Mainland China does not allow gambling and the Chinese government have been very clear that any establishments or players found running illegal gambling activities will be immediately prosecuted.  However the political relationship between the Mainland and the people of Taiwan is complicated with Taiwan considering itself a sovereign nation, and Beijing considering it their 23rd province.

Taiwan legislators were recently in discussions again on a draft bill providing for regulation in regard to establishment and management of casinos.  The Taiwanese government in 2009 approved legislation that permitted its three outlying islands to make individual decisions via a referendum on whether they want to develop casinos on their respective islands.

Beijing has reportedly informed officials in Taiwan that they did not want a casino industry to start on any of the islands. Kinmen Island is less than 10 kilometres away from China’s Fujian province. Beijing also went a step further to suggest that should Taiwan proceed with its plans of launching a casino industry, it would withdraw the “Three Small Links”.

The “Three Small Links” come down to postal, transportation and direct trade channels that operate between China’s Fujian ports of Xiamen and Fuzhou and the Taiwan Islands. The policy was established in 2008.

Should Taiwan decide to go ahead with the construction of casinos on these islands, a number of premier gambling establishments may be interested in operations. Companies such as Las Vegas Sands Corp, MGM Resorts International and Caesars Entertainment Corp have all reportedly studied the possibilities of investing in Taiwan.

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