After nearly 20 years of debate on the issue, the legislature passed the revision of a statute governing the development of the country's outlying islands, including the Penghu Islands, by a 71-26 margin.

The ruling Kuomintang, which controls nearly three-quarters of the 111-seat legislature, supported the amendment, while the opposition Democratic Progressive Party opposed it, arguing the economic benefits of casinos may not be as great as their social costs.

Under the amendment, however, referendums should be held on the outlying islands to allow residents to determine whether casinos should be built there.

For the referendum to pass, more than 50 percent of the valid ballots cast must support the measure, but unlike Taiwan's national Referendum Law, the casino referendums will not require that 50 percent of all eligible voters must participate in order for them to be valid.

KMT Legislator Lin Tsang-min, who sponsored the amendment, said it will provide a boost to Taiwan's economically underdeveloped outlying islands.

"It will promote the development of the outlying islands and help them tap into new sources of revenue," Lin contended.

It is stipulated in the amendment that casinos must be opened on the premises of international hotels so operators of the tourism casinos will be exempt from criminal statutes that penalize those who gamble.

The Executive Yuan will also be required to set up an outlying island development fund of no less than NT$30 billion (US$909.09 million).

In response to the passage of the "casino bill," Wang Chien-fa, county chief of Taiwan's outlying archipelago Penghu, voiced his welcome at a press conference, and said that he will soon organize a referendum to seek local residents' approval for opening casinos on the island off southwestern Taiwan.

Wang said that the county government has decided to begin to hold presentations around the county in late January to promote public support for its policy and measures to develop the casino business.

Wang also said that he will invite the best international investment groups to help Penghu develop the gaming industry.

In related news, opposition DPP lawmakers yesterday voted against the amendment after DPP chairwoman Tsai Ing-wen told reporters that "we have been crystal clear in our stance that we oppose the opening of gambling business in the offshore county of Penghu. "

Tsai said that the impact on the natural environment and social costs of such an opening could even far exceed the anticipated economic returns.

Earlier yesterday, a group of religious figures yesterday staged a protest in front of the Legislative Yuan against a proposed law amendment that permits gambling in Taiwan's outlying islands.

Buddhist Master Shih Chao-hui, leader of an anti-gambling alliance composed of a number of religious groups around the country, said at the demonstration that if casinos are allowed on Penghu, the island group will become a gambling mecca for adults from all over the country.

"Why should a major issue that involves the entire population of the country be allowed to be determined only by Penghu residents? " Shih asked.

Instead, she contended, a nationwide referendum should be held to obtain the opinion of the entire population on the issue.