EO 858 Opens New Acquisition Opportunities For Foreign Companies

On 5 February 2010, the issuance of Executive Order No. 858 opened new opportunities for foreign investments in the gaming industry by allowing foreign ownership to exceed 40% .
In the old Eighth Regular Foreign Negative List, foreign equities for gambling were set at 40%. An exception was given, however, to those who have investment agreements with PAGCOR and situated within the special economic zones especially determined by the Philippine Economic Zone Authority (PEZA).

Given the country’s strategic location and the untapped market of the gaming industry, EO 858 now technically allows the entry of more foreign-owned gaming establishment. Also, due to the low number of competitors, it would not come as much of a surprise to see foreign businessmen flocking to the country’s special economic zones. This, in return could result to more structural and economic developments in the Philippines.

Through the years, gaming and gambling industries continue to draw attention. Premier gambling locations such as those in Las Vegas and Macau, prove to be very lucrative investments. Even gaming infrastructures are fast becoming tourist attractions too.

Under the provisions of Republic Act 9487, PAGCOR franchisees are allowed to operate gaming infrastructures, machines and locations, except for jai-alai, as long as the local government’s permission is obtained. Moreover, while it is true that the provision limits and hampers the accessibility of gambling areas and complexes, these are nonetheless, allowed if utilized for tourism's purposes.

Indeed, from time to time, the Philippine government issues directives on foreign business ownerships. With the newly-released order, a surge of foreign investment in the country is very much possible.