Also known as Orchid Island, Lanyu was not convinced a day after the bill passed that it would deliver the economic development that the legislation's proponents promised.

"Are there no other ways to stimulate the economy besides gambling? " wondered Lanyu Township chief Chou Kuei-kuang in reaction to the measure.

"Lanyu is already poor; now you want us to gamble! " Chou said, clearly uninterested in promoting casino gambling on the island off the coast of Taitung County.

On Monday, the Legislative Yuan passed the revision of a statute governing the development of the country's outlying islands, which include Penghu, Kinmen, Matsu and Siao Liouciou in the Taiwan Strait and Lanyu and Green Island off Taiwan's southeastern coast.

Under the revised law, casinos can be built on any of the islands on two conditions -- local residents must approve the idea in a referendum and international investors must participate in the gambling industry development project -- said Chen Tain-jy, chairman of the Cabinet-level Council for Economic Planning and Development.

For the referendum to pass, over 50 percent of the valid ballots cast must support the measure, but unlike the national Referendum Law, the casino referendums will not require that 50 percent of all eligible voters participate for the votes to be valid.

Those supporting the amendment believe it will provide a boost to Taiwan's economically underdeveloped outlying islands.

Opponents contend, however, that lifting the ban on gambling could result in social problems, such as the proliferation of crime and a rise in the number of problem gamblers.

They are also concerned that the islands' pristine environments will be harmed by the development of international resorts and casinos and the potentially heavy influx of tourists.