The bill, which is an amendment to an act governing the development of the outlying islands, was not passed at the legislative meeting, with 84 of the 149 legislators present saying nay, 57 saying yea and eight abstaining.

According to the bill, initiated by the Non-Partisan Solidarity Union (NPSU), if a majority of the residents on Kinmen, Matsu and Penghu consent to the opening of casinos in their hometowns, the central government could grant permits to international tourism hotels to operate casinos and other gambling businesses there as part of efforts to rekindle tourism in those areas.

The local government of Penghu has been pushing for the passage of the bill, while the NPSU lawmakers were hoping it could be passed before the Legislative Yuan adjourns its current session Friday.