KOROR (Palau Horizon) — Palau’s legislature, the Olbiil Era Kelulau, has passed legislation allowing slot machines and pachinko games in the country and permitting gambling operations in Angaur.
President Tommy Remengesau, however, has indicated that he might veto the bill.
The bill states that “the OEK finds that it is in the interests of the republic to allow for the limited use and possession of amusement devices commonly known as slot machines and pachinko…and recognizes that gaming is popular and may be useful to attract more visitors to Palau.”
The bill would allow licensed hotels and other businesses to provide access to gambling machines.
The measure, according to lawmakers, will not violate the ban on gambling as only tourists and non-resident workers will be allowed to play the machines.
Lawmakers said they want to protect the Palauan citizens from gambling due to its potential adverse social and economic effects.
The bill was approved as a revenue-generating measure. Money generated from the licensing fees will be distributed as follows: 50 percent for appropriation to the state where the license gaming establishment operates; 20 percent for the operating expenses of the National Gaming Commission; and 30 percent to be divided equally among the 15 other states.
The commission will oversee the operations of all gaming machines and other forms of gambling.
Sen. Yukiwo Dengokl voted against the bill, saying that its passage “is not good” Palau. There are other ways to make money, he said.
The bill needed further review but its passage was rushed, he said. Moreover, the provision excluding Palau citizens from playing the game violates the equal rights of local residents, he said.
Remengesau, for his part, said he would still review the measure and would get the “input” from his Cabinet members.
He added, however, that as a matter of policy, he has not changed his position on gambling. Its ill-effects must be considered, he said.
“Palau can survive without it,” Remengesau said.
Palau is already in a good financial standing and could operate even without the revenue that would be generated from the measure, he said.
