In advance of gaming industry development in Lienchiang County, the Executive Yuan Council passed a draft version of the Casino Management Act today. It will be sent to the Legislature for deliberation.
Given that tourist gaming is a new, complex and high-risk industry, Premier Jiang Yi-huah instructed that the government learn from Singapore, which applies rigid control, has set up a dedicated supervisory organization, and demands cooperation from relevant government agencies to ensure sound development and management of the industry and boost tourism and tax revenues.
Jiang said the bill is open to further and necessary amendment should legislators, after thorough discussion and exchange of viewpoints, make any suggestions during the deliberation process that are deemed would further improve the development, management and supervision of the gaming industry.
According to the Executive Yuan, Taiwan's policy of developing a tourist gaming industry was confirmed by the addition of Article 10-2 to the Offshore Islands Development Act promulgated by the nation's president on January 23, 2009, which stipulates that "tourist casinos…shall be established within international tourist resort zones" if an island's residents approve casino development through a referendum.
After such a referendum passed in Lienchiang County on July 7, 2012, the executive branch picked up the pace in drafting the Tourist Casino Management Act to fulfill the Offshore Island Development Act's requirement of additional legislation to regulate this development.
The main points of the draft are as follows:
1. Tourist gaming is a charter industry, and its operation requires a license issued by the competent authority for tourist casinos. Tourist casinos and the international tourist resorts within which they are located shall be operated by the same managers. The organizational structure of the tourist gaming industry as well as the necessary qualifications of organizers and main shareholders are also listed. (Articles 4-6)
2. Regulations on the permitted number of casinos, periods of monopolistic or oligopolistic operation, application process, qualification review, and application for and issuance of establishment permits and operating licenses are stipulated. (Articles 7-15)
3. Regulations are provided for casino operation, regular reapplication for qualification review, the expiration and renewal of operating licenses, the prohibition of license transfers, revocation and cancellation of licenses and the suspension or closure of casinos to ensure the authorities are able to perform supervisory duties. (Articles 16-25)
4. The authorities' regulatory power and scope are described, including for administrative investigation, inspection and contract review. Investigations may involve parties with an interest in the case and be conducted with the assistance of professionals and specialists. Gaming investigators are to be stationed at casino venues to ensure the authorities can immediately and effectively perform their supervisory duties to prevent illicit activity. (Articles 26-32)
5. Casino owners shall run their businesses responsibly and are required to prevent problem gambling by providing transparent information inside casinos and loss alert mechanisms, banning drunk customers from gaming activities, setting up rules for exchanging casino tokens and limits on loans for casino gaming and promotional advertisement, outlining a code of conduct and taking other protective measures. (Articles 40-48)
6. Entry bans on certain groups of people, the mode of application for such bans and penalty and response mechanisms for illegal entry are defined. (Articles 54-63)
7. To expand clientele and prevent money laundering and illegal debt collection, gaming brokerage is allowed under certain conditions and regulated by a licensing system; prospective borrowers, ceilings on commission payments and qualifications and duties of gaming brokers are set up. (Article 75-76)
8. Casino operators are subject to taxation and fees, including a gaming industry fee, casino tax and operating license fee, to raise government revenues to fund improvements in outlying islands' tourism, economic development and infrastructure. (Article 77-79)
9. Casino owners are required to submit a portion of their revenues for charitable use and donate another portion to a problem gambling prevention foundation to mitigate the effects created by such establishments. (Article 80-82)
10. Casino businesses are subject to the regulations stipulated in the Money Laundering Control Act and shall assume duty of confidentiality; casino winnings are tax-free for the first 20 years following the establishment of casinos. (Articles 109-114)
The Ministry of Transportation and Communications (MOTC) stated that the Executive Yuan assigned it to take charge of planning and promoting a gaming law following the March 2009 amendment of Article 10-2 of the Offshore Islands Development Act to legalize gaming business on Taiwan's offshore islands. The MOTC immediately commissioned a team of experts to consult the gaming policies of progressive jurisdictions worldwide such as the American states of Nevada and New Jersey, the United Kingdom, Singapore, Australia and Macau.
The ministry also conducted briefings on the outlying islands and seminars with international scholars and experts to gather suggestions. Following several meetings for discussion and consultation, it drafted the Tourist Casino Management Act. The act's 114 articles are organized into seven chapters: Legislative Purpose and General Principles; Establishment, Revocation and Cancellation of Tourist Gaming Industries; Tourist Gaming Industry Operation and Management; Tourist Gaming Industry Taxes; Public Management and Prevention of Problem Gambling; and Penalties and Supplementary Provisions.
In order to ensure sound operation of the tourist gaming industry, its attraction of large-scale investment to turn islands into international resorts and the mitigation of its negative side effects through proper regulation and management, this Act establishes a high degree of supervision, concrete policing rights and dedicated supervisory agencies, while providing for the creation of a fund to prevent problem gambling, the MOTC emphasized.
"The systems and regulations are made to address the public's concerns," officials said. "This is a clear declaration that from the very beginning of planning, the government is acting extremely cautiously in order to lower the social risks that could result from allowing gambling."