Galaxy Entertainment shows thirty-six percent increase for quarter one, despite the negative news about the Boracay project. Galaxy was also in the news as a potential buyer of a Wynn resort, but that was supposition more than truth. What is happening is a continued battle in the Philippines to begin a new project worth $500 million.
The Boracay project is getting flak and Galaxy’s partner is behind trying to get the integrated hotel going. Both Galaxy and their partner would like to keep the project going; however, President Duterte is making some trouble in that area. He has recently announced a six-month closure of the island for a clean-up project. He feels the island is a cesspool, which needs to return to pristine forests and beaches, with no gambling. Well, at least no new casinos.
A few days ago Galaxy Entertainment Group announced they would put their plans on hold, but not give up. The land for their project is already purchased, but that does not mean they will gain a license for the casino portion of their plans. For now, they may only be able to build a hotel with other entertainment sans the gambling.
In a new announcement, Galaxy is backing President Duterte’s plans to close the island, even though it puts their plans for a hotel-casino further behind. Perhaps, the group attempts to gain President Duterte’s favor and at least allow a hotel to be built on the land they purchased.
The Interview of Galaxy
The spokesperson for Galaxy entertainment published a filing to show their first-quarter earnings and make a statement about the Boracay Island closure. The filing went to the Hong Kong commission, where the company is listed on the financial exchanges. They state their partner is working to gain clarification for the project and to try and get the hotel portion of the project approved.
The company is part of six casino operators in Macau, and in March they announced their decision to develop a casino resort with sixty tables in the Philippines, on Boracay. Macau is becoming increasingly competitive with many casinos and new projects. Moving to a different location would help keep Galaxy earnings up. China is also making things harder and does not allow mainland gambling.
Trying to break into the regulated Philippines market is smart, except for the President who is not behind more casinos being added to any of his islands. PAGCOR was ready to issue a temporary license but is no longer able to do so.