Casino Gambling Legalized in Taiwan

Taiwan has decided to legalize land based gambling in its outlying islands though its mainland will not be open to gambling.  The number of casinos that will be permitted on the islands has not been determined yet.  Justin Chou spokesperson of the Taiwanese Nationalist Party said, “Because Taiwan’s economy is now falling, the belief is that these resort projects can help spur the economy.” Joe Brennan, Chairman of Interactive Media Entertainment and Gaming Association feels that Asia will remain viable for new gambling enterprises in the future, “It’s one of the reasons why Las Vegas has done so well. The city is a magnet for high-stakes gamblers from the Far East. That’s part of the reason that Macau took off. Its success has had a cascade effect around the Far East.”

Macau has been playing host to many high profile tournaments that are part of Asia Pacific Poker Tour and the Asian Poker Tour.  According to a 2007 USA Today article, the Venetian Macau is the largest building by area in all of Asia with 10.5 million square feet and 3,000 hotel rooms.

The industry has been hit hard by the flagging economy, gambling revenues in Nevada have dropped to nearly 15% as of November 2008.  Despite that fact, Taiwan is looking to compete with Macau and Singapore hoping to bring needed revenue to its economy.  Brennan explained that its not unusual for a company to integrate gambling into its country by first allowing it into its outlying areas.  Many US states only allow gambling if the casino is over water.

Residents of the outlying islands of Taiwan must first approve the measure for it to be enacted and over 50% of voters must vote yes for it to pass.  The casino gambling law also requires the establishment of an “outlying island development fund” of nearly $1 billion.  No timeline has been established for the vote to take place or any indication of when the newly approved casinos may begin to be built on the islands.