Whilst protestors rally against a new casino planned for Rizal province in the Philippines, and bribery scandals re-emerge in Nueva Vizcaya province over jeuteng numbers games and local mayors, Cagayan province is setting the stage to become one of the busiest economic areas of the country. A casino resort to entice visitors from China and Taiwan is being developed by First Cagayan Resort and Leisure Corp along with the construction of an airstrip to service the previously remote area of northeastern Luzon Island.

The area is remote but it is being transformed into the Cagayan Special Economic Zone and Free Port, and is just a 45 minute flight from Taiwan. First Cagayan is investing heavily in telecommunications facilities in the town of Sta Ana. The company has been appointed as the master licensor for interactive gaming, with exclusivity for 25 years, and has oversight responsibilities for any companies setting up online operations in the Philippines. The master licence allows First Cagayan to issue seven-year licenses to foreign entities to operate online gambling.

Due to a provision of the Republic Act 7922 passed in 1995, the Cagayan Economic Zone Authority (CEZA) is currently the only eco-zone in the country that has the legal capacity to host and issue online gambling licences to offshore companies. The Philippine Amusement and Gaming Corporation (Pagcor) has the sole mandate to operate legalized gambling in the rest of the country, and Filipinos cannot legally gamble online.

CEZA is promoting Cagayan as the gateway to the United States and Asia. Beneficial tax rates for foreign companies plus excellent state-of-the-art hosting and backup services are hoped to encourage online gambling businesses to set up operations in the Philippines. Although any companies would be required to domicile in the country, they would not need to be incorporated there. Stringent security measures to ensure fair play and player winnings are said to be in place. (E-11.08.06)

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