At present, however, Favila said, Philippine law allows only up to 40-percent foreign equity for all forms of gambling operations.
Favila was the guest speaker Wednesday at the Asia’s Gem Gaming and Investment Conference held at the World Trade Center.
According to Favila, the gaming industry is a major contributor to job creation, particularly in the services sector.
The gaming industry, likewise, Favila said, could be a catalyst for tourism promotion.
Thus, Favila would encourage the establishment of gaming centers in all resorts such as in the world-famous Boracay.
"The government should look into the possibility of opening up the gaming industry to top global players," Favila said.
According to Favila, "these foreign investors can develop large-scale projects such as world-class resort casinos which offer both gaming and non-gaming leisure facilities."
Favila noted that "in a competitive world of sun, sea and sand attractions, the whole idea now is to offer a more complete package to visitors – total entertainment to include among others, cultural experiences, performing arts and gaming."
The DTI head stressed though that the regulatory framework for the industry should be clearly defined to produce the desired effects of minimizing social costs and developing a world-class industry without stunting the growth of the gaming industry through over-regulation.
More importantly, Favila stressed, "a social responsibility policy has to be established."
Such a policy, Favila said, would ensure that the economic and social contribution of such investments would be clearly visible in such projects as daycare centers, youth and senior citizen facilities, parks and community centers, redevelopment projects for devastated areas, public recreation, convention and entertainment facilities to promote the tourism industry, housing and public transportation facilities.
Previously, Ceferino Benedicto, vice president of the Philippine Chamber of Commerce and Industry (PCCI) had proposed a surefire way of raising additional revenues for the cash-strapped government.
Benedicto had proposed the conversion of the historical Corregidor Island into a gambling and prostitution mecca similar to the United States’ Las Vegas.
According to Benedicto, converting Corregidor Island into a casino and allowing legalized prostitution would earn a lot of money for the cash-strapped Arroyo government.
In all seriousness, Benedicto said that the money raised from gambling and prostitution on Corregidor could be used by the government for vital infrastructure projects.
Corregidor, Benedicto said, could be developed much like Las Vegas where gambling is allowed and "pimps openly offer girls".
PCCI president Ambassador Donald Dee, however, tried to be more diplomatic about Benedicto’s proposal.
According to Dee, Benedicto wants to transform Corregidor into a "world-class tourist facility."