Taiwan - legal status

Overview

Taiwan belongs to the "forbidden" jurisdictions: gambling is generally prohibited by the Criminal Code, including online formats. Exceptions are state lotteries: Public Welfare Lottery and Taiwan Sports Lottery (licensed by the Ministry of Finance/Special Law). Attempts to legalize casinos as part of integrated resorts on individual islands (Matsu, Penghu, Kinmen) rested on politics and referendums: the only "for" was in Matsu (2012), but the relevant law was never adopted; Penghu (2009, 2016) and Kinmen (2017) said no.

Legal framework

Basic inhibition

Taiwan Criminal Code, Art. 266, 268: prohibit participation in gambling and the organization/provision of places for gambling for the purpose of making a profit. In 2021, the amendments clearly cover "telecommunications/electronic means/Internet," from 14. 01. 2022 there is an increased penalty for online play.

Lotteries as an exception

Public Welfare Lottery - issued under the Public Welfare Lottery Issue Act under the control of the Ministry of Finance Consocium (operator - Taiwan Lottery Co., associated with CTBC Bank; INTRALOT's technology contractors/etc.) .
Taiwan Sports Lottery (TSLC) - operates under the Sports Lottery Issuance Act and by-laws; this is the only legal "bet" vertical (for sports) through official channels.

Online mode: state position

Complete ban on online casinos and offshore sites. Criminal liability for players has been increased since 2022; for organizers/intermediaries - under Art. 268 of the Criminal Code. Practices include blocking domains/payments and curbing "aggregators "/affiliate traffic.

Island referendums and why IR didn't happen

Legal framework: Amendments to the Offshore Islands Development Act paved the way for casinos on the islands when approved by a local referendum; a separate casino law (Tourism Casino Administration Act) was required, but it "stuck" in parliament.

• Penghu - against in 2009 and 2016.
• Matsu (Lienchiang) - "for" in 2012 (the first and only "for"), but without the subsequent national law, the project was not implemented.
• Kinmen - "against" in 2017 (the vast majority).

Conclusion: despite local mandates, a nationwide standard for IR has not been adopted - there is no legal casino market.

Legal verticals (what can be)

1. Public Welfare Lottery - tickets/circulation and instant products, funds are directed to social programs (operator - Taiwan Lottery Co.; contract technology support).
2. Taiwan Sports Lottery - sports betting through the official website/terminals under the TSLC license (mode and limits are determined by special law and regulations).

What is prohibited (high-level)

Online casinos, poker, slots, bingo, sweepstakes outside TSLC.
Land casinos on the "mainland" and islands without a valid national law.
Advertising/affiliate "funnels" to illegal sites, payments in their favor.

Enforcement and business risks

Players: from 2022 increased fines for online participation.
Operators/affiliates: liability under Art. 268 of the Criminal Code for organization/assistance (including "provision of space" - widely interpreted as sites/platforms).

Infrastructure: blocking domains/payments, monitoring by communication providers and financial institutions. (The general practice of the region confirms the trend towards tightening online gambling.)

Best Practices

For operators and B2B providers

Do not target Taiwan in product, marketing, domains, locales and payments.
Filter MCC/routes and block any transactions in favor of offshore casinos.
Avoid content/SEO/UGC "bridges" to illegal sites; Clean Reflinks.

For brands and media

Do not advertise "online casinos/games" and "bypass" materials; risk of falling under assistance.

For investors

The bet on IR casinos is high-risk before the national law; focus on lottery/sports-lottery contracts and technology supply.

Perspective

Short and medium horizon: maintaining a complete ban on casino/online play and supporting only lottery verticals. Even with local support for the islands, real legalization of IR is impossible without the adoption of a comprehensive law, which has been "frozen" for many years.

Terms

Public Welfare Lottery - state "social" lottery.
Taiwan Sports Lottery (TSLC) are the only legal sports betting.
IR (Integrated Resort) - integrated resort with casino; in Taiwan, it is possible only on islands with a local "for" and a national law (which does not exist).