Taiwan considers legalizing casinos

The presentations will come amid signs of rekindled interest in developing casino resorts on the islands following the success of Singapore's two integrated casino resort projects.

The renewed craze has also been fueled by reports that outlying islands will be given priority when Taiwan opens its doors to independent Chinese tourists, according to industry sources.

If all goes well, the ministry said, the bill will be sent to the Legislative Yuan for screening in September when the lawmaking body begins its fall session.

MOTC Deputy Minister Yeh Kuang-shih said that while the ministry has drafted regulations on casino resort operations, it would still be up to island residents to determine through a referendum whether special casino resort zones are established there.

But the topic has drawn renewed interest because of the financial success of Singapore's two integrated casino projects, which reportedly have generated annual revenues of US$2.8 billion and US$3 billion.

Both Matsu and Kinmen have expressed keen interest in legalizing the casino business because of the possibility that Chinese citizens may be allowed to travel on their own rather than in tour groups to Taiwan's outlying islands starting in June.

According to MOTC officials, Taiwan will take its cue from the Singapore model in opening casino resort franchises. Under the Singapore model, the casino is only a part of the resort business.

"The casino will only be a tool to help boost tourism, " an MOTC official said, adding that casinos will be put under strict regulations and monitoring to minimize any possible adverse impact on society.

According to the draft bill, the licensing fees and special casino tax to be levied would fall between 12 to 15 percent of business.