Philippine Gambling Controversy Forces Belle to Pause iGaming Plans
Belle Corporation has paused its plans to expand into online gaming amid increasing scrutiny from Philippine lawmakers. The company, a subsidiary of SM Investments Corporation (SMIC) with a license to operate internet gaming as part of its broader physical gaming authorization, is now in a holding pattern as it monitors developments in legislative efforts aimed at tightening or potentially banning the online gambling sector.
LISTEN TO THIS ARTICLE:SMIC President and CEO Frederic DyBuncio confirmed that while Belle Corporation had considered launching its own online gaming operations in response to growing digital demand, the decision has been temporarily set aside. The company is currently observing the evolving regulatory environment to assess the potential impact on its existing and prospective operations.
DyBuncio emphasized that Belle has the necessary internet gaming license but is adopting a cautious approach to ensure compliance and sustainability in light of potential legal changes.
Ongoing debates in the Philippine Congress have intensified the uncertainty surrounding the future of the online gambling industry. Lawmakers are divided between proposals that advocate for a complete ban and others calling for enhanced regulatory frameworks.
The concern over the rise in gambling addiction, particularly attributed to the easy accessibility of online platforms and aggressive marketing through digital channels such as social media and e-wallets, has prompted several members of Congress to push for more stringent controls.
The Department of Health has identified online gambling as a public health concern. President Ferdinand Marcos Jr. has indicated that the administration will study the possibility of a nationwide ban, though no definitive position has been declared. The policy uncertainty has left several industry players, including Belle, evaluating the risks of further investment in the online space.
Belle Corporation remains a key participant in the country's gaming and leisure property market. It holds significant stakes in integrated resort developments, including the City of Dreams Manila Entertainment Complex, as well as the Tagaytay Highlands residential and mixed-use resort.
While DyBuncio acknowledged that online gaming has captured more rapid revenue growth compared to physical casino operations, Belle's revenue levels have returned to pre-pandemic performance, even though the growth has not been as strong as in the online segment.
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Belle Sees Financial Health Slip in First Half
Financial data released by Belle shows a decline in profitability during the first half of the year. Consolidated net income fell by 9% to PHP801 million (US$14.42 million) from PHP882.4 million (US$15.88 million) in the same period last year.
Total consolidated revenues dropped by 10% to PHP2.474 billion (US$44.53 million) from PHP2.752 billion (US$49.54 million). The company's share in gaming revenues during the second quarter also saw a sharp decrease, down 18% to PHP772.3 million (US$13.90 million) from PHP943 million (US$16.97 million) in the previous year's comparable period.
In addition to regulatory developments surrounding online gaming, Belle Corporation is also awaiting further directives from the Philippine Amusement and Gaming Corporation (PAGCOR) regarding its second casino project in Clark, Pampanga. The status of this expansion depends heavily on the regulatory guidance expected in the coming months, as the industry continues to navigate a complex policy landscape.
Meanwhile, SMIC reported steady performance, posting a 6% increase in net income for the first half of the year, reaching PHP42.6 billion (US$766.8 million). Consolidated revenues for the period rose by 6% to PHP319.2 billion (US$5.745 billion). Despite the challenges in the gaming sector, DyBuncio expressed confidence that the group would record stronger earnings in the second half, consistent with historical trends.
Earlier this year, SMIC stated that it would prioritize agility and operational adaptability, especially as global economic uncertainty persists. This strategy remains in place as the group continues to monitor macroeconomic trends and evolving regulatory risks, particularly those affecting its gaming and entertainment holdings through Belle Corporation.
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