Taiwan to launch sports gambling to stimulate economy

Sep 3, 2007, 8:08 GMT

Taipei - Taiwan is set to announce the issuer of sports lottery on Monday to prepare to launch sports gambling next year.

The Ministry of Finance held the final selection meeting Monday to review the application from three finalists, and is expected to announce the winner late Monday.

The three bidders are the Chinatrust Commercial Bank, Fubon Bank and Bank of Kaohsiung.

The Chinatrust is teaming up with the Australian consultant company SMC while the Fubon Bank has invited the Hong Kong Jockey Club, which operates horse racing in Hong Kong, as its consultant.

The ministry is expected to announce the winner of the contract after the review meeting ends Monday afternoon. The winner will get a six-year license to operate sports gambling stating April 15, 2008.

The sports lottery will cover betting on several to a dozen sports like US and Taiwan baseball, NBA, horse racing and car racing.

Taiwan launched public welfare lottery in 2000 to benefit the handicapped by allowing them to sell lottery tickets, but decided to launch sports lottery to use the proceeds to promote sports and stimulate the economy.

Analysts predict that sports lottery can bring 20 billion Taiwan dollars (600 million US dollars) revenues each year, about one-fourth of the revenues from the public welfare lottery.

Foreign lottery providers are eying Taiwan's sport lottery so that they can supply the software and hardware for Taiwan's sports gambling.