hares in Melco Crown (Philippines) Resorts fell 12.6 %, Belle Corp’s were down 10.3 % and Bloomberry Resorts and Alliance Global Group fell 5.8 and 4 % respectively.
Until now, the understanding was that the casinos would pay a 5% franchise tax from gross gaming revenue as part of gaming fees of 25 % tax on gross mass market gambling revenue and 15 % on VIP turnover.
“The low tax level was the magnet that attracted foreign investors to team up with Filipino partners in the gaming business,” wrote a commentator in Malaya Business Insight. “The tax will kill the goose that lays the golden egg.”
The first of the four planned Entertainment City casino hotels, Bloomberry’s Solaire Resorts and Casino, opened on March 16. The other three - Travellers’ Resorts World Bayshore, the Belle and Melco joint venture Belle Grande Manila Bay and Universal Entertainment’s Manila Bay Resorts - are far from completion.