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Asia OutlookCasinos and Online Gambling

2018

JAPAN

Problem gambling and IR implementation legislation are expected to emerge by mid-2018.

CAMBODIA

Casino licences continue to be issued with an expected increase in Chinese gamblers and investors.

CHINA

Online sales of the state Sports and Welfare Lotteries remain banned, awaiting further regulation.

INDIA

Potential national reform of sports betting.

LAOS/MYANMAR/THAILAND

Potential momentum for casino legalisation in Myanmar.

MALAYSIA

Recent enforcement measures suggest a tougher stance against online gambling in 2018.

MACAU

Uncertainty surrounding the issuance of the next wave of casino concessions.

PHILIPPINES

Since the election of President Rodrigo Duterte in mid-2016, gaming markets and their regulations are undergoing profound change.

SINGAPORE

Continued enforcement against illegal online gambling services expected.

VIETNAM

The first casino to allow local entry is expected to open in Spring 2018.

TAIWAN

No land-based casino prospects expected in 2018.

NEPAL

Cross-border expansion of Nepal-licensed casinos into northern India.

SOUTH KOREA

Integrated resort development continues in Jeju Island and Incheon despite the ongoing ban on Chinese tour groups travelling to South Korea.

ASIA OUTLOOK: CASINOS AND ONLINE GAMBLING 2018 | GAMBLINGCOMPLIANCE.COM 2

CONTENTSThis report looks at upcoming land-based casino and online gambling developments in various jurisdictions across Asia and the Pacific Islands.

In Focus: Philippines 3In Focus: Macau 5In Focus: Japan 7Cambodia 9China 9India 10Laos/Myanmar/Thailand 11Malaysia 11Nepal 12Pacific Islands 12Singapore 13South Korea 13Taiwan 14Vietnam 14

Authors: Catherine Qu, Martin Williams, Delphine Chen, Andrew Gellatly, Benjamin Reedman

Editors: Hannah Frost, Louise Coleman

The information contained within this report is current as of February 26, 2018.

ASIA OUTLOOK: CASINOS AND ONLINE GAMBLING 2018 3

2018 OutlookPhilippine gaming markets and regulation are undergoing profound change as the presidency of Rodrigo Duterte continues to shake up the relationship between government and the gaming industry. On becoming president, Duterte cryptically announced an end to “online gambling”, but the significance of the less reported part of his speech – a complaint about the online sector’s small tax contribution – has become much clearer in the 20 months since. National gaming regulator PAGCOR’s newly obtained oversight of the bulk of the foreign-facing online gambling segment has delivered it a regular and expanding source of revenue to replace the proceeds from soon-to-be-divested, land-based casino operations around the country.

But in doing so, the long-standing criticism of PAGCOR’s dual role of casino operator and regulator can now apply to its role of online regulator and collector of online gaming fees for the Office of the President. The year 2018 will reveal how PAGCOR intends to develop its financial profile and meet Presidential Office demands for revenue despite a cap on online licence numbers, and whether it can simultaneously provide the regulatory heft for online operations that critics found sorely lacking in economic zone online regulator First Cagayan. In this regard, a new operator auditing system due this year is central to PAGCOR’s regulatory credibility. On the risk side, the question is still open as to whether PAGCOR will be any more transparent than First Cagayan in regulatory terms, whether PAGCOR will accommodate operators targeting Chinese customers and whether Duterte’s embrace of Beijing will restrain law enforcement efforts to stamp out illegal activity linked to the Philippines.

Question marks still hang over the tax burden of online operators, however, with a Bureau of Internal Revenue claim for a 5 percent franchise tax independent of PAGCOR’s fee structure yet to be confirmed.

First Cagayan itself has retreated to its economic zone in the far north of the Philippines with several dozen online licensees in the hope that new on-the-ground infrastructure and investment can salvage something of the company’s former key role in the online segment. Millions of dollars are being spent to boost Cagayan Province’s international appeal and to retain its appeal as a hub for online licensees; this year will offer milestones and pitfalls for gauging how successful this will be. The performance of a touted cryptocurrency option in Cagayan will be one of them.

The net loss of licensee numbers following the PAGCOR takeover of regulatory territory in Manila also reflects the increasing expense of setting up shop in Makati, the traditional base for online gaming studio operators and support services. Operators and allied businesses unwilling to sign up

IN FOCUS:

|Philippines

Regulatory status of casinos: PAGCOR is the entity which licenses casinos in the Philippines, as well as operating casinos directly. Three Philippine economic zones and freeports can also license tourism-related activities such as casinos — these are: the Cagayan Economic Zone Authority; the Aurora Pacific Economic Zone and Freeport Authority; and the Authority of the Freeport Area of Bataan.

Status of online gambling: Offshore-facing online gambling is regulated.


with PAGCOR, or those who missed out because of PAGCOR’s licence cap, have migrated various operations to Cambodia and even Taiwan, or else moved underground, trends that should crystallise this year as their business models in these countries are put to the test.

The Philippine land-based casino market continues to grow significantly, thanks in part to warming ties between the Philippines and China. Major casino operators at Entertainment City in Manila have also been among the least affected by regulatory volatility, other than changes to anti-money laundering protocols and the need to improve security in the wake of the Resorts World Manila tragedy and a stubborn Islamic State-linked insurgency that took over the city of Marawi in southern Mindanao.

Of potentially more concern for the four casinos in Entertainment City is the expansion of integrated resort-style facilities in other parts of the Philippines. A recent moratorium on new casino licences served only to underline the rush by a series of major Philippine and foreign companies to invest in confirmed or potential higher-tier properties in Manila, Cebu, Clark Freeport, Boracay and elsewhere. The more protectionist sentiment toward Entertainment City licensees (three of four have significant foreign investment) in previous administrations appears to have given way to a more market-driven model favouring mostly Philippine moguls. The divestment of PAGCOR-operated casinos – and who will next operate them – is a lesser issue, given that most of the casinos are small and that the properties containing them are of lesser quality.

Duterte’s volatile influence on gaming regulation has also affected the Philippines’ domestic markets for e-games, e-bingo and lotteries, although these segments are likely to stabilise this year as PAGCOR tightens control of e-games and e-bingo shops and as new management at the Philippine Charity Sweepstakes Office addresses board tensions and accounts for criminal infiltration of Small Town Lottery networks.

PLAYTECH: REVENUE FROM PHILIPPINES LICENSEES (€M) - 2012 TO 2017

Revenue (€m)

Share of total (%)

300 50

270 45

240 40

210 35

180 30

150 25

120 20

90 15

60 10

30 5

0 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 0

Sources: Company data

Revenue from Philippines licensees

Philippine licensee revenue as a percentage of total gaming revenue


2018 OutlookUncertainty surrounding the next wave of casino concessions is likely to be the dominant talking point this year for the world’s biggest casino market. Previous years have focused on a damaging market contraction engineered by Macau and Beijing officials and the market’s recovery, the shrinking and consolidation of the junket segment, uneven labour relations, the cap on growth of gaming table inventory and the form and impact of a gaming area smoking ban, for example.

But overshadowing all of this today is the silence of the Macau government, two years out, on how it will launch a new casino concession tender, how many concessions will be allowed and how gaming law will be amended – including any changes to an already lucrative tax rate of around 40 percent.

Instead, the government’s interim response has been to move from a mid-term review coordinated by academic Davis Fong to a new dual university review supervised by Professor Fong in his new capacity as lawmaker. Those results will be released in a few months, but it is unclear what, if any, impact they will have on either government policy or its timetable for a transition to the next era. This assumes that Chief Executive Fernando Chui will not leave the problem to his successor by extending the terms of the current crop of licences, as the law allows.

Also hanging over the concession tender or extension process is the role of Beijing. Chinese government officials have avoided comment on gaming policy matters that are the de jure territory of the Macau executive.

IN FOCUS:

|Macau

Regulatory status of casinos: Regulated with a licensing system.

Status of online gambling: Online gambling can be understood under the definition of interactive games (Article 2(4), Law no. 16/2001). It would be necessary, therefore, for an operator to obtain a concession to offer this type of game in Macau. However, the government has not approved licensing procedures, and no specific regulation has been issued in relation to online gambling.

MACAU: ANNUAL GAMING REVENUES (MOPBN) - 2006 TO 2017

Total sales (MOPbn)

YoY growth

400 +75%

350 +60%

300 +45%

250 +30%

200 +15%

150 0

100 -15%

50 -30%

0 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 -45%

Sources: Gaming Inspection and Coordination Bureau

GGR YoY growth


However, political developments in mainland China such as the growing power of President Xi Jinping, Liaison Office changes in Hong Kong and Macau, retreating scrutiny of Macau’s opaque gaming regulator by the media, crackdowns on visas, ATMs and UnionPay cash card use, and incidental evidence of junket networking and heightened compliance together point to Beijing tightening its grip on Macau’s governance of the sector.

The Macau government’s strategy for casinos remains firmly embedded within a policy of non-gaming diversification and the development of Macau as an international hub for tourism and leisure. But the inability of the government to consistently qualify and quantify these criteria means that operators cannot base concession retention strategies on openly available information. Equally, the government has yet to offer meaningful detail on what will happen to operators that lose their licences, a scenario made more complex by land concessions that extend well beyond the expiry dates of gaming concessions.

Frustration over this state of affairs has already publicly spilled over among “satellite casino” operators, which is potentially the most vulnerable group given the long-overlooked legal limbo in which they operate. This frustration is likely to appear more often this year as operators seek assurances that they remain in the hunt. More generally, operators will likely attempt to expand private communications with officials to make sense of what is coming, even as the probability of Beijing influencing, vetting or simply selecting the next group of concessionaires grows.

2018 is also likely to see the opening of the Hong Kong-Macau-Zhuhai Bridge, which operators are hoping will boost parts of their business, particularly MICE revenue, as Macau becomes a more easily accessible alternative for passengers arriving at Hong Kong International Airport. However, the limitations of the bridge – such as access and volume restrictions – will become clearer as opening day nears. Certainly, the impact of the bridge on gaming revenue will likely turn out to be negligible compared with ramping mainland Chinese business at Cotai’s three newest integrated resorts – MGM Cotai, The Parisian and Wynn Palace.

SELECTED JURISDICTIONS: VIP BACCARAT REVENUE (CNYBN) - 2014 TO 2017

VIP GGR (CNYbn)

20 250

16 200

12 150

8 100

4 50

0 Y/E June ‘14 Y/E June ‘15 Y/E June ‘16 Y/E June ‘17 0

Singapore Macau Las Vegas Oceania

Philippines Saipan

* Macau data corresponds to 2nd Y-axis and excludes premium mass** Revenue adjusted using constant exchange rates from 30/06/2017

Sources: GCRS estimates, company data, Macau DICJ, Nevada Gambling Control Board, PAGCOR


2018 OutlookAfter decades of prohibition, casinos are close to becoming regulated in the world’s third largest economy, spurred by the perceived tourism and job creation benefits of integrated resorts. But with Japanese casinos set to be among the most profitable globally, concerns remain about how best to ensure responsible gambling among the wealthy domestic population, and Japan’s casino regulations are likely to be some of the world’s strictest.

Recognition of the extent of gambling addiction in Japan has intensified following the passage of enabling legislation for integrated resorts in December 2016 and attention is now firmly focused on the progress of the implementation bill, one of two pieces of key legislation that need to pass before the casino projects can progress and requests for concept (RFCs) can begin.

The second, a member’s bill, known as the “gambling addiction countermeasures bill”, lays out responsible gambling requirements for future casino operators. Due to political pressures, it is likely that the law concerning problem gambling countermeasures will need to be agreed and passed before the IR implementation bill can be considered.

Still, the pro-IR prime minister, Shinzo Abe, intends to prioritise the bills during the current Diet session, which will end on June 20, 2018.

In recent weeks, details of the upcoming legislation have emerged, few of them good news for would-be operators.

The bill will place a cap on the number of casino licences and locations – perhaps just three or four sites, with Yokohama, Osaka and Tomakomai, in Hokkaido, currently believed to be the front-running candidates.

As part of its efforts to limit problem gambling by Japanese citizens, the government is proposing to limit casino visits by local residents to a maximum of three a week, or ten a month. Japanese nationals may also be required to register for casino entry using their “My Number” card – a new ID system linked to tax and social security which has so far only been issued to about 10 percent of the population.

Borrowing from the example of Singapore, Japanese nationals and resident foreign nationals will pay a casino entry fee, currently recommended at ¥2,000 per person.

IN FOCUS:

| Japan

Regulatory status of casinos: In a pre-regulatory phase pending the passage of the second of two casino bills.

Status of online gambling: The organisation of online gambling may be punished if the elements of Articles 186(2) or 187 of the Penal Code of Japan are established, and deemed to be committed within Japan. According to a government response to questions posed by a member of parliament on the matter in 2014, this will be determined on a “case by case basis” based on the evidence collected by the investigating authorities.

The IR enabling bill (December 2016) calls for a review of progress after five years, at which point the restricted status of online gambling may be reconsidered.

Publicly administered pari-mutuel betting is offered online and the Japanese government has promised to make most lottery products available for online sale by October 2018.


There will be bans on ATMs on the casino floor and the use of credit cards to buy gaming chips. VIP junkets will likely be banned or tightly controlled, and the bill is expected to introduce the controversial idea of third-party exclusion by relatives and family members.

For would-be operators, there will also be limitations on casino floor space, with gambling areas to be restricted to 3 percent or less of the total resort, up to a maximum of 15,000 square metres – approximately the size of the Mandalay Bay casino in Las Vegas or the Marina Bay Sands in Singapore.

Two plans have so far been put forward for the casino tax, both relatively harsh by Asian casino-resort standards.

(1) Flat 30 percent tax on GGR

(2) Progressive tax

• Tax on GGR up to ¥150bn: 30 percent• Tax on GGR of ¥150bn to ¥300bn: 40 percent• Tax on GGR in excess of ¥300bn: 50 percent

These revenues will be used for the public benefit, including the implementation of gambling addiction countermeasures, and casino excise tax revenue will be split equally between the national and local government where the IR is situated.

The IR implementation bill will also set out stringent requirements for would-be casino operators to pay for their own background checks. The aim is to deter any unqualified applicants, including front companies for criminal gangs, from acquiring a licence.

Still, the rewards for success are considerable, with forecasts valuing the market at anywhere between $15bn and $30bn in annual revenues following a regional rollout of casino locations.

JAPAN VS SELECTED OTHERS: VISITATION FROM MAINLAND CHINA (M)Visitor arrivals from China (m)

9

8

7

6

5

4

3

2

1

0 2010 2011 2012 2013 2014 2015 2016 2017

Sources: National tourism boards

South Korea Japan Singapore Malaysia Philippines


2018 Outlook

Chinese investment in Sihanoukville has increased and both countries agreed to strengthen their economic bonds for the upcoming years. In 2017, 79 casino licences were issued, predominantly to Chinese investors. Currently, access to casinos is restricted to foreigners and, although previously considered, no new measures have been adopted to allow local players to gamble in casinos.

As for online gambling, since 2015, the government has been granting online licences to operators licensed to run land-based casinos in exchange for a payment of $10,000 a year. As such, Asia Live Tech, an operator currently licensed for land-based casinos, operates an online casino platform accepting payments in cryptocurrencies.

|Cambodia

Regulatory status of casinos: Regulated with a licensing system. NagaCorp holds a monopoly within a 200km radius of Phnom Penh until 2035.

Status of online gambling: Prohibited. However, an online casino licence may be granted to those licensed to operate land-based casinos.

2018 Outlook

The Welfare Lottery and Sports Lottery both performed well in 2017, although the Sports Lottery is set to outpace the traditionally dominant Welfare Lottery in 2018. In 2017, overall lottery revenue increased by 8.1 percent, although sports betting generated the highest growth by segment, with an increase of 21.4 percent. Sports betting activity is expected to surge even higher with the upcoming 2018 FIFA World Cup.

The sale of online lottery products remains banned, awaiting the implementation of an online platform to coordinate and monitor online lottery sales nationwide. However, there are growing concerns that this ban is driving online sales to illegal markets, which have now also been voiced

in official Chinese media.

On February 2, Bloomberg reported that Chinese government agencies were considering allowing online gaming, a lottery or sports betting and eventually a casino in the province of Hainan, although no sources or details were provided.

|China

Regulatory status of casinos: Prohibited.

Status of online gambling: Prohibited.

CHINA LOTTERY SALES BY SEGMENT (¥BN) - 2008 TO 2017

Lottery sales (¥bn)250

200

150

100

50

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sources: China Ministry of Finance

Sports Lottery Welfare Lottery


| India

Regulatory status of casinos: Regulated with a licensing system only in Goa and Sikkim states and the union territory of Daman and Diu.

Status of online gambling: Online skilled/casino gaming is only legal in Sikkim and Nagaland states, where it is regulated with a licensing system.

2018 Outlook

The vastness of its market and a powerful interest in cricket betting have long flagged India as a future giant among gaming jurisdictions. But legislative reticence, social opposition and enthusiastic enforcement activity continue to hamper momentum for change, producing a situation in which industry has sought an ally in the more secular court environment to trigger reform, in part thanks to constitutional protection for skilled gaming.

Hopes for national reform on the sports betting front – the most likely segment to liberalise in the near future – are now placed in a Law Commission study being compiled by Justice BS Chauhan. However, even this reformist document is, at last report, looking to mitigate the social damage of massive illegal betting activity by proposing a highly restrictive regulatory scheme.

In the meantime, the push for the liberalisation of skilled gaming with stakes will continue to be an ad-hoc affair, with rummy clubs and poker tournaments leading the way and challenging police raids and indifferent legislatures across many of India’s 36 states and union territories.

Some state governments and legislatures, most recently Telangana, are taking a direct oppositional role by banning online gambling altogether, despite Supreme Court backing for skilled games. However, until such disputes prompt a decisive and up-to-date Supreme Court ruling, 2018 is likely to remain a patchwork of setbacks and cautious progress for state-based gaming interests.

Online poker and rummy continue to flourish separately even without an explicit legal mandate, but remain vulnerable to scrutiny over payment processing, foreign direct investment and technological input, and point of consumption legality.

Lastly, land-based casinos remain restricted to the peripheral jurisdictions of Goa and Sikkim, with Sikkim and Nagaland also allowing online gaming, although Goa’s fellow former Portuguese territory Daman and Diu may see a casino open at Delta Corp’s Deltin resort in the near future. While Goa’s government has pledged to shut down the state’s famed floating casinos, there is now a government-backed proposition to relocate all casino gaming to an entertainment zone abutting Goa’s second international airport now under construction, potentially creating a cluster effect akin to Las Vegas and Macau.


2018 Outlook

On January 30, 2018, the US Treasury Department published a statement alleging that the Kings Romans casino in Laos is one of the “primary entities” through which the “Zhao Wei Transnational Criminal Organization” network operates. The Zhao Wei network is allegedly linked to narcotics trade, wildlife abuse, human trafficking, money laundering and other criminal activities. The US Treasury Department has blacklisted and frozen the assets of Zhao Wei, the casino’s co-owner, and another three individuals and three entities alleged to be involved in the network.

In Myanmar, on February 9, 2018, Ohn Maung, hotels and tourism minister, announced that the government would consider allowing casinos in island resorts once the current gambling law is revised, though no specific timeframe was provided. Despite this momentum, it is worth noting that past attempts to legalise casinos in mainstream tourist areas had failed.

| Laos/ |Myanmar | Thailand

2018 Outlook

Strengthened enforcement actions in late 2017 suggest that tighter control of illegal online gambling could be expected in 2018. In October 2017, it was reported that deputy prime minister and home minister Ahmad Zaid Hamidi stated to local press that the government has been discussing either amending the Common Gaming Houses Act 1953 or introducing new gambling legislation, to more effectively target illegal online gambling. In November 2017, Playtech issued a serious profit warning citing its Malaysian business as the main reason. Sources within the local gambling industry have stated that the profit warning is a result of the shut-down of the 200 or so electronic game parlours in Malaysia. These parlours host about 25 to 50 gaming machines each, totalling between 5,000 and 10,000 machines.

|Malaysia

Regulatory status of casinos: Regulated with a licensing system. Currently, only one casino licence has been granted. There is a complete ban on gambling for the Muslim population.

Status of online gambling: Prohibited by the general prohibition of gambling under the Common Gaming Houses Act 1953. Some have interpreted online gambling to fall outside of the gambling offences established under the act. However, in practice the government has persistently cracked down on local online gambling.

Regulatory status of casinos: Casinos are generally prohibited in all three countries. However, in 2007 the Laos government granted Kings Romans Group a 99-year lease, which includes the permission to develop and operate casinos in the Golden Triangle Specific Economic Zone (GT SEZ) of Laos, located between Thailand and Myanmar.

Status of online gambling: Online gambling is prohibited.


2018 Outlook

ASX-listed Silver Heritage Group commenced gaming operations at its Nepal-licensed casino in Tiger Palace Resort on December 28, 2017. The resort opened despite a troubled history, with the latest complication in February 2018 resulting in the termination of a consultancy agreement with a local partner that had accused the company earlier of hiring illegal foreign workers. The integrated resort is located on the border of Nepal and India, near the state of Uttar Pradesh, and primarily targets visitors from India, as well as Nepal, Bangladesh, China, Myanmar and Sri Lanka. The Silver Heritage venture will test the prospects of cross-border expansion from Nepal into populous regions where casino legalisation is unlikely, particularly the northern states of India.

|Nepal



2018 Outlook

Until a high-VIP-volume casino operation emerged in Saipan, the main island of the US-controlled Northern Marianas, the tiny island nations of the Pacific rarely featured on the radar of analysts or industry experts. Imperial Pacific’s operation in Saipan has changed that, and 2018 will go some way toward determining whether the casino and unfinished hotel will be sustainable and successful, or a liability to the long-term economic and social welfare of its island hosts. There have been controversies over unpaid and mistreated Chinese labour, delays to construction and international media accusations of graft and compliance failure. Furthermore, the mostly Chinese-facing operation has already been indirectly probed by the FBI and is likely to be closely watched by US federal agencies.

Saipan’s experience reflects the volatility and limitations of sparse gaming jurisdictions in the region. Vanuatu, which is on a Financial Action Task Force watchlist, established a highly opaque online gaming hub most known for hosting Hong Kong-listed Amax International, which is controlled by former triad boss Ng Man Sun. Samoa has explored similar territory. Meanwhile, Fiji has rebooted an attempt to open a casino after a failed deal with a US Indian tribe. Aside from Saipan, all indicators are that the island nations will remain on the periphery and attract only limited and grey market interest.

|Pacific Islands

Regulatory status of casinos: Varied.

Status of online gambling: Varied.


2018 Outlook

The current duopoly casino licences held by Marina Bay Sands and Resorts World Sentosa were both renewed in 2016, and are set to expire in 2019.

Online gambling in Singapore is all but restricted to two closely monitored, government-controlled monopolies – Singapore Pools and the Singapore Turf Club – and problem gambling considerations are likely to keep growth of this segment in check. There have been strengthened enforcement measures against illegal operations by local police. On January 29, 2018, a police news release announced that police had arrested four individuals for the offence of gambling in public. A further 18 individuals were arrested for gambling-related offences on February 12, 2018. According to the media reports, the police will continue to take tougher enforcement measures and “spare no effort to clamp down on” illegal gambling and related criminal activities. Continued enforcement action against illegal online gambling services can be expected in 2018.

|Singapore

Regulatory status of casinos: Regulated with a licensing system. The Casino Control Act provides that only two casino licences can be in effect at any given time.

Status of online gambling: Prohibited. It is possible to apply for exemptions, granted under strict criteria, from the Ministry of Home Affairs under the Remote Gambling Act 2014. However, to date, the ministry has only approved the applications of Singapore Pools and Singapore Turf Club.

2018 Outlook

The development of integrated resorts (IRs) on Jeju Island and in Incheon will continue during 2018. Landing International’s foreigner-only casino at Jeju Shinhwa World opened on February 25. In Incheon, Paradise Co. opened the first IR in the area in April 2017, whereas Mohegan Sun Group is planning to start construction of an multi-billion dollar IR at Incheon International Airport this year. In October 2017, Caesars International announced its plans to begin construction on an IR in Incheon during 2020, having received preliminary governmental approval.

Meanwhile, the gambling and tourism industries continue to suffer as the Chinese government remains firm on its ban on Chinese tour groups travelling to South Korea. The ban was enforced in March 2017 due to political tensions. Indications that the restrictions would be eased in November 2017 were reversed in December, suggesting the full ban remains in force.

|South Korea


Status of online gambling: Regulated only for state-run betting services and a monopoly lottery operator.


2018 Outlook

A referendum to vote on casino development on the offshore island of Kinmen was rejected by an overwhelming majority of the population in October 2017. This vote confirms the unlikelihood of casino development in Taiwan in the next few years, particularly as the government has abandoned casino control legislation amid negligible operator interest and public indifference, and this is likely to remain the case until at least the opening of Japan’s IRs.

| Taiwan

Regulatory status of casinos: Prohibited generally. The Offshore Islands Development Act allows casinos located in offshore territories of Taiwan provided there is a majority vote for approval.

Status of online gambling: Online gambling is only authorised through Taiwan Sports Lottery, which is responsible for the organisation of sports betting and lottery games.

2018 Outlook

New casino regulations adopted through Decree No. 03/2017/ND-CP came into force from March 15, 2017. According to this decree, local residents are authorised to gamble in casinos for a three-year trial period from the date the first casino operator successfully obtains its licence under the new decree. Since the decree has been in force, two operators have been granted licences to open casinos: one in Phu Quoc, which is expected to open in Spring 2018; and one in Quang Ninh, although no official opening date has been provided to date.

Casinos will be subject to greater scrutiny, as a ministry circular on tax revenue collection was signed into effect in December 2017. These regulations will allow the regional tax authority to directly monitor the activities of casino floors through video surveillance and data reporting processes.

|Vietnam



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asia outlook - gamblingcompliance...asia outlook: casinos and online gambling 2018 4 with pagcor, or...

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