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Gambling 2016 Edition, Taiwan Chapter w ICLG The International Comparative Legal Guide to: Gambling 2016 2nd Edition A practical cross-border insight into gambling law Published by Global Legal Group, with contributions from: Addisons Lewis Roca Rothgerber LLP Anderson Mōri & Tomotsune Lin & Partners Carallian MannBenham Advocates Limited Cuatrecasas, Gonçalves Pereira MdME | LAWYERS | PRIVATE NOTARY DLA Piper MDMI Legal DLA Piper UK LLP Melchers Law Firm Fox Rothschild LLP Miller Thomson LLP Gaming Legal Group MME Legal | Tax | Compliance Hassans International Law Firm Nestor Nestor Diculescu Kingston Petersen Herzog Fox & Neeman Law Office Nishith Desai Associates Hinckley, Allen & Snyder LLP ORIS LLP Horten Portilla, Ruy-Díaz y Aguilar, S.C. International Masters of Gaming Law Rajah & Tann Singapore LLP Jones Walker LLP Sirius Legal Kim & Chang Studio Legale Sbordoni The International Comparative Legal Guide to: Gambling 2016 Editorial Chapter: 1 Shaping the Future of Gaming Law – Dr. Joerg Hofmann & Michael E. Zatezalo, International Masters of Gaming Law 1 General Chapters: 2 The Road to Online Gambling Reform – Little Cohesion and the Next Wave of Consolidation – Contributing Editor Hilary Stewart-Jones, DLA Piper UK LLP 3 Hilary Stewart-Jones, 3 Fantasy Sports Contests in the United States – An Analysis of Their Legality and a DLA Piper UK LLP Look into the Future – Mark Hichar, Hinckley, Allen & Snyder LLP 7 Head of Business Development 4 An Outlook on Japanese Gaming/Gambling Regulation – The Casino Bill and Anticipated Changes Dror Levy to Current Legislation – Hitoshi Ishihara & Takashi Nakazaki, Anderson Mōri & Tomotsune 14 Sales Director Florjan Osmani Country Question and Answer Chapters: Account Directors 5 Australia Addisons: Jamie Nettleton & Jessica Azzi 19 Oliver Smith, Rory Smith 6 Belgium Sirius Legal: Bart Van den Brande 24 Senior Account Manager Maria Lopez 7 Bulgaria MDMI Legal: Miglena Ivanova & Miglena Dimitrova 28 Sales Support Manager 8 Canada Miller Thomson LLP: Danielle Bush 33 Toni Hayward 9 Denmark Horten: Nina Henningsen 40 Editor Rachel Williams 10 Dutch Caribbean Gaming Legal Group & Carallian: Bas Jongmans & Dick Barmentlo 46 Senior Editor 11 Germany Melchers Law Firm: Dr. Joerg Hofmann & Dr. Matthias Spitz 54 Suzie Levy 12 Gibraltar Hassans International Law Firm: Peter Montegriffo QC & Nyreen Llamas 59 Group Consulting Editor Alan Falach 13 Greater Antilles Gaming Legal Group: Bas Jongmans & Josefina Reyes Santana 65 Group Publisher 14 India Nishith Desai Associates: Gowree Gokhale & Ranjana Adhikari 78 Richard Firth 15 Isle of Man MannBenham Advocates Limited: Miles Benham & Carly Stratton 84 Published by Global Legal Group Ltd. 16 Israel Herzog Fox & Neeman Law Office: Yehoshua Shohat Gurtler 90 59 Tanner Street London SE1 3PL, UK 17 Italy Studio Legale Sbordoni: Stefano Sbordoni 94 Tel: +44 20 7367 0720 Fax: +44 20 7407 5255 18 Kazakhstan ORIS LLP: Aituar Madin 98 Email: [email protected] 19 Korea Kim & Chang: Hyun Ho Eun & Sang Hyuk Park 101 URL: www.glgroup.co.uk 20 Macau MdME | LAWYERS | PRIVATE NOTARY: Rui Pinto Proença 106 GLG Cover Design F&F Studio Design 21 Malta Gaming Legal Group: Bas Jongmans & Rudolf Bakker 110 GLG Cover Image Source 22 Mexico Portilla, Ruy-Díaz y Aguilar, S.C.: Carlos Fernando Portilla Robertson & iStockphoto Ricardo Valdivia González 117 Printed by Ashford Colour Press Ltd. 23 Netherlands Gaming Legal Group: Bas Jongmans 122 December 2015 24 Portugal Cuatrecasas, Gonçalves Pereira: Gonçalo Afonso Proença 128 Copyright © 2015 25 Romania Nestor Nestor Diculescu Kingston Petersen: Cosmina Simion & Oana Albu 133 Global Legal Group Ltd. All rights reserved 26 Singapore Rajah & Tann Singapore LLP: Lau Kok Keng & Chia T-Chien 139 No photocopying 27 Switzerland MME Legal | Tax | Compliance: Dr. Andreas Glarner & ISBN 978-1-910083-72-7 Dr. Luka Müller-Studer 146 ISSN 2056-4341 28 Taiwan Lin & Partners: Dr. George Lin & Ross Darrell Feingold 151 Strategic Partners 29 Ukraine DLA Piper: Natalia Pakhomovska & Roman Inozemtsev 155 30 United Kingdom DLA Piper UK LLP: Hilary Stewart-Jones 160 31 USA – Alabama Jones Walker LLP: Kirkland E. Reid 166 32 USA – Florida Jones Walker LLP: Marc W. Dunbar 171 33 USA – Illinois Fox Rothschild LLP: William Bogot & Donna More 175 34 USA – Louisiana Jones Walker LLP: J. Kelly Duncan 179 35 USA – Mississippi Jones Walker LLP: Thomas B. Shepherd III 183 36 USA – Nevada Lewis Roca Rothgerber LLP: Anthony N. Cabot 187 37 USA – New Jersey Fox Rothschild LLP: Nicholas Casiello, Jr. & Patrick Madamba, Jr. 192 38 USA – Texas Jones Walker LLP: Nicole Duarte 196 Further copies of this book and others in the series can be ordered from the publisher. Please call +44 20 7367 0720 Disclaimer This publication is for general information purposes only. It does not purport to provide comprehensive full legal or other advice. Global Legal Group Ltd. and the contributors accept no responsibility for losses that may arise from reliance upon information contained in this publication. This publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations. WWW.ICLG.CO.UK Chapter 28 Taiwan Dr. George Lin Lin & Partners Ross Darrell Feingold value-added Business Tax Act, and the Uniform Invoice Award 1 Relevant Authorities and Legislation Regulations. 1.1 Which entities regulate what type of gambling activity in your jurisdiction? 2 Application for a Licence and Licence Restrictions With limited exceptions, gambling in Taiwan is illegal. The current exceptions are: 2.1 Who can apply for a licence to supply gambling a. the Public Welfare Lottery, introduced in 2002 and regulated facilities? by the Ministry of Finance (“MoF”). The current licence holder, CTBC Bank (formerly known as Chinatrust Article 4 of the Welfare Lottery Act requires that the Public Welfare Commercial Bank), originally obtained a licence for the Lottery issuer be a bank appointed by the MoF. The MoF further period 1 January 2007 to 31 December 2013, and in 2013 requires that applicant banks must be a domestic bank as defined again successfully bid for the licence, for which the term is 1 January 2014 to 31 December 2023; by the Financial Supervisory Commission (“FSC”), satisfy certain capital ratios, satisfy certain credit ratings, have no significant b. sports betting, introduced in 2008 and regulated by the Ministry of Education’s Sports Administration (formerly a legal and regulatory sanctions in the preceding year for its banking cabinet level agency known as the Sports Affairs Council). business, and for an incumbent lottery operator, the lottery business The sports betting business operates under the name and the bank must maintain sufficient provisions for bad debts. TaiwanSports Lottery (“Sports Lottery”). The current licence For the Sports Lottery, the Sports Administration requires that the holder is a consortium that includes CTBC Bank, the local operator be a locally incorporated company with over 50% of the company ADATA, and the global company Intralota. Various equity owned by a local person or institution, have paid-in capital of wagers are available, such as point spread handicaps, match 2 billion New Taiwan Dollars, the directors/supervisors/executives winner, point total, margin of victory, and “prop bets”, on must have no gambling- or financial crime-related imprisonment that events such as the first player to score, usually in the form of “accumulators” that require winning multiple wagers; and concluded within the most recent ten years, a former public servant must have no corruption-related imprisonment that concluded c. the Uniform Invoice Lottery, introduced in 1951, is regulated by the MoF. Businesses with a monthly turnover above a within the most recent five years, have no unresolved personal or designated amount must issue receipts to customers at the corporate (where the individual has legal liability) bankruptcy, have point of sale; a unique lottery number is printed on this no service denial by a bills clearing house arising from insufficient receipt. The MoF announces winning receipt numbers in funds whether ongoing or having ended within the most recent three every odd-numbered month. Unlike the Welfare Lottery and years, there must be no ongoing event or event that ended within the Sports Lottery, participation in the Uniform Invoice Lottery most recent five years that impacts the individual’s creditworthiness, does not require the participant to purchase a lottery ticket and the operator must not be engaging in any other dishonest or make a wager. Our comments herein are thus generally activities. The Uniform Invoice Lottery is operated directly by the limited to the Welfare Lottery and Sports Lottery. MoF via the issuance to retailers of standard format receipts. 1.2 Specify all legislation which impacts upon any 2.2 Who or what entity must apply for a licence and which gambling activity (including skill and social games), entities or persons, apart from an operator, need to and specify in broad terms whether it permits or hold a licence? Are personal and premises licences prohibits gambling. needed? Do key suppliers need authorisation? Chapter 21, Articles 266, 268, 269 and 270 of Taiwan’s Criminal Both the Welfare Lottery Act and Sports Lottery Act require the Code broadly prohibit participation in, organising of, and profiting licensee to obtain approval to delegate the operation of the lottery to from gambling as well as lotteries. The Public Welfare
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