By Ralph Jennings
MAKUNG, Taiwan, Nov 17 (Reuters) - Taiwan's parliament is set to legalise
gambling on a group of offshore islands as soon as year end, legislative sources
said on Monday, as local officials eye permits for three resort casinos to shore
up their economy.
The passage of a bill authorising gaming in the Penghu archipelago would
bring Taiwan into competition with other East Asia gaming hotspots such as Macau
and South Korea, and upcoming casinos in Singapore, even as the global credit
crisis make it harder for developers to raise funds for new projects.
Penghu, a summer destination in the Taiwan Strait which lies largely
dormant during the winter months, wants to issue three casino permits, most
likely to resorts, after passage of the legislation, local officials told
reporters over the weekend.
Legislation to legalise gambling has been talked about for years, but
received a boost with support from the administration of President Ma Ying-jeou,
which took office in May.
"We don't want to exceed three licences. We're not going to be the same
as Macau," said Su Kun-hsiung, mayor of Penghu's main city Makung, citing
concerns about theft and prostitution. Macau, East Asia's major gaming city, has
28 casinos.
Since opening up to outside operators in 2002, Macau has seen its economy
boom as global giants such as MGM Mirage , Las Vegas Sands and Wynn Resorts set
up casinos there.
Even after a recent downturn, the former Portugese colony is on track to
record $14 billion in casino revenue this year, but construction of new casinos
and plush hotels in Macau and elsewhere in Asia is slowing as the global
financial crisis leaves developers short of funds and reduces gaming revenues.
In a closed-door meeting on Friday, Taiwan legislators agreed to put
their gaming bill to a formal vote, with a majority indicating support, a senior
legislative aide said, speaking on condition of anonymity while the legislation
was still pending.
Penghu's legislator Peter Lin expects the bill to pass by the end of the
year.
British AMZ Holdings is one of three operators looking at sites, with
plans to build as many as 500 rooms on a now barren 11-hectare coastal tract,
spending $200 million on construction and partnering with one of the world's top
five casinos, the firm's Taiwan president Ashley Hines said.
Penghu, which has a population of 90,000, has passed two referenda in
support of gaming as economic boosters edged out religious groups and citizens
fearful of increased crime.
But opposition persists despite an overall air of enthusiasm.
"This is good only for major hotels," said Chen Chen-hsiu, who has owned
a souvenir shop for 19 years. "The overall economy here won't see that much
impact."
(Editing by Kim Coghill) Keywords: TAIWAN CASINOS/
(ralph.jennings@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging:
ralph.jennings.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2008. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including
by framing or similar means, is expressly prohibited without the prior written
consent of Thomson Reuters.
|