A US investment group and a Macau-based gaming operator are in talks in the Philippines to spend $1bn on two new casino resorts.

The Philippines has emerged as one of Asia’s foremost gambling destinations as China’s crackdown on corruption keeps Chinese high rollers away from Macau.

Sino-American Gaming Investment Group and Macau Resources Group have proposed large scale resorts on Cebu, an island popular with tourists, and on the island of Napayawan, near a proposed airport.

Francis Hernando, vice president at gaming licensing and development at regulator PAGCOR, said while letters of intention from the groups had been received, the regulator currently had no categorical position on the proposals as it is working on an existing pipeline of resorts.

The proposals, however, may be viewed favourably as the locations are away from Manila, which already has two in Entertainment City, an area modelled on the Las Vegas Strip, with another two set to open in the next three years.

Michael Foxman, managing director of Sino-American Gaming, said hotel chain Banyan Tree would take part in the development and that they were also negotiating with the Marriott group. They have also signed on with a Las Vegas partner for entertainment.