THREE-PRONGED MANDATE
Pagcor was created in 1977 by then President Ferdinand E. Marcos, through Presidential Decree 1067-A, as a 100-percent government-owned and -controlled corporation. The agency acquired a 25-year charter on July 11, 1983 under Presidential Decree 1869, and was allowed continued existence by Marcos’s immediate successor, Corazon Aquino, as well as by subsequent presidents.

The charter assigned Pagcor with a three-pronged mandate: regulate all games of chance, particularly casino gaming in the country; raise funds for the governments' socio-civic and national developmental efforts; and help boost the country's tourism industry.

Under that old charter, though, Pagcor and Pagcor alone was allowed to run and operate legal gaming and gambling, and typically, in what are called “special economic zones.”

But since Pagcor was granted a new charter last year, it can now set up, subfranchise, and approve casino operations anywhere in the Philippines.

The caveat is that under the new charter, as it was in the old, Pagcor can do so only with the consent of local government units.

Still, chances are not one of the 11 local governments that have given their nod to Pagcor operations in their area is regretting its decision.

An official report obtained by the PCIJ showed that from 2004 to 2007, the 11 cities hosting Pagcor gaming outlets have received a four-fold average increase in their “share” from the agency's revenues.

Manila tops the list, with “actual remittances” from Pagcor of P437 million from 2004 to August 2007; Pasay City, P196 million; Angeles City in Pampanga, P188 million; Cebu City, P187.5 million; Paranaque City, P172 million; Tagaytay City, P92 million; Davao City, P86 million; Olongapo City in Zambales, P78.5 million; Bacolod City, P74.5 million; Mactan in Lapu-Lapu City, Cebu, P64.5 million; and Laoag City in Ilocos Norte, P25.5 million. — with additional reporting by Tita C. Valderama

SIDEBAR Safe Bet or Big Gamble? SOON AFTER she took power in January 2001, President Gloria Macapagal Arroyo gave her imprimatur for the Philippine Amusement and Gaming Corporation’s (Pagcor) showcase project that she had wanted to christen “Bagong Nayong Pilipino Integrated Tourism City.” A little more than six years later, Pagcor unveiled its plan for what is now called the “Tourism City” project along Manila Bay. The project, Pagcor said, would bring in millions of dollars of revenues for the government, give a million Filipinos jobs, and pack in 10 million tourists in the first five years of its run. Pagcor also said that it would be the Philippines's answer to Macau's gaming paradise and Singapore's Sentosa. Through Tourism City, Pagcor hopes to turn the Philippines into Asia's premier gaming-and-tourism hub. The project, however, is up against formidable competition across the world, with the players multiplying every year. The “Asian Casino Executives Summit” scheduled in Singapore on September 9-10 has organized panels along themes that mostly exclude Manila as a serious contender. For instance, under the “Asian Gaming Model Analysis” session, a panel has been organized on the theme of “Singapore vs Macau: Examining the Gaming Business Models and Strategies of the Two Territories.” A second session on “Assessing the Growth Opportunities in Asian Gaming Sector” features resource persons from Japan (“A Yen for Gaming – Japan Heading Down the Casino Development Path”), another on Vietnam (“Vietnam: The Next Gaming Investment Frontier?”), and a panel discussion on “India, Cambodia, Taiwan, Thailand, and Indonesia – Where are Asia’s Next Gaming Hotspots After Macau?” Pagcor President Rafael ‘Butch’ Francisco, however, scheduled to speak at a 30-minute, pre-lunch session, on Day 2 of the summit, on the topic “Casino Real Estate Investment Opportunities: Pagcor City – A Mega Real Estate Investment Project in the Philippines.” Francisco told PCIJ recently that Tourism City is based on the business model of Las Vegas, which has been dubbed as “The Entertainment Capital of the World,” or even derisively, “Sin City.” The U.S. city of Las Vegas in Nevada boasts of The Strip, a 6.4-kilometer section of Las Vegas Boulevard South that hosts most of the world's largest casinos, hotels, and resorts. The Strip contains 18 of the 25 largest hotels in the world, with a combined capacity of over 67,000 rooms. “The idea is not just to build a casino, the 65 percent (component) is to bring in tourists,” Francisco explained. “You know in Las Vegas, the streets are full of people, tourists, unlike in Macau that has no people on the streets, all gamers.” Manila’s Tourism City, Francisco said, will be a mixed 65-35 percent non-gaming and gaming operations. It will feature casinos, resort complexes, theme parks, theaters, and even a retirement village. Its master plan was launched in April 2008 during the Asia's Gem Gaming and Entertaining Leisure Expo, a forum of casino and tourism magnates all over the world. It’s not clear, though, if Tourism City’s proponents are aware that since 2006, Macau has outstripped The Strip as the world's most profitable gaming market. Macau raked in $6.485 billion from slots and table games that year, ahead of Las Vegas's $6.079 billion. But in his interview with the PCIJ, Francisco did clarify President Arroyo’s role in the project. He said, “It's been a long time since 2001 (when) she had told us to proceed with the project. That's her only role, the parameters she left to us, the Pagcor board.” However, when Tourism City begins to unfold, Francisco, laughing, said: “By that time in 2010 (when project rolls out), iba nang presidente ang makikinabang d'yan (another president will benefit from it)!” — Malou Mangahas Pagcor's 13: Where to Gamble METRO MANILA 4 casinos: The Heritage Hotel in Pasay City; Provident Resources International Complex in Parañaque City; Hyatt Hotel and Casino and the Manila Pavilion Hotel in Manila CEBU 2 casinos: Waterfront Airport Hotel & Casino, fronting Mactan International Airport and Waterfront Cebu City Hotel & Casino in Lahug ANGELES CITY, PAMPANGA 2 casinos: Along McArthur Highway in Balibago and inside the Mimosa Leisure Estate in Clark Field A CASINO EACH • Fort Ilocandia Resort Hotel in Laoag City, Ilocos Norte • SM Tourism Estate across Taal Vista Hotel in Tagaytay City • Subic Bay Freeport in Olongapo City • Grand Regal Hotel in Davao City • Pagcor Hotel in Bacolod City