Voting 9 -4 in favor of the measure will enable concessions of internet gambling to put up business in Palau.
Pachinko is a gaming device used for amusement and gambling, popular in Japan and the United States.
Voting against the House Bill No. 8-7-1, HD2, SD1 were Sens. Adalbert Eledui, Tommy Remengesau Jr., Surangel Whipps Jr. and Kathy Kesolei.
Whipps in voting against the measure said that Palau should be consistent on its stand on gambling.
“I think we need to be consistent with what we say. The position of Palau is clear and President Johnson Toribiong vetoed the casino bill, and believed that at this time this gambling is not appropriate for Palau,” Whipps told his colleagues during the session.
Kesolei agreed with Whipps that gambling will do harm on the lives of Palauans.
“Gambling business is not appropriate or it’s too harmful for Palau. It can degrade our nation’s integrity,” Kesolei said.
Eledeui , meanwhile said that internet connectivity in Palau is very slow and is concerned about its reliability.
“That is the major dilemma we are facing with now. It’s a good idea but at this time can we afford to attract the high-end business people in Palau, spend money and still use the system to communicate with their business? I do believe the answer is no,” Eledui said.
Rules and regulations will be promulgated and the Finance Minister will be authorized to grant an experimental exclusive up to two Virtual Pachinko Concessions to, and execute a Pachinko Concession Agreements with, any person and to organize and operate a Virtual Pachinko Business, and to grant an exclusive up to two Internet Digits Lottery Game to Paragon Investments International Incorporated (“Paragon”) for the operation of an internet digits lottery games within the Republic.
The term of each Concession Agreement will not exceed five years.
Each Concession Agreement shall provide for a minimum annual Concession fee of eight percent of the total gross receipts gross revenue realized from the operation of each Virtual PachinkoBusiness or Internet Digits Lottery Game Business in Palau.
The annual fee will be $250,000.00 per year payable semi-annually.
Palauans are prohibited in playing pachinko.
