Duterte Ally Eyes Casino Partner in Marcos Kin-Backed Builder
Monday, Dec 9, 2024 12:06 am ET
4min read In the ever-evolving landscape of the Philippine casino industry, a significant development has emerged as a Duterte ally, billionaire Enrique Razon, plans to invest in the casino venture of businessman Dennis Uy, a long-time supporter of President Rodrigo Duterte. This strategic partnership, between Bloomberry Resorts Corp. and PH Resorts Group Holdings Inc., is set to reshape the casino sector in the Philippines.
The proposed investment aligns with Razon's preference for 'boring but lucrative' investments, as the casino sector in the Philippines has shown steady growth and profitability. Despite the recent ban on online casinos catering to Chinese gamblers by President Ferdinand Marcos Jr., the industry remains an attractive opportunity for investors like Razon. The ban, while disrupting the sector in the short term, is expected to lead to a more stable and sustainable long-term growth as companies adapt to the new regulations.
Razon's investment in PH Resorts, which is building casino resorts in Cebu and Pampanga, is a strategic move that complements his existing portfolio of stable, profitable businesses. This diversification into the casino sector allows Razon to capitalize on the industry's growth potential while mitigating risks through his core investment in Bloomberry Resorts Corp. The partnership also presents an opportunity for PH Resorts to tap into the local market and other international markets, reducing dependence on the Chinese market.
The political climate in the Philippines, including the shift from Duterte to Marcos Jr., has significantly impacted the casino sector. The ban on online casinos catering to Chinese gamblers highlights the vulnerability of these operations and the importance of diversification. As Beijing tightens its grip on Chinese nationals gambling abroad, Philippine casinos may face reduced Chinese patronage, impacting their profitability. However, the Philippine casino sector is seeking opportunities for diversification and expansion, such as targeting local and other international markets, to mitigate these risks.
In conclusion, the proposed investment by Enrique Razon in Dennis Uy's PH Resorts Group Holdings Inc. is a strategic move that aligns with Razon's preference for stable, predictable investments. The partnership presents an opportunity for both companies to capitalize on the growth potential of the Philippine casino sector while mitigating risks associated with the Chinese market. As the industry adapts to the new regulatory environment, investors like Razon are poised to benefit from the long-term prospects of the casino sector in the Philippines.
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