CASINO

Philippine casino ordered closed for failing to honor revenue-sharing deal

TAGs: frontier wish international ltd, oriental paradise casino, Philippines, subic bay freeport zone, subic bay metropolitan authority

oriental-paradise-casino-closed-philippinesA casino in the Philippines has been ordered closed after failing to abide by its revenue sharing deal with the local regulatory authority.

On Monday, the Subic Bay Metropolitan Authority (SBMA) delivered a cease & desist letter to Frontier Wish International Ltd (FWIL), which operates the Oriental Paradise Casino in the Subic Bay Freeport Zone on Luzon, about 70 miles north of Manila.

According to the Inquirer, SBMA chairman Roberto Garcia accused FWIL of ignoring its obligations under the Freeport revenue-sharing rules. The letter was reportedly sent after the SBMA rejected an FWIL counteroffer regarding its unpaid financial obligations.

The letter didn’t specify the sum the SBMA claims to be owed, nor what FWIL had offered to pay. Freeport rules require casinos operated by the Philippine Amusement and Gaming Corp (PAGCOR) to remit 3% of gross gaming revenue to SBMA. Other casinos calling Subic Bay home include the Venezia and the Grand Seasons Hotel.

The SBMA said the casino would remain closed until FWIL made good on its obligation. There’s little public info regarding FWIL, outside of the fact that it was incorporated in Hong Kong in 2007. The SBMA Business and Investment Department for Leisure said FWIL began operating Oriental Paradise in July 2012 after taking over from another operator.

The Subic Bay Freeport Zone is a former US naval base that was converted into a tax- and duty-free area after the US surrendered control of the base in 1992. In addition to a thriving tourism industry, the Zone is home to large scale industrial and commercial projects, including the world’s fourth largest shipbuilding facility.

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