the losses incurred by Casino Filipino Manila Bay to the disintegration of income- generating satellites from Casino Filipino-Pavilion, competition from integrated resorts, and lower number of gaming tables and slot machines ahead of transferring gaming facilities due to a fire incident in 2018.

The regulator has apprised the COA audit team of the proposed strategies, including a 65-35 sharing scheme with gaming proponents, rightsizing of the casino operations to address its losses. —VDS, GMA News