Belle Corp., a subsidiary of SM Group, recently announced that it will suspend its plans to expand its online gambling business. Senior management admitted that in light of the recent intense debates over online gambling regulation in the Philippines, Belle has decided to adopt a more cautious "wait-and-see attitude" and temporarily shelve its original plans.
Belle is a subsidiary of SM Investments Corp. (SMIC), which had previously obtained an Internet Gambling License (IGL) and planned to enter the rapidly growing online gambling market. However, SMIC President and CEO Frederic DyBuncio recently stated in an interview in Pasay City: "We have indeed considered developing online gambling, but we have chosen to press the pause button for now to observe changes in regulatory directions."
This decision coincides with a new round of policy disputes in the Philippines surrounding POGO (Philippine Offshore Gaming Operators). Several members of Congress have called for a complete ban on online gambling, citing its increasingly severe addiction and social issues. The Department of Health has even classified it as a "public health issue," and President Marcos Jr. has publicly stated that he will "seriously consider" the recommendations for a gambling ban.
Belle Corp.'s main business is high-end real estate development, and it is also involved in gambling projects, including City of Dreams Manila and Tagaytay Highlands Resort. Additionally, the company had planned to build a new casino in Clark, Pampanga, but is currently also in a wait-and-see phase, awaiting further guidance from the gambling regulatory body PAGCOR.
Financial data shows that Belle's consolidated net income for the first half of the year was 801 million pesos, a 9% decrease year-on-year; the second quarter saw an 18% decline in gambling revenue. Although the overall revenue of its parent company SMIC continues to grow, Belle's inaction in the online gambling sector is clearly affected by policy uncertainty.
Industry insiders point out that even local giants like SM Group are cautious about entering online gambling, which shows that the POGO storm has had a substantial impact on the Philippine gambling industry ecosystem. The future trend of the industry will depend on the next "card" played by policymakers.
