The Government of Fiji has announced its intention to legalise, and enable the development and operation of Fiji's first casino. The Government has released a document for potential investors wishing to tender for what will be, at least initially, an exclusive licence for the establishment and operation of a casino(1).

What is being offered?

The Government has put a variety of fiscal incentives on the table, which appears to include:

  • tax incentives including tax free imports of building and construction materials and equipment; and
  • the ability to transfer profits out of the country in accordance with the Reserve Bank of Fiji's Guidelines and laws(2).

Developing a regulatory framework

There will be a process to develop a regulatory framework in Fiji that will govern the prospective casino's operation in Fiji. The Government has committed to putting in place a framework that is in keeping with "international best practice in casino operations and management". This will also incorporate the country specific circumstances of Fiji, including the socio-economic conditions and the Fiji brand(3).

While there have been recent casino developments in Singapore and Malaysia which may be pertinent when developing a framework, we briefly review the two regulatory frameworks in neighbouring Samoa and Vanuatu(4) to see if there are any lessons to be learnt from those jurisdictions.

Establishing a casino tax and community fund

Similar to Vanuatu and Samoa, the Fiji Government has preliminarily indicated that the Fiji casino will be subject to taxation based on gross gaming revenue. It has also indicated that the successful licensee will contribute around one (1) percent of gross gaming revenue to a community benefit fund to be administered by the Government. It is yet to be disclosed whether the Fiji Government will impose an annual casino licence fee as applies in Vanuatu and Samoa(5).

Vanuatu

Vanuatu has had its framework and casino in place since 1993. The legislation is the Casino Control Act 1993 (Vanuatu) (as amended).

The key difference to the Samoan framework is that any application for licences are made to the Minister, and the Minister has the power to grant any person a licence for the operation of a casino in Vanuatu(6).

Samoa

Samoa enacted the Casino and Gambling Control Act 2010 (Samoa) on 19 October 2010. Unlike Vanuatu, Samoa has established a Gambling Control Authority whose role includes:

  • inviting expressions of interest for the establishment and operation of casinos and applications for casino licences and to consider and determine those applications;
  • keeping under constant review all matters connected with casinos and the activities of casino operators , and persons who are in the position to exercise direct or indirect control over the casino operators or persons associated with casino operators;
  • granting approval for new games and gaming equipment; and
  • general powers to monitor, review and investigate the operation of casino's and the regulatory framework(7).

Which will it be in Fiji?

Again, it is yet to be disclosed whether Fiji will appoint a similar authority with Samoan type regulatory powers to oversee the development and operation of this new industry, or whether the regulation will be a task solely for the responsible Minister. Perhaps elements from the Singaporean and Malaysian models will be better suited to Fiji's proposed industry.

PLN will provide a follow up article when more details of Fiji's casino regulatory framework becomes available.

We note that interested developers and operators had until 30 November 2010 to submit an expression of interest.

Footnotes

1. Government of the Republic of Fiji Casino Development & Operation Terms of Reference for Expressions of Interest last viewed at documents.ag.gov.fj/Fiji%20Casino%20TOR%202010.pdf 25 November 2010.

2. Above at n1.

3. Above at n1.

4. Casino Control Act 1993 (Vanuatu); and Casino and Gambling Control Act 2010 (Samoa).

5. Section 12 Casino Control Act 1993 (Vanuatu); and Section 36 Casino and Gambling Control Act 2010 (Samoa).

6. Section 2 and Section 4 Casino Control Act 1993 (Vanuatu).

7. Section 7 Casino and Gambling Control Act 2010 (Samoa).

Winners of the 2010 Lawyers Weekly e.law Asia Pacific Box Breaker of the Year Award and the 2009 NSW Exporter of the Year Award

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.