MANILA, Philippines — Enrique Razon’s Bloomberry Resorts Corp., owner and operator of the Solaire Resort & Casino in Parañaque and Jeju Sun Hotel & Casino in South Korea, may expand in Japan, but this will largely depend on the final implementing rules and regulations the Japanese government will put in place.
“We will look into it but if it’s too restrictive, the investment may not be (worth it),” Razon, chairman and CEO of Bloomberry said recently.
He said the gaming regulatory environment in Japan may be even less attractive than in Singapore.
“We will wait for the final form (of the rules). We’re not sure yet,” he said.
Razon is interested in expanding his casino operations in Asia, but would only do so if the regulatory environments are conducive enough for business. The countries he is looking at are Japan and Vietnam, but reiterated that his decision would depend on the final regulations governing the industry.
The Japanese government has just decided to establish a framework for the casino industry in the nation. Japan approved the so-called Integrated Resorts Implementation Bill which Prime Minister Shinzo Abe reportedly wants to be taken up by lawmakers by June 20.
The bill in its current form slaps a 30 percent tax on casino gross gaming revenue.
It imposes restrictions on casino visits, limiting locals to three casino visits a week.
Fitch Ratings sees the total market size at around $6 billion below some industry estimates of $12 billion.
For the local market, Razon is optimistic of the gaming sector in the country, borrowing recently a whopping P73.5 billion from a syndicate of banks for Bloomberry’s refinancing and working capital requirements.
Bloomberry said its subsidiaries Bloomberry Resorts & Hotels Inc. (BRHI) would act as the borrower and mortgagor while Sureste Properties Inc. (SPI) will be the mortgagor, pledgor and surety.
The two subsidiaries recently signed the loan with BDO Unibank Inc., BDO Private Bank, Inc., China Banking Corp., Philippine National Bank, PNB Savings Bank, Robinsons Bank Corp. and United Coconut Planters Bank.
It tapped BDO Capital & Investment Corp. as the lead arranger and sole book runner, and China Bank Capital Corporation as the co-arranger.
Bloomberry’s investments include the acquisition of a 16-hectare property in Entertainment City, site of Solaire Resort & Casino and its expansion area.
The company has been able to sustain its turnaround, posting a full-year net profit of P6.063 billion last year, a substantial 161 percent year-on-year increase mainly due to an 81 percent increase in Solaire’s profitability to P6.269 billion and an 82 percent reduction in net losses from its Korea operations to P207 million from P1.137 billion in the previous year.
Razon said the 2017 results are in line with the targeted growth trajectories.
“This is largely due to our top notch management team and the thousands of Bloomberry and Solaire men and women, whose tireless drive and dedication keep us ahead,” Razon said.