Taiwan could legalise casinos on the Matsu islands

The parliament of Taiwan will soon pass a bill about gambling activities, which would allow the creation of the country’s first casino resort on the Matsu Islands.
If the procedure is progressing normally, the regulation could be passed in June 2015.
The first casino establishments are then expected to open by 2019.

An amendment in 2009

In 2009, an amendment had been adopted to lift the 15-year-old ban on land-based casinos on the islands Kinmen, Matsu and Penghu which are located off the coast of Taiwan.
Just weeks after this legislative change, Penghu held a referendum in which voters decided not to build such facilities.
Kinmen however, which is just a few kilometres from mainland China, is proving to be a potentially lucrative site even if no referendum has been held.
Matsu is the only region in which the electorate voted in favour of the construction of casinos, which would boost tourism and create jobs.

A necessary regulation

If the draft law that was debated in parliament is passed soon, the first casino complex could be completed by the year 2019.
Such an establishment should attract about 5 million tourists on average per year in the region.
Despite the 2009 amendment and the referendum, this text is still necessary for gambling to finally be legalised on the Matsu Islands, and the bill can even pave the way for the development of casinos in other parts of the country.
If the legislation is passed in the parliament, the government would create a centralised regulatory authority for gambling that would be able to issue licenses.
The number of licences is still to be determined, although many Taiwanese experts believe that the legislation will likely be inspired by the Singapore model, which imposes heavy limitations on how to obtain this permit.

Difficult relations with China

Even though the economic benefits of the opening of casinos on the Matsu island seem obvious, it should also be noted that such a development could create some problems with China, which controls part of the islands.
In fact, Taiwan does not have excellent relations with its neighbour, even though the two countries resumed negotiations in 2008, and the Chinese empire lifted the ban that prevented their continental residents to visit Taiwan.