Taiwan a winner with casino legislation | IXGAMES

Taiwan’s lawmakers passed a bill that allowed casinos to be opened for the first time. They reached the sensible conclusion that casinos, if carefully planned, could boost the nation’s tourism industry while delivering substantial economic benefits. The legislation, which completed its first reading in 1997, will allow Taiwan’s offshore islands to build casinos on the condition they gain resident approval via referenda. Penghu County is set to be the first region to go to polls in a vote tentatively scheduled for June. Although casinos are not cure-alls for the nation’s fiscal ills, they may go someway toward providing new opportunities for Taiwan’s economically disadvantaged areas. The Council for Economic Planning and Development estimates that Penghu’s casinos can attract half a million tourist visits each year, generating NT$100 billion (US$2.96 billion) worth of revenues in gambling and tourism. Critics of the move argue that it will have a negative effect on society and risks failing given the global economic crisis. But the government has been guided by logic in its decision, which in this case, is the potential for economic development. In addition, the downturn is not going to last forever, and Taiwan must be ready to take the next step. Take the case of Macau. In 2002, the local government permitted two of Las Vegas’ biggest gaming magnates to set up shop, with the resultant economic boom spectacularly transforming the special administrative region. Today, the former Portuguese colony takes the lion’s share of Asia’s gaming dollars, raking in US$10 billion in 2007. And there is Las Vegas, where over US$11 billion was wagered in 2007, with the city earning substantially more from the almost 40 million people who visited the desert gambling mecca. According to the American Gaming Association, in 2007 the U.S. commercial casino industry grossed US$34.13 billion in revenues and paid taxes of US$5.79 billion. This represents an increase of 5.3 percent and 11.4 percent respectively from the prior year. While Taiwan’s casino industry is not expected to reach a similar size, it would add another feather to the nation’s tourism cap and increase employment opportunities on the island. In addition, casino-generated tax revenue can be earmarked for such areas as education, health and infrastructure upgrades. By backing casinos, the government has demonstrated its commitment to solving the tough issues, such as equitable economic development, which have stumped previous administrations. This approach not only provides viable solutions to long-term problems, but helps pave the way for Taiwan’s prosperity in the 21st century. Regards ixgames