Taiwan, officially known as the Republic of China, is an East Asian country that many believe has great potential for a thriving casino industry. That said, the sector is currently severely restricted by the local government, and many wonder whether more lenient gambling laws will be adopted in the near future.
At the time of writing, Taiwan still has not decriminalized gambling, and the country has a long history of gambling restrictions. Despite having prohibited gambling for almost a century, Taiwan has shown some signs that the law may change and that a casino industry might be reintroduced.
In 2009, suggested amendments to the law offered a glimmer of hope for launching land-based casinos in the country. However, the legislation has still not been implemented, as Taiwanese lawmakers remain on the fence about such changes.
Neighboring China has continually tried to influence Taiwanese laws and has applied pressure when it comes to legalizing gambling. Moreover, many locals seem to oppose legalizing brick-and-mortar casinos, with very few people expressing support for such changes.
History of Gambling in Taiwan
According to Taiwanese law, all forms of gambling are illegal. The only exception is the state lottery, which does not fall under the category of “gambling” in the Taiwanese legislative framework. Even though gambling is currently banned, the activity has long been part of Taiwan’s history.
Several forms of gambling were popular on the island in the 17th, 18th, and 19th centuries, during the Qing Dynasty’s rule. At that time, the flower match game was extremely popular, and many citizens incurred debts they could not repay.
As gambling addiction became a more serious issue, the authorities in Taiwan introduced various restrictions, including an unsuccessful attempt to ban gambling activities in 1897. During Japanese colonization, illegal gambling remained widespread in Taiwan, largely because of Japanese organized crime groups.
In 1935, the Criminal Code of the Republic of China was enacted, outlawing all forms of gambling. The only games players were allowed to play were mahjong during Chinese New Year celebrations and card games that offered non-monetary prizes.
In 1951, Taiwan legalized lottery games, but other forms of gambling remained illegal. Several politicians criticized the strict laws, claiming they would only contribute to the growing number of illegal casinos and underground gambling venues. Despite multiple attempts to amend the legislation, no changes have been made, and all forms of gambling remain illegal in Taiwan.
Gambling Regulations
Currently, gambling in Taiwan is regulated by the Criminal Code of the Republic of China, enacted in 1935. Under this law, both participating in gambling activities and providing venues for them are illegal. In addition to land-based gambling, participating in online gambling is also illegal, leaving Taiwanese players without licensed online casino operators.
The only exception to the ban is the lottery, which was legalized in 1951. Lottery games are not considered gambling under Taiwanese law.
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 participates in gambling activities in a public place may be fined up to NT$30,000. The only exception is when people play for items intended solely for temporary amusement.
Any apparatus found at gambling facilities, gambling tables, or venues used to exchange gambling tokens is confiscated. If a person provides a place for gambling, they may face imprisonment of up to three years and an additional fine of up to NT$90,000.
Although the lottery is legal in Taiwan, anyone who conducts a prize-giving savings business or offers lottery tickets without the proper permit may be imprisoned for up to one year or receive short-term detention. They can also be fined up to NT$90,000.
Agents who mediate prize-giving savings businesses or the unauthorized sale of lottery tickets face imprisonment of up to six months or short-term detention. They may also pay a fine of up to NT$30,000 instead of or in addition to imprisonment.
Lottery in Taiwan
The lottery has a long history in Taiwan, progressing through four stages of legalization before reaching its current status. The first lottery available in Taiwan was the Patriotism Lottery, established in 1950. The government introduced it to create a new source of revenue for regional infrastructure projects.
During that period, money earned through the Patriotism Lottery funded provincial reconstruction across Taiwan. In 1985, the Patriotism Lottery hit its peak, generating NT$11.5 billion in sales. Unfortunately, because of widespread illegal gambling, the lottery was shut down in 1987.
Two years later, the Taipei City government authorized the Bank of Taipei to launch the Social Welfare Compassion Lottery. Thanks to strong public interest, six million tickets were sold in just three days. However, officials feared the craze could lead to gambling addiction, so the Social Welfare Compassion Lottery was discontinued only three months after it was launched.
In 1999, the Kaohsiung City government introduced the Compassion Lottery, which offered scratch-card tickets. Although the public embraced the new games, the central government did not approve the Compassion Lottery, and it was forced to close. That same year, a devastating earthquake left Taiwan in need of reconstruction funds, prompting the government to reinstate lottery games. The Bank of Taiwan was authorized to launch the Public Interest Lottery.
Proceeds from the Public Interest Lottery helped earthquake victims and supported the reconstruction of damaged buildings. The current Public Welfare Lottery is issued by the Bank of Taipei and regulated by the Ministry of Finance. Today, money collected through lottery sales finances various public-interest causes.
Sports Betting in Taiwan
Although the lottery is the only gambling-like activity fully legalized in Taiwan, certain forms of sports betting are also permitted. Under the Sports Lottery Issuance Act, people may place limited wagers on several sports.
Through the national Sports Lottery, punters can bet on U.S. MLB and NBA games. The Sports Lottery Issuance Act grants Fubon Bank an exclusive monopoly over sports lottery operations in Taiwan. The same law defines a sports lottery as any lottery in which the winner is determined by the result of a professional or collegiate sporting event.
Online Gambling
Except for the lottery and limited sports betting, all other forms of gambling are currently illegal in Taiwan, including land-based and online gambling. In recent years, however, there has been speculation that the government may amend its laws to regulate online gambling.
If Taiwan followed the trend seen in many other jurisdictions that have welcomed online gambling, the Criminal Code would need significant revisions. After the Sports Lottery was established in 2008, Taiwan partially lifted the gambling ban by allowing land-based casinos on the country’s offshore islands. Many observers believed this move could pave the way for a regulated land-based casino industry, and eventually for online gambling as well.
Nevertheless, although the ban was relaxed in 2009, no brick-and-mortar casino has yet opened on any of Taiwan’s offshore islands. With no land-based casinos in sight, online gambling has also stalled. Lacking legal options, Taiwanese players often turn to foreign gaming websites.
While online gambling is not specifically addressed in the Criminal Code, Article 268 states that anyone who provides a place for gambling or gathers others to gamble is breaking the law. Authorities have interpreted this provision as applying to online gambling, making it an illegal activity.
Critics question how well the current law addresses online wagering, but those who use offshore gaming sites can still face penalties. Local authorities have arrested and prosecuted individuals involved in both domestic and offshore online gambling operations.
Closing Thoughts
As of now, gambling in Taiwan remains illegal under the Taiwanese Criminal Code. Both land-based and online gambling are prohibited within the country, and participants as well as operators face penalties.
Although casinos have still not been legalized in Taiwan, lottery games have been introduced several times throughout the country’s history. Today, lotteries are commissioned by the Ministry of Finance, and the money collected is used to fund various public projects. The sports lottery has also been legalized, allowing Taiwanese bettors to wager on US MLB and NBA games.
Aside from the lottery and the limited sports lottery, Taiwan has not legalized any other form of gambling. Although there have been proposals to amend the law, and the ban on land-based casinos was technically lifted in 2009, no casinos have been allowed to open on Taiwan’s offshore islands. Online gambling is also prohibited, with local authorities imposing penalties on those caught gambling illegally online.
