Papua New Guinea Legalizes Online Gambling

There’s good news for the gambling community, as Papua New Guinea has passed a gaming law to allow casinos and online gambling. Titled The Gaming Control Bill 2007, it will allow each of the country’s 20 provinces to hold a casino license for a decade. It will also allow overseas-based lottery products and online gaming.

This law was put into place in order to boost the economy, and citizens shouldn’t have to wait long. A Korean consortium plans to build a $35 million hotel and casino there, and the project has already been approved by the Papua New Guinea cabinet. Considering that the gaming market in the Asian-Pacific region is expected to reach $7 billion by 2010, this is certainly substantial.

In addition to these revenues, casino operators will be required to pay 20% of gross profits in taxes, and another 5% in a community benefit levy. Provisions are also included to keep out criminal exploitation and impose strict entry requirements. Large casino entry fees will also be in place in an effort to keep the locals from gambling.

But despite the economic benefits and the unanimous 61-0 vote in parliament, there are those who do oppose the new law. In fact, eight members (including the Treasurer and Community Development Minister) walked out of the chamber before the vote. The law has also come under fire from church and women’s groups and former Prime Minister Sir Mekere Morauta vows to repeal the law if he is returned to power in the June elections.

Current Prime Minister Sir Michael Somare remains optimistic, however. “Casinos will contribute substantially to the national economy in terms of new employment, investment, taxes and foreign currency,” he told parliament.

So is Papua New Guinea destined to become the next offshore gaming hotbed? Considering that foreign investors are already making plans to build a casino, there’s a high probability that it will be. But ultimately, it will come down to the local residents and the June elections.

Keep your fingers crossed, fellow gamblers.

For more articles on gambling laws and issues, be sure and read the following:

Barney Frank Introduces New Gambling Legislation

Missouri Senate Eliminates Casino Loss Limit

Papua New Guinea Legalizes Online Gambling