- According to news reports, Matsu Islands, which belong to Taiwan, has approved the setting up of a casino. Previously, Penghu Islands had rejected legalisation of casinos on the island.
- In a referendum last Saturday, voters on Matsu Island approved legalised gambling by 57% to 43%.
- The next step would be for Taiwanese government agencies to decide on the size of the casinos and how many casino permits to issue.
- According to news reports, government officials in Taiwan could be issuing one or two permits.
- A front-runner is said to be William Weidner, a former Las Vegas Sands Corporation president.
- We view the legalisation of casino in Taiwan positively. We reckon that there would be interest from casino players such as Genting Group.
- However, we are unsure as to which subsidiary in the Genting Group that would be interested in Matsu Islands.
- Currently, Genting Hong Kong Ltd has cruise itineraries to Taiwan and Hong Kong. Genting Singapore is also eyeing opportunities in Asia.
- The attractiveness of Matsu Islands lies in its proximity to China. Matsu Islands is close to the Fujian Province of China. The island is also south of main cities like Hangzhou and Shanghai.
- The only risk is one of regulatory. If there is an influx of Chinese visitors to Matsu Island in the future, there is risk that the Chinese Government may tighten visa requirements to Taiwan.
- In mid-2011, Taiwan allowed mainland Chinese tourists to visit Taiwan on their own, outside of tour groups for the first time.