Timor-Leste has recently taken a significant step in the gambling sector by planning to issue its first offshore gambling license, aimed at attracting international investment and promoting economic development.
Government Support for the Development of Online Gambling Industry
President José Ramos-Horta of Timor-Leste has publicly expressed support for issuing online gambling licenses to foreign markets, emphasizing that the move is intended to attract foreign investors, rather than developing domestic physical casinos. He noted that if foreigners wish to engage in online gambling, Timor-Leste could offer this possibility.
Establishment of the Virtual Gaming Association (VGA)
To regulate and promote the development of the online gambling industry, Timor-Leste has established the Virtual Gaming Association of Timor-Leste (VGA).
The association recommends the government to issue both B2C (Business-to-Consumer) and B2B (Business-to-Business) online gambling licenses and plans to start issuing them in the second quarter of 2024. VGA also suggests that Timor-Leste could adopt regulatory models from places like Malta and the Isle of Man to establish a robust regulatory framework.
Economic Development and Job Opportunities
The government of Timor-Leste has signed an agreement with Asia-Pacific Strategic Investments of Singapore, planning to establish the country's first casino and bank.
According to the agreement, the company will invest $60 million in building a five-star hotel and a high-security casino, and formulate strategic plans to attract international clients. Additionally, there are plans to raise $100 million through convertible bonds to expand operations in Timor-Leste.
Regulation and Social Impact
Although the government emphasizes that online gambling is only aimed at foreigners, there are concerns about potential social issues, such as gambling addiction. President Horta emphasizes that the government will implement strict regulatory measures to ensure the transparency and accountability of online gambling activities, preventing crimes such as money laundering and fraud.
By issuing its first offshore gambling license, Timor-Leste demonstrates its ambition to become a regional gambling hub. As related policies and regulatory frameworks are gradually perfected, Timor-Leste is expected to occupy a place in the global online gambling industry.
