While the Philippine government raises the regulatory banner on one hand, targeting online gambling platforms primarily funded by Chinese capital (POGO), and on the other hand loudly claims that the gambling industry generates over a hundred billion pesos in revenue annually and is vital for the national treasury, some astute capitals have smelled the "grey window" and swiftly entered the scene.
In the past month, two Hong Kong-listed companies have intensively laid out their plans in the Philippine gambling industry, taking deeper steps and betting against the trend. Interestingly, instead of fleeing, they choose to "double down" amidst the major retreat of Chinese capital and frequent investigations of platforms.
First step: Chinese capital + political and business cooperation, jointly building a gambling platform
The first to make a move was the Hong Kong-listed company "Century Entertainment International Holdings Limited," which signed a cooperation agreement with the Philippine local political and business-backed "World Platinum Technologies Inc. (WPT)" to prepare a joint venture to establish a gambling platform, focusing on system and content development. The joint venture is registered in Hong Kong, with Century Entertainment holding 51%.
This seemingly ordinary cooperation agreement is backed by the intertwining of Chinese capital, former politicians, and entertainment industry connections. WPT's shareholder lineup includes former congressman Mike Defensor (holding 5%), a nephew of boxer Manny Pacquiao's wife, and the British Virgin Islands-registered Chinese company China Grace Worldwide (holding 40%). The goal: to bite into the lucrative, regulatory grey area of gambling content development.
Second step: LET Group cuts overseas assets, only bets on the Philippines
Almost simultaneously, another Hong Kong-listed company "LET Group" also decided to go all-in, withdrawing from all overseas casino operations (including Vietnam and Russia), retaining only one in the Philippines—the "Westside City" casino resort project in Manila.
Facing the financial strains, borrowing difficulties, and advancement risks disclosed in the financial reports, LET Group still opts for a "do-or-die" strategy. The chairman Luo Qibang frankly stated that this investment is a matter of "life and death" for the company.
Common logic: Finding "grey opportunities" under high pressure
The seemingly independent investment actions actually reflect the same logic:
Betting that the Philippines will not completely ban gambling, but just "tighten regulation"
Whitewashing Chinese capital background through joint ventures and localization
Seizing the still available policy loopholes for compliant entry
In other words, their bet is not purely on profits, but on the Philippine gambling regulation maintaining a "turn a blind eye" balance.
Is the Philippines still that "gold mine"?
Realistically, gambling remains one of the financial pillars of the Philippines:
2024 PAGCOR licensing expected to bring in over 50 billion pesos in revenue
More than 30,000 jobs related to gambling
Annual industry revenue exceeding 100 billion pesos
Even as online gambling sparks criticisms like cross-border money laundering and youth addiction, PAGCOR chairman Tengco still insists on not completely banning it, but rather "regulating and guiding, legal taxation."
For capital, this is the "signal": as long as a compliant path can be found, there is still room for business.
On one hand sweeping, on the other inviting investments, what is the logic behind Chinese capital's bet? Ironically, while Chinese-backed gambling platforms are frequently investigated and expelled, the Philippines is on the other hand openly welcoming joint ventures, licensed, localized gambling projects to land. Is it suppression or reshuffling?
For Century and LET, the logic is clear: "As long as they are not hitting us, there is still a chance to turn the tables."
This is not capital frenzy, but a final desperate gamble
Southeast Asian gambling has always been a high-return, high-risk "grey area gamble." Under the dual pressures of China's continuous crackdown on cross-border gambling and the unclear high-pressure policies of the Philippines, only those who truly dare to go all-in and gamble with their lives remain.
This is not a regular investment, but a deep gamble on regulatory attitudes, compliance windows, and power structures—if won, it is another profit legend; if lost, it could mean total loss.
And this card game will ultimately determine: who can still stay at the Philippine gambling table.
