Policies of the Philippine government have played a role in Melco Resorts and Entertainment (Philippines) Corporation’s decision to delist from the Philippine Stock Exchange (PSE).

The operator of City of Dreams Manila filed its petition for voluntary delisting at the PSE, which included a tender offer report by independent financial adviser FTI Consulting Philippines, Inc. (FTI CPI), stating, “Despite the industry’s positive outlook, it is not without risks brought about by the current regulatory environment.”

FTI CPI noted how as early as March 2017, state regulator Philippine Amusement and Gaming Corporation (PAGCOR) announced a five-year moratorium on the issuance of gaming licenses for Metro Manila-based casinos, on existing operators’ concerns of oversupply. “Though this is expected to protect the interests of these early investors, the moratorium on mega-casinos in Metro Manila may encourage other foreign players to invest elsewhere.”

FTI CPI also said that the current administration’s policies on casino and gaming were “quite unpredictable,” citing the August review by the Department of Justice (DoJ) of Landing International Development Ltd.’s lease contract for the creation of a resort. The justice department ended up recommending the termination of the contract, saying the ascribed market value of the property to be leased was much lower than those of nearby casinos.