International Gaming The Philippines - Research Paper Example

HERE HERE YOUR HERE HERE International Gaming Research Paper – The Philippines Manila, the capital of The Philippines, is home to a diverse variety of domestically-based and foreign-based casinos and casino resorts. With a total population of 1.65 million people, Manila is the second largest city in the country and one with considerable commercial development that continue to give the city much needed tourism revenues. Manila currently experiences tourism volumes of one million travelers each year (MSN Encarta 1), which continues to provide nearly four percent of total GDP for The Philippines. Manila gained its first casino in 1990, after de-regulation of the industry in an effort to boost national revenues. Since 1990, Manila has experienced explosive growth in casino development from major players such as Hyatt Hotels and Casinos, Tropicana Casino, The Belle Grand Manila Bay, and the Pharaoh Hotel; to name only a few. Casino development has occurred not only as a product of de-regulation in this industry, but by using government prowess and marketing to lure foreign investment into the country. Unlike many other Asian nations, the government regulatory environment designed to control casino gambling and development is much more liberal, as the government of The Philippines is an electoral system similar to the democratic structure of the United States. This liberal system designed to foster commercial development and support has contributed to rapid expansion of the casino gaming industry in the country. There are difficulties in this industry in the Philippines, however, associated with fragmented regulatory systems designed to control gaming operations. House Representative Danilo Suarez, frustrated with the fragmentation of existing regulatory bodies, was able to foster House support for the creation of a National Gaming Commission that would serve as the singular body to control casino licensing and building cohesion with the disjointed legal systems that currently monitor gaming (Online Casinos 1). It was only recently that Manila achieved an organized system of regulatory authorities that have ensured reasonable provisions are developed to control casino operations, thereby providing gamblers with just gaming systems. There are also social impacts of the gaming industry in The Philippines that cause problems with ensuring further development of more casino resorts in the country. The Philippines is a collectivist nation, meaning that citizens maintain strong connections to group membership and family membership, whereby some of the most fundamental values of society are kinship and education. In 2008, officials and student picketers from the Angeles University Foundation held a picketing protest outside of a proposed site for a new casino, which would be built directly next to the Angeles University (Casino City 1). This protest was so massive in magnitude that it even led to a restraining order against the casino operator, Emaja Internet Gaming. This illustrates that there is much inconsistency in social values about the potential benefits of gaming, which could serve to act as negative public relations that could impede tourist revenues. Furthermore, in 2012, a $2 billion entertainment complex known as Universal Entertainment was under investigation for bribery allegations, including 16 different members of the regulatory Commission alleged to be involved in taking $5 million in payments in receipt of regulatory favors (Casino City 1). This has very large-scale implications for a country that is having difficulty in creating cohesive regulatory structures when even members of government seem to continue to be impelled to take active involvement in bribery. For a nation that is attempting to boost its reputation as a hot spot for tourism, situations such as these continue to provide negative publicity that could erode a competitive marketing position internationally. The Philippines is also creating new regulatory bodies for the control of Internet gaming, a method by which the country believes it can boost revenues domestically rather than having to rely on foreign tourism dollars. A company known as G-Master Technology Company Limited has recently been appointed by the Philippine government to take responsibility as the sole agent for controlling and monitoring online gaming activities (Gambling Licenses 1). This illustrates the potential marketing power of the country by diversifying the gaming industry and also seeking to homogenize regulatory bodies and assign appropriate responsibility to trusted gaming officials to avoid corruption or bribery. The Philippines maintains very similar regulatory practices and legalities as U.S.-based gaming regulations that have been developed through years of experience in the country. For instance, the Nevada regulatory Commission imposes an annual excise tax for those who operate slot machines of $250 (Nevada Legislature 18). The Philippines government imposes similar excise taxes of $350 USD annually as a means of boosting national revenues with the gaming industry. By following the legalities that have given Nevada considerable authority and economic benefit by creating a very powerful regulatory system in this industry, The Philippines will be in a position to make sure that gaming occurs fairly and does not maintain the potential to provide the country with a negative brand perception by many important local and foreign tourists. The future of gaming in The Philippines is yet uncertain, as there are many social inconsistencies about the importance of gaming and its threats to society. Until the national society is able to rectify these differences, there are many different threats to building a positive tourism reputation since many protests and social concerns are highly publicized. If the country and its government are able to create a unified belief in the economic and social benefits of this important tourism industry, and its supplementary online components, it is likely that even more casinos will be developed to provide the country with much-needed revenues. There are currently many deals in the works with major casino operators to build even more casino resorts in the country, which continues to show progression toward building a sustainable tourism model in the gaming industry. This is something necessary if The Philippines desires to be considered a superior travel location with many diverse gaming opportunities. Works Cited Casino City. Philippines Casino gets Picketers. Last Modified January 18, 2013. Web. January 27, 2013 < http://online.casinocity.com/article/philippines-casino-gets-picketers-77261> Gambling Licenses. Internet Gambling Licenses – Philippines. 2012. Web. January 26, 2013. < http://www.gamblinglicenses.com/LicencesDatabaseDetailTxt .cfm?Licenses_ID=127&Region=Asia%20Pacific> MSN Encarta. Manila. Web. January 27, 2013. < http://www.webcitation.org/query?id=1257037530971623 Nevada Legislature. Chapter 463 – Licensing and Control of Gaming. 2012. Web. January 27, 2013. < http://leg.state.nv.us/NRS/NRS-463.html> Online Casinos. Philippines Politician Wants a National Gaming Regulator. Last Modified June 30, 2008. Web. January 27, 2013 < http://www.online-casinos.com/news/news7002.asp> Read More