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Editorial: Gambling on legalization

It is notable that Premier Su Tseng-chang (蘇貞昌) hurried to hose down reports this week on the possible legalization of horse racing and motor racing.

Supporters of the legalization of gambling in these and other forms seem to wield attractive arguments for localities that need investment and employment.

But pan-blue-camp speculation on this development is not entirely unreasonable. With presidential and legislative elections approaching, the merging of sports and legal gambling in southern Taiwan, where the pan-green camp enjoys its strongest support, would stand to deliver the Democratic Progressive Party (DPP) government a significant dividend. This is especially meaningful given the wealth and development gaps between northern and southern Taiwan.

Su's response to the reports was not arbitrary. The gambling industry is one that brings immense profits to a very small number of entrepreneurs and employment and development options to a larger number of ordinary business owners and employees.

But gambling also brings with it political risks. Lotteries are already very popular -- but they are under tight control. If horse and motor racing are legalized, will the government then consider other forms of gambling, and will it be prepared to invest resources to offset the effects of more addiction?

Legalization of gambling -- in theory -- allows the government to take the impetus away from gambling rackets and to reduce the violence and threats of coercion that come with illegal gambling.

These rackets are closely tied to loan sharks, prostitution and other criminal activities. Yet law enforcement has seemed ineffectual in the face of the challenges posed by gangsters who thrive on the illegality of gambling. Unless someone is seriously injured or killed, police often downplay gambling-related incidents as mere "financial disputes," as if such disputes justified kidnapping and violence.

So, under the circumstances, there is an argument that the legalization of gambling would denude criminals of one of their biggest cash cows.

However, others will say that legalization will only prompt additional crime and violence, not to mention damaging Taiwan's image -- possibly reducing it to that of the bumpkin profiteering of Macau and other city states.

In recent years the tourism lobby has backed legalization, assuming that a marked increase in tourists of some affluence would help revive its fortunes. Island communities such as Penghu, Matsu and Kinmen have also lobbied the government to allow gambling operations.

It is fair to say that adults are entitled to gamble in a properly regulated industry. But it is not fair to say that gambling can serve as an economic panacea for incompetence in the tourism industry.

And regardless of politicking, the government is duty bound to examine the economic and social consequences of the gambling industry on all parts of the community before proceeding.

If the government decides to go down this path, the next question is not just where to start, but also how to protect against the possible expansion of social aberration that comes with an industry in which most ordinary participants lose money most of the time.
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