02-October-2009

Friday, Taiwan citizens rejected a government plan to allow casino development in the Penghu archipelago. In a binding referendum, Penghu County residents voted down the move, 17,359 votes to 13,397.

The referendum would have allowed developers AMZ Holdings PLC and the Penghu Bay Development Co. to build gambling resorts on the islands of Penghu, Quemoy and Matsu. AMZ purchased 11 hectares of land in the archipelago after Taiwan’s national legislature legalized offshore gambling in January, pending last week’s referendum..

Supporters of the plan hoped casino gambling would help boost Taiwan’s economy by luring tourists away from Macau. Opponents cited concerns over the possibility of gambling-related crime and fears that the casinos’ remote locations would undermine their appeal to tourists as reasons for rejecting it.

"We are very proud. This is a victory for all Penghu people," Lin Chang-xing, leader of the Casino Opposition Alliance, told the American Free Press.

News of the failed referendum caused a sharp decline in several gambling-related stocks on the Taiwan Stock Exchange Monday. Stocks in slot-machine software maker Astro Corp. fell 7 percent to NT$73.40, while stocks in terminal maker Firich Enterprises fell 6.9 percent to NT$78.10.

Nearly 31,000 of Penghu County's 73,651 eligible voters participated in the referendum. The soonest lawmakers can repeat the referendum is 2012.

By: Phill Provance
phill.provance@acehoyle.com

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