PH Resorts Group Holdings received bad news from PAGCOR this week. The regulator’s Board revoked the Provisional License for the company’s Mactan integrated resort project. Two PH Resorts subsidiaries got the official notice, Lapulapu Leisure Inc. and Lapulapu Land Corp.
The company filed the announcement with the Philippine Stock Exchange yesterday. PH Resorts emphasised the revocation won’t hurt its finances much since the project never opened.
The Mactan development was supposed to be part of PH Resorts’ expansion into Cebu. But the project faced problems from the start and never got off the ground.
Why PAGCOR Pulled the Plug
The project simply didn’t progress. Years passed without any commercial operations starting at the site.
PAGCOR doesn’t let provisional licenses sit unused indefinitely. Regulators expect licensees to actually build and operate their facilities within reasonable timeframes.
PH Resorts couldn’t overcome the challenges blocking the project. The company never generated a single peso in gaming revenue under this license. No revenue means limited financial damage from losing it.
The Philippine gaming market remains competitive. PAGCOR wants operators who’ll actually develop their licensed properties.
What Happened to the Development Plans
The Mactan resort was part of PH Resorts’ older strategic plans for the region. Those plans are now dead.
PH Resorts had been talking with EEI Corporation about a potential partnership for the project. Those discussions never reached final agreements. With the license gone, the partnership idea is off the table completely.
The formal revocation ends any possibility of reviving the original development. PH Resorts told investors it’s looking at other business opportunities instead.
The company said it’ll update shareholders on any new plans. But they’re not sharing specifics yet about what comes next.
How This Changes PH Resorts’ Strategy
The company insists its remaining operations aren’t affected. PH Resorts still runs other gaming properties in the Philippines.
Losing the Mactan license forces the company to rethink its expansion approach. They’ll need to find new growth opportunities to replace what they lost in Cebu.
Other developers might see opportunity here. The Cebu gaming market still has potential even though PH Resorts couldn’t capitalise on it.
PH Resorts promised to keep the stock exchange informed about future strategic moves. The company’s exploring options that might support growth down the road. For now, they’re focused on their existing properties and figuring out next steps.
The revocation shows PAGCOR won’t tolerate inactive licenses. Operators need to deliver on their promises or risk losing their permits. That’s a clear message to the rest of the industry.
