China’s call to ban all online gambling activities which cater to the Chinese population has drastically impacted the share prices of the Philippines’ top office leasing company Megaworld which have dropped by nearly 22 percent since.
The online casinos offering services to offshore patrons form 12% of Megaworld’s total rental gross leasable area.
However, the company’s Chief Strategy Officer Kevin Tan has said that China’s move won’t impact its home sales and office leasing business.
Talking to Bloomberg, Tan said: “While we are the biggest lessor of office spaces in the Philippines, the (online casino) issue won’t affect both our office and residential businesses because our exposure remains small and manageable.”
Chinese nationals account for 13% of Megaworld’s 215 billion peso residential sales take-up in the 18 months through June 2019 and its impact will be seen only when the projects are completed, Tan explained.
“We are quite comfortable with this exposure and we don’t see ourselves increasing the percentage contribution of Pogo to our business in the next two years,” he added.
Philippine Amusement and Gaming Corporation (PAGCOR) has already rejected China’s demand to ban all online gambling operations in the country.
PAGCOR official Victor Padilla has said they don’t have any plans to shut currently operating offshore online gambling venues. He also said that the statement from the Chinese Embassy was an exaggerated representation of facts and an overreaction.