Game on in Taiwan?

Back in 2009 the Taiwan’s Legislative Yuan made an amendment to the Offshore Islands Development Act
that made allowance for construction of casinos on the islands of Kinmen, Matsu and Penghu.

Local referendums were still required before casino licenses could be handed out and one held in Penghu that same year failed to get the 50% majority needed – putting any plans there on ice until 2012 and slowing momentum on the other islands.

But the overwhelming success of Singapore’s casinos in their first year of operation and Macau’s continued growth have re-ignited local government desires to bring licensed gaming to their islands.  Matsu county government official Yang Suei-sheng told AFP, “Casinos are more than gambling… it is an industry which can generate investment and lots of jobs.”

He expects casinos to inject $345 million in investment and tourism income, particularly from China.  But there is still local opposition and passing the required referendum, expected toward the end of this year, is no certainty.

If casinos do get built in Kinmen and Matsu it will be very interesting to see how Beijing reacts to them. Their proximity to the mainland China (ie right there!) will make them a compelling option for Chinese players.

Relations between China and Taiwan are frosty as it is…with the PRC failing to even recognize the Republic of China (island of Taiwan and other island territories commonly referred to as Taiwan) and claiming these territories as their own, despite never having controlled them.  If Taiwan didn’t have a large defense force and the diplomatic support of the US, you get the feeling they would have been swallowed by China not long after Tibet.

So, will Beijing be happy for their countrymen to travel to Taiwan’s casinos in droves – a scenario they currently tolerate for Macau?  Not so sure.