MANILA, Philippines—Sen. Jamby Madrigal has urged the Senate ways and means committee to look into the cyber gambling operations at the Cagayan Economic Zone (CEZ), which she said were “inexplicably” not covered by the Philippine Amusement and Gaming Corp. (Pagcor).

“That’s a grave abuse of discretion,” said Madrigal, who added that the CEZ or any other special economic zone should not be allowed to have gambling operations not under the control of Pagcor.

In an interview with the Philippine Daily Inquirer, Madrigal said the CEZ Authority has claimed that the law creating the Port Irene free port, Republic Act No. 7922, authored by then Cagayan Rep. Juan Ponce Enrile in 1995, specifically states that it has the right “to operate on its own, either directly or through a subsidiary entity, or license to others, tourism-related activities, including games, amusements, recreational and sports facilities such as horse racing, dog racing, gambling casinos, golf courses and others, under priorities and standards set by the CEZA.”

To parry opposition from the Catholic Church, which is against all forms of gambling, CEZA has argued that the casinos cater exclusively to foreign players or their proxies, with Filipinos barred from betting.

According to Madrigal, this has made Port Irene the only free port legally allowed to issue online gambling licenses to offshore companies without Pagcor’s approval.

CEZA officials have been promoting the CEZ over the past three years as a hub for gambling. Such games as jai-alai and dog and horse racing complement the growing number of online gaming operators, she said.

Last year, Madrigal said, CEZA made P110 million in revenues, 90 percent of which came from casino earnings. Internet gaming firms are charged a two-percent tax on their gross earnings. The tax revenues are split between CEZA and the free port’s master licensor, First Cagayan Leisure and Resorts Corp.

CEZA said it expected its revenues to double to over 200 million this year with the influx of more cyber gambling operators.

Aside from the question of whether CEZA gaming locators should be supervised by Pagcor, Madrigal said the Senate should also look into reports that some of them were operating outside Cagayan, like Makati City.

“I know for a fact that the cyber gambling operations there (Port Irene) have operations outside of CEZA. They have facilities at RCBC Plaza (in Makati),” she said.

“It gives them an unfair advantage over their rivals. I think the Senate should include CEZA gambling in the hearings and ask why this is not included under Pagcor’s jurisdiction,” Madrigal said.

The Senate ways and means committee has just conducted a hearing on the second-hand importation of vehicles in Port Irene in response to complaints by local assemblers and foreign investors led by the American Chamber of Commerce about the government’s failure to impose the ban on used car importation.