Matsu casino could divert Fujian gamblers
The election of anti-gaming candidate Tsai Ing-Wen to the Taiwan presidency could indefinitely suspend any plans to bring gaming to the territory.
According to a report from Union Gaming cited in the Asia Gaming Brief, Tsai has actively opposed gaming in the past, and in 2009 urged fellow Democratic Progressive Party legislators to vote against a bill to allow gaming referendums.
It didn’t work. That same year, Taiwan lifted a 15-year ban on gaming on the islands of Kinmen, Matsu and Penghu, the Macau Business Daily reports. In 2012, referendums on gaming took place on Penghu and Matsu, and the latter approved the introduction of casinos on the island.
However, a bill is required to move the plan forward, and the Tsai government is unlikely to put casino legislation on the front burner. Yung-mau Chao, director of the Centre for Public Policy and Law at National Taiwan University, told the Daily, “Before any decision is taken, the new cabinet will have to be formed. Then the new cabinet will have to discuss its priorities, which are expected to be other issues closer to the DPP party, rather than any gaming legislation,” he said. “Gaming will not be among the priorities of the new government.”
Grant Govertsen of Union Gaming Asia Securities said the investment firm remains “somewhat pessimistic about the chances of a gaming bill with the DPP in power.”
Taiwan’s loss is Macau’s gain, as the MSAR will not face further competition at least in the next few years. But if gaming becomes a reality over time, “The impact on the Macau industry will not be significant,” said Professor Davis Fong Ka Chio of the University of Macau. “In terms of transportation, Macau does not have the barriers that the visitors to these islands would face. Macau is a more attractive destination than the islands. These islands still have to develop the required infrastructure to receive visitors, while Gongbei Port is just a five-minute walk away from Macau.”
Union Gaming agreed, saying in its report, “It is unlikely that Taiwanese customers to Macau will redirect a significant number of visitors to Matsu (or Kinmen or Penghu). This is largely a function of access. Currently, the Matsu islands are served by two small airports (Beigan and Nangan) that offer only a handful of small turboprop flights daily to Taipei.”
However, Taiwan casinos could attract residents of Fuji who now patronize Macau, the firm said. “Offering convenience gambling is no small thing and we think the end result of a casino in Matsu would be to significantly grow the gaming revenues being generated by Fujian residents,” said the Union report.
But there may be little rush among Macau’s Big 6 concessionaires to consider moving into Taiwan, as the Mainland Chinese government is likely to frown on such an expansion.
