- 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.
Source: AmeSecurities
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