WEEKLY FEATURE: Taiwan County to Vote Again on Casinos?

Residents of the Taiwanese island of Penghu (Rainbow Bridge at l.) may vote again on legalizing casinos next year. Penghu defeated a gaming referendum four years ago, but may get another chance. A government committee has approved a proposal that could lead to a gaming referendum in 2016, most likely in the first half of the year.

But casinos could incur wrath of China

Residents of Penghu, an outlying Taiwanese island, may take to the polls to decide on legal casinos next year, according to multiple reports. The Macau Business Daily cited Taiwan’s Central News Agency in reporting that the local government has approved a referendum to be held between January and May 2016. The timeframe is pivotal: the presidential election takes place January 16, and the new president will be inaugurated May 20.

The referendum must first be OK’d by Taiwan’s cabinet. If it’s approved, pro-casino groups would have to collect signatures amounting to 5 percent of more than 82,200 eligible voters in Penghu, or about 4,100 petitioners. At that point, the referendum could go forward.

According to the Business Daily, gaming was once banned on Taiwan’s outlying islands, including Kinmen, Matsu and Penghu. That ban was lifted in January 2009. The people of Penghu first voted on casinos in September 2009, but shot down the measure with 56.4 percent of voters against the ballot question. Their neighbors on Matsu held a referendum in July 2012 and approved casinos as a way to boost tourism. But the Taiwan parliament has not yet drafted a regulatory structure for casinos, and the islanders continue to wait.

Legislators have reason to hesitate, according to Taiwan Today. The publication reports that Mainland China would be displeased if the islands approve casinos that attract Chinese gamblers. Visiting Kinmen Island in late May, Zhang Zhijun, director of China’s Taiwan Affairs Office, said as much, telling his hosts that China would sever transport and trade lines with Taiwan’s islands if casinos are legalized in the islands.

Fan Liqing, of Taiwan’s Affairs Office, noted back in 2013 that tourism agencies should be wary of organizing gaming-related activities for their customers, because they would risk breaching the cross-straits tourism cooperation agreement.