KOROR (Palau Horizon) – The House of Delegates passed on final and third reading the proposed measure which will permit controlled gaming for high-end tourists.
The House bill had several floor amendments were introduced on the bill but it basically that a gaming industry will expand Palau’s economic base first by creating a more diverse experience for visitors who have already come to Palau.
The House bill stated that casinos will give visitors another activity to engage in, and will also spur the development of additional industries to serve the casinos and their customers. This in turn will lead to greater economic activity, and greater revenues.
The HOD also added that the creation of a gaming industry will not have substantial negative impacts on Palau’s environment.
“Casinos will not have a greater impact on the environment than other large hotels, nor will they pollute the air or water,” the House bill said in justifying the passage of the measure.
The Senate has its own version of the measure but action on it has been deferred.
The bill was supposed to be passed on final and third reading, it was deferred however for further discussions.
The house version of the casino bill will permit five casinos to be licensed, and establishes a detailed procedure for doing so.
The bill requires that the Chief of the Division of Property and Supply, within 30 days of this bill becoming law, issue a request for proposals for casino-resorts to be built in Palau.
It is also required that the proposal include a bid for the amount the casino-resort would commit to paying the Republic of Palau as an incentive for the people of Palau to accept gaming in their country and to grant it a license. This fee, called a “casino initiation fee,” must be at least 10 million dollars, and can be paid over four years. There would be no upward limit on a casino initiation fee.
The bill will create a highly regulated system of controlled gaming that will be paired with high-end resort facilities and marketed to high-end tourists who have the financial resources to enjoy gaming as a pastime.
The bill also calls for a casino in Angaur. The bill provides that one such casino license must be awarded to an applicant whose proposal states the resort-casino shall be located in Angaur.
