Taiwan's Gambling Island: History, Referendum & Casino Potential on the Outermost Island

Bittime - The term "Gambling Islands" refers to offshore islands of Taiwan that have been proposed or considered as potential locations for casino development if laws and local permits allow. 

Taiwan generally prohibits gambling, but amendments to laws and local referendums since 2009 have opened opportunities for islands such as Penghu, Kinmen, and Matsu. 

This article outlines the history, referendum status, and future potential of the Gambling Islands in Taiwan.

History & Legal Basis

• 2009: Taiwan amended the Offshore Islands Development Act (OIDA) to allow outer islands to develop integrated tourism facilities including casinos, provided local referendums approve them.
  
   
• Islands covered by this amendment include Penghu, Kinmen, Matsu, as well as smaller isles like Green Island and Orchid Island.
  
   
• Local referendums are a legal precondition: residents must first approve before casino construction is permitted.

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Islands Under Consideration

Penghu

This island is the most frequently mentioned in casino plans. However, the 2009 and 2016 referendums showed strong opposition from residents.

Nevertheless, local investors have purchased land near resort areas in anticipation should policy change.

Kinmen

Kinmen also held a referendum on casinos. Residents voted to reject the idea, so no physical casino development has taken place there to date.

Matsu

Unlike Penghu and Kinmen, Matsu once held a referendum that decided in favor of casino construction. However, realization has not occurred to date.

Referendum Results & Their Impact

Local referendums serve as a democratic tool for offshore island communities to voice whether they agree or disagree with casinos.
For example:

• Penghu 2009: ~56% of residents opposed casino legalization.
   
• Penghu 2016: the rejection rate rose markedly, indicating sustained resistance.
   
• Matsu: majority supported, but regulatory and technical hurdles have prevented project progress.

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Major Obstacles

Although legally possible, the "Gambling Islands" face many hurdles:

1. Repeated referendum results rejecting casinos.
    
2. Limited infrastructure on the outer islands.
    
3. Social, cultural, and moral concerns among local residents.
    
4. Large project costs (investment in hotels, casinos, and oversight).
    
5. Regulation and supervision to prevent misuse.

Latest Developments on Taiwan's Gambling Islands

1. Major Casino Resort Plan in Penghu

Penghu county government officially proposed a NT$60 billion resort casino plan (roughly several hundred million to a few billion USD) in Houliao Bay, Baisha, as part of international tourism development.

The plan includes building an integrated resort complex, entertainment facilities, hotels, and gaming areas. The proposal indicates that despite historical referendum rejections, local authorities still push for new investment efforts.

2. Casino Referendum Approved in Penghu

The Taiwanese government has approved holding a referendum in Penghu regarding casino legalization.

This step signals that the Gambling Islands issue has resurfaced as a matter of local political and development agenda.

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Future Potential

If new referendums are approved and investment proceeds smoothly, these islands could become casino tourism hubs. That could attract foreign investors, strengthen local economies, and boost tourist arrivals.

However, realization heavily depends on local political will and the administrative readiness of the Taiwanese government.

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FAQ

What does “Gambling Islands” mean?

“Gambling Islands” refers to offshore Taiwanese islands (such as Penghu, Kinmen, Matsu) proposed as potential casino locations if local referendums approve.

Are there casinos already built on those islands?

Not yet. Although the law permits it, most local referendums have rejected the idea, so no casinos have been built on those islands so far.

Why do residents reject casinos on the Gambling Islands?

Common reasons include concerns about social impact, environmental damage, and changes to local culture resulting from the presence of gambling.

Has any island ever approved a casino?

Yes, the island of Matsu once approved a casino by referendum. However, construction has not yet materialized there.