House Bill No. 8-7-1, introduced by Delegates Horace Rafael, Jonathan Isechal, Celestine Yangilmau and Wayne Andrew, will enable concessions of pachinko and internet gambling to put up business in Palau, as well as reduce the cost of the concessions’ permit to attract more operators to conduct business in Palau.
A previous law, RPPL 5-45, legalized pachinko and internet digits lottery game in Palau but failed to attract business investors.
In this particular House Bill, the “OEK finds that amending the existing fee requirements to entice potential investors will likely create more success and facilitate the generation of revenues initially intended by the law.”
The Bill gives authority to the Minister of Finance to grant to interested operators up to two virtual pachinko concessions and up to two internet digits lottery game concessions.
The minimum yearly concession fee is eight percent of the gross revenue of each business. It has also set an annual business license fee of $250,000 payable in advance of each fiscal year.
Four senators voted against the Bill saying, “Gambling business can degrade our nation’s integrity.”
However, to address Palau’s economic needs and “Toribiong administration’s call for revenue generating- and investor enticing-measures,” the OEK passed the legislation and already transmitted the same to the Office of the President for approval.
The President has 15 days to take action.
