A prominent Philippine gaming operator has announced a comprehensive strategic review after the Philippine Amusement and Gaming Corp. (PAGCOR) revoked the provisional casino license for its flagship integrated resort project in Cebu. Options under consideration include asset reconfiguration, joint ventures, and potential mergers or acquisitions (M&A), though no final plan has been approved.

Key Developments and Market Impact

• Sector Reclassification: Effective January 5, the Philippine Stock Exchange (PSE) will move the operator from the "Casinos & Gaming" sub-sector to "Hotel & Leisure" within the Services sector. This adjustment follows PSE rules where companies are classified based on sectors contributing at least 60% of their revenue.

• Project Stagnation: The Cebu-based integrated resort, originally envisioned as a premier destination outside Metro Manila, has never commenced commercial operations. The developer disclosed that all funds allocated for the project have been exhausted.

Financial Risks and "Going Concern" Warnings

The project faces significant financial headwinds. Following the expiration of a sale-and-leaseback agreement with a major creditor in March 2025, the developer derecognized PHP 13.65 billion in property and improvements while confirming PHP 8.75 billion in financial liabilities.

In late 2025, management issued a "going concern" warning, citing material uncertainty regarding the company's ability to realize assets and settle debts. With partnership talks with major construction firms now terminated, the market remains focused on whether the developer can successfully pivot its business model or secure new financing to survive.