Although the company had been granted a Provisional Casino License in 2020, this new agreement sets out for the first time the full terms of IEC’s license, including investment expectations and license fee details. IEC will also submit an Implementation Plan to PAGCOR as well as a US$100 million deposit into an escrow account and a separate Php100 million (US$performance bond to ensure payment of all applicable license fees.

In a filing, IEC said it has now submitted its Master Development Plan proposal to PAGCOR for approval, with the entire development set to cover a total gross floor area of at least 250,000 square meters.

“The key concept components of the proposal approved by PAGCOR comprises a hotel with approximately 800 5-star luxury hotel rooms, a casino, restaurants, leisure facilities and shopping arcades,” the company explained.

“The Project components may change depending on market conditions but without changing the key concept, and without in any way diminishing the investment commitment amount. Changes in the project components shall be subject to PAGCOR’s prior written consent.”

Under the terms of the Provisional License Agreement, IEC will pay license fees on a monthly basis comprising 15% of gross gaming revenues generated on all high roller and junket tables, and 25% of GGR on all mass tables and electronic gaming machines.

Explaining its reasons for investing in a Manila integrated resort development, IEC said, “With most of the COVID-19 restrictions now lifted, there were approximately 1.3 million international tourist arrivals in the Philippines in the first quarter of 2023. The Philippines Department of Tourism revealed it is aiming to attract 5 million foreign visitors in 2023.

“The Directors considered that the influx of tourists to the Philippines will boost the economy therein and benefits to the gaming and entertainment industry. The Directors consider that the grant of the Provisional License will provide an opportunity for the Group to participate in the gaming and entertainment in addition to the Existing Hotel and hospitality markets in the Philippines and will enhance future earning capability and potential of the Group. The grant of the Provisional License will be a milestone development of the Group which denotes that the Group is able to operate and manage casino business and gambling activities independently.”

IEC currently co-manages, alongside PAGCOR, a casino in its Manila hotel, New Coast Hotel Manila, where it has been gaining expertise in casino operations. The company recently announced an agreement with Malaysian gaming equipment distributor RGB to acquire 382 slot machines for use at New Coast Hotel casino.