Palace: Macau gaming firm may have to build casino elsewhere

HONG KONG — Macau-based Galaxy Entertainment Group may have to build its casino elsewhere if President Rodrigo Duterte makes good on prohibiting the establishment of gaming centers on the island, Malacañang said Wednesday. 

Presidential spokesman Harry Roque said the Supreme Court had ruled that the world-famous tourist spot, which will be closed for six months to undergo rehabilitation, is state-owned.

"The license must have been issued by PAGCOR (Philippine Amusement Gaming Corp). But the president was talking about the physical existence of a casino in Boracay, which he will not allow, unless he has issued a proclamation to this effect because of the decision that Boracay, the island, is state-owned," Roque said in a press briefing here. 

Roque had previously defended the PAGCOR's grant of the provisional permit for the project, saying in March that "an establishment as big as this casino will probably be required to have not just a [Sewage Treatment Plant], but the water recycling treatment facility. He also said "the size (of the casino) will not matter for as long as the necessary infrastructure are there."

Roque said in Hong Kong that Galaxy has a provisional license. "If they can't build in Boracay, perhaps they could build elsewhere. That's why I'm not saying unequivocally about the status of the Galaxy contract. But if the building of a casino in Boracay is an issue, then I have to reiterate already what the president personally said."

Galaxy and Resorts World Manila are reportedly planning to build casinos in Boracay, which has been labeled by Duterte as a cesspool because of the lack of sewerage system. The environmental issues of the island prompted agencies to recommend a six-month closure and rehabilitation of the island starting April 26.  

Last Monday, Duterte said no casinos would be built in Boracay, which he said would be given to those who need it the most. 

"How about the business? I’m sorry but that is the law. The law said it is forestal, agricultural. Why would I deviate from that?” the President said before leaving for China to attend the Boao Forum for Asia conference. 

Duterte met with Galaxy executives in December

Duterte claimed he was not aware of Galaxy's plan to build a casino in Boracay. Malacañang, however sent photos of him meeting with officials of Galaxy four months ago to talk about investments. 

"Galaxy Entertainment, one of the world's leading resorts, hospitality and gaming companies, tied up with a local partner to invest in the Philippines. The company is in the process of complying with government requirements to start operating in the country," a handout released by the Presidential Communications Operations Office read. 

Rep. Alfredo Benitez (Negros Occidental), founder of Leisure and Resorts World Corp., was also at the meeting. PAGCOR chair and CEO Andrea Domingo, Tourism Secretary Wanda Teo, and Socio-economic Planning Secretary Ernesto Pernia were also in attendance.

Asked what would happen to the provisional license granted to Galaxy, Roque said: "Well, you see, the president was highlighting that because of the decision of the Supreme Court on Boracay, it is the president that could actually authorize, through proclamation, how Boracay should be utilized."

"Perhaps the license, if there is any at all, I do not know how this will be resolved," Roque said of the provisional license that he defended less than a month ago.
"But as far as Boracay is concerned, he wants the people to benefit from Boracay."  

Roque said it would be up to the president to decide who would be given tenurial rights in Boracay.

"He (Duterte) has said that he would like to give priority to the ordinary people, to the farmers, if there are," he added.