CEZA cancels 25-year license agreement with FCDLC
The Cagayan Economic Zone Authority (CEZA) canceled its 25-year license agreement with online casino operator Foremost Cagayan Development and Leisure Corp. (FCDLC).
In a report, CEZA said that this decision was made after an evaluation showed it is “grossly disadvantageous” to the government and failed to deliver on its investment commitments.
CEZA Administrator and CEO Jaime Escano said, “Upon the conclusion of the audit and evaluation that was conducted on all licensees and registered enterprises engaged in interactive gaming activities, we found that Foremost Cagayan Development and Leisure Corp. did not comply with its obligations under its license agreement.” Escano terminated the FCDLC license after three years.
CEZA authorized FCDLC to establish and develop a smart city and industrial park, an international airport, generation and distribution facilities for power, water, or other public utilities, and residential complexes or township within the Cagayan ecozone, all in connection with the development, operation, and conduct of interactive gaming facilities and land-based casino enterprises and facilities.
FCDLC was granted a 25-year license in 2019 to operate an online casino inside the Freeport. As part of the agreement, FCDLC has committed to invest $500 million or $33.333 million over the next 15 years to develop the various complexes.
CEZA said the FCDLC did not fulfill its commitment and only invested nearly P250 million (US$4.36 million) in the last three years while incurring losses during the same period.
