Cagayan Online Gaming Supports Economy

Published Monday, December 14, 2009 - Online-Casinos.com

According to the Business Mirror which comes to the world via Philippine Business Daily Mirror Publishing, Inc., in Makati City, Philippines, the Cagayan unique zone defies the global downturn in the economy. The district of Cesa, because it is a free port, operates similar to Hong Kong, Singapore, Labuan in Malaysia or Hamburg in Germany.

It is the only economic zone in the Philippines with the legal capacity to host and issue licenses to offshore companies for the purpose of web gambling. The zone has been declared Asia’s first and only interactive gaming jurisdiction by the International Association of Gaming Resources. Online-gambling licenses are given only to offshore-based corporations so as not to overlap the operations of Pagcor, the only national agency allowed to operate gambling in the country. The idea of proxy players who represent foreign clients or players are the only ones allowed to place bets in the facility. Only foreign clients or players who are brought in or introduced by agents of a licensed operator are allowed to play.

The development of the IT facilities and telecommunications has been a priority for the regional government. Infrastructure costs have run into the millions proving that this area is committed to creating a vital long term economy based on online gambling. According to the in depth article from the Business Mirror over 47 Online Gambling Lottery Licenses have been issued by First Cagayan, a Filipino corporation with more applicants waiting. The fee is $40,000, with $25,000 refundable should the applicant not be successful. The application fee includes the first year’s annual fee. In the second and subsequent years, annual fees are set at $40,000 per annum, and includes up to $15,000 as an advance against future taxes. Ceza tax per operation is set at 2 percent of the gross win. Gaming licenses are granted only after the operator’s gaming software has been tested and certified. Operators are also required to maintain a buffer of funds to meet pay outs to players.

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