Taiwan, officially known as the Republic of China, is an Eastern Asian country that many believe has great potential for a booming casino industry. That said, currently, this sector is severely restricted by the local government, with many wondering if there are any signs of implementing more lax gambling laws any time soon.
At the moment of writing this article, Taiwan still has not decriminalized gambling, with the country having a long history of gambling restrictions. Despite having forbidden gambling for almost a century, Taiwan was showing some signs of a possible change in the law and reintroduction of a casino industry in the country.
In 2009, suggestions for amendments in the law gave a glimmer of hope for land-based casinos being launched within the country. That said, this piece of legislation has not still been implemented as Taiwanese lawmakers are still on the fence about such changes.
With neighboring China constantly trying to influence the laws in Taiwan, some pressure was also applied by China when it came to the issue of legalizing gambling in Taiwan. What is more, locals seem to be against legalizing brick-and-mortar casinos, with very few people showing a positive attitude towards such changes.
History of Gambling in Taiwan
According to the laws in Taiwan, all forms of gambling are illegal. The only exception is the state lottery which does not fall under the category of “gambling” according to the Taiwanese legislative framework. Despite the current harsh laws banning gambling, that is not to say that this form of entertainment was not present in Taiwan’s history.
Several gambling forms were quite popular on the island of Taiwan in the 17th, 18th, and 19th centuries, during the ruling of the Qing Dynasty. At that time, the flower match game was extremely popular, with many citizens getting into debts they were unable to pay.
With the issue of gambling addiction becoming more serious, the authorities in Taiwan started introducing various restrictions, one of which was an unsuccessful attempt to ban gambling activities in 1897. During the Japanese colonization, illegal gambling continued to rule in Taiwan mainly due to Japanese organized crime groups.
In 1935, the Criminal Code of the Republic of China was enacted, outlawing any form of gambling. The only gambling-type of games players were allowed to participate in included mahjong at Chinese New Year celebrations and card games that offer non-currency prizes.
While in 1951 Taiwan legalized lottery games, other forms of gambling remained illegal. Several politicians expressed their disapproval of the harsh laws, claiming that they will only help the increased number of illegal casinos and underground gambling venues. Despite several attempts to introduce several amendments to the current legislation, no changes have been introduced yet, with all forms of gambling still being illegal in Taiwan.
Gambling Regulations
Currently, gambling in Taiwan is regulated by the Criminal Code of the Republic of China which was enacted in 1935. Under this law, both participating in and providing venues for gambling activities are deemed illegal. In addition to land-based gambling, participating in online gambling is also illegal, with Taiwanese players having no licensed online casino operators to rely on.
The only exception to the gambling ban is the lottery which was legalized in 1951. The reason why lottery games are not considered illegal in Taiwan is that they do not fall under the category of gambling according to Taiwanese laws.
Legal Status of Gambling and Applicable Penalties
Lottery in Taiwan
Sports Betting in Taiwan
Online Gambling
Legal Status of Gambling and Applicable Penalties
According to Article 266 of the Criminal Code, any individual who has participated in gambling activities in a public place will be penalized by paying a fine of no more than NT$30,000. The only exception is if individuals play for items that offer temporary amusement.
Any apparatus found at gambling facilities, operating gambling tables, or venues for exchanging gambling tokens are confiscated. If an individual is found to offer a place conducting gambling activities will serve a jail time of not more than three years. There might also be an additional penalty of a fine of not more than NT$90,000.
While the lottery has been legalized in Taiwan, those who conduct a prize-giving savings business or offer lottery tickets without having the proper permit for this type of activity will serve a jail time of not more than a year or may serve short-term imprisonment. It is also possible to receive an additional penalty of not more than NT$90,000.
Agents who have the role of mediators in prize-giving savings businesses or unauthorized sale of lottery tickets will also face a penalty of imprisonment of not more than six months or a short-term jail time. They may also pay a fine of not more than NT$30,000 in lieu or in addition to the imprisonment penalty.
Lottery in Taiwan
The lottery has a long history in Taiwan, going through four different stages of legalization until it reached its current legal status. The first form of lottery that was available in Taiwan was the Patriotism Lottery which was established in 1950. The main reason why the government allowed the lottery was to introduce a new source of income to establish infrastructures in the region.
During that period, the money that was earned through the Patriotism Lottery was used to fund the provincial reconstruction in Taiwan. In 1985, the Patriotism Lottery reached its highest peak and was sold for NT$11.5 billion. Unfortunately, due to the extremely high levels of illegal gambling that was happening, the lottery was shut down in 1987.
Two years after the Patriotism Lottery was discontinued, the government of Taipei City authorized the Bank of Taipei to launch the Social Welfare Compassion Lottery. Due to the extremely high interest from the public, the newly-launched lottery managed to sell six million tickets in just three days. As the government was worried that the huge interest in the lottery could push people to gambling addiction, the Social Welfare Compassion Lottery was discontinued only three months after it was launched.
In 1999, the government of Kaohsiung City decided to launch the Compassion Lottery which was offering scratch-card tickets. While the public was thrilled by the new lottery-type of games, the central government did not approve of the Compassion Lottery and it was forced to close. However, as the country was devastated by the earthquake in 1999, Taiwan was in need of funds to recover from the consequences of the natural disaster. This was the reason why the government decided to bring back lottery games and the Bank of Taiwan was authorized to launch the Public Interest Lottery.
Funds that were earned through the Public Interest Lottery were used to help earthquake victims recover as well as support the reconstruction of buildings that were damaged by the natural disaster. The current Public Welfare Lottery was issued by the Bank of Taipei and is regulated by the Ministry of Finance. Nowadays, money collected through the sale of lottery tickets is used to finance different causes that will help the public.
Sports Betting in Taiwan
While the lottery is the only gambling-like activity that has been legalized in Taiwan, there are also a few forms of sports betting that Taiwanese people can legally enjoy. Under the Sports Lottery Issuance Act, people are allowed to make simple bets on several sports.
Through the Sports Lottery in the country, punters can place wagers on US MLB and NBA matches. Under the Sports Lottery Issuance Act, the Fubon Bank has been given exclusive monopoly rights on sports lottery in Taiwan. The same law defines a sports lottery as any lottery where the winner of a match is determined by the result of a professional or collegiate sporting event.
Online Gambling
Unfortunately, all forms of gambling are currently illegal in Taiwan, which applies to both land-based and online gambling. That said, in recent years, there have been quite a few speculations about whether the Taiwanese government is planning to introduce several amendments to its laws to start regulating online gambling.
If Taiwan decided to follow the current trends that motivated many other jurisdictions to welcome online gambling, there might be some significant changes to the Criminal Code of the country. After the establishment of the Sports Lottery in 2008, Taiwan decided to partially lift the gambling ban by allowing land-based casinos to be launched on the country’s offshore islands. Many believed this may put a start on a properly regulated land-based casino industry which may eventually lead to online gambling as well.
However, while the ban lift was announced in 2009, a brick-and-mortar casino is yet to be established on any of Taiwan’s offshore islands. With no signs of land-based casinos launching in the country, online gambling was also left behind. With no legal options or promises for such, Taiwanese players have no other option but to resort to playing on foreign gaming websites.
While online gambling has not been specifically covered in the Criminal Code, under Article 268 it has been stated that any individual who furnishes a location for gambling or gathers other individuals for the purpose of gambling is breaking the law. This section of the Criminal Code has been found to apply to online gambling, hence the reason it also falls under the category of illegal activities in Taiwan.
While some criticize how accurate the current law is when it comes to regulating online gambling, those who join offshore gaming sites can definitely face some penalties. There have been cases of local authorities arresting and prosecuting individuals who have participated in domestic and offshore online gaming operations.
Closing Thoughts
As of now, gambling in Taiwan remains illegal under the Taiwanese Criminal Code. Both land-based and online gambling are not permitted on the territory of the country, with both participants and those who offer such activities facing penalties.
While casinos are still not legalized in Taiwan, lottery games have been established several times throughout the history of the country. Nowadays, lottery games are commissioned by the Ministry of Finance and the money collected through the lottery is used for funding different public matters. Sports lottery has also been legalized, allowing Taiwanese bettors to place wagers on US MLB and NBA games.
Outside the lottery and the limited options of sports lottery, Taiwan has not legalized any other form of gambling. Although there have been suggestions for amendments in the law, and even the ban on land-based casinos was lifted in 2009, no casinos were actually allowed to launch on the offshore islands of Taiwan. Online gambling is also out of the question, with local authorities imposing penalties on those caught illegally gambling online.