The Federated States of Micronesia (FSM) is an island country in the Pacific Ocean comprising of 607 islands and a land area of 702 square kilometers. This makes it possible to undertake the analysis of legislation on gambling and betting. The capital city is Palikir and the Federated States of Micronesia stretches 2,500 kilometers from east to west. In the text, the focus will be made on the legal aspect of sports betting and Betting Sites in Federated States of Micronesia.
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Historical development of Gambling law legislation
The history of the Federated States of Micronesia archipelagos is also colorful and can be divided into the period of contact with Europeans, colonization, and international organizations. Thus, it can be stated that history plays a crucial role in the present legal regulation of gambling in the country.
16th Century: Explorers from the Western world reach the islands.
1885: The islands are occupied by Spain.
- Post-World War I: Japan is situated in the islands.
- Post-World War II: United States administration under United Nations authority.
1979: Passage of the FSM Constitution.
1986: FSM receives independence through FSM-US Treaty of Free Association.
Gambling Law and Regulation in Federated States of Micronesia – 5 Things to Know
Regulatory Agencies and Licensing
Currently, the Federated States of Micronesia does not have a single federal law governing gambling; the laws differ from state to state. This section provides an overview of legislation of gambling in the various states.
Land-Based Casinos
- Kosrae: Gambling and casinos are banned in any form and especially those that are foreign invested.
- Pohnpei: Less restrictive; casinos are considered as restricted. Previous attempts at negotiations with a British-Australian investment group were unsuccessful, and there are no casinos in operation at the present time.
- Chuuk and Yap: Like in the case of Pohnpei, debates on the introduction of casinos have not led to the formation of legal bodies.
Online Gambling
- Unregulated: Online casinos and other types of gambling are still legal, but they are not regulated at the federal or state level.
- Potential for Expansion: Although it is a possibility, there are no actual land-based operators who provide online services. People in the country can access and use international online gambling products like sports betting, lotteries and poker.
- Freedom to Gamble Online: People are allowed to participate in online gambling with international sites because this is not prohibited.
Licenses and Fees of Betting Sites in Federated States of Micronesia
Where applicable, specific license types and fees are not standardized due to the lack of federal legislation that comprehensively addresses this issue. Here’s a summary:
- Kosrae: No licenses were issued because of prohibition.
- Pohnpei, Chuuk, Yap: None has been granted as no casino has been developed. There are ongoing debates but no legal frameworks have emerged from these deliberations.
Important Events
- 1986: FSM receives its independence, which from this point can create the possibility of a unique state legislation for each of them.
- Ongoing: Debates regarding the legalisation of casino gambling with the aim of stimulating economic and tourism growth still go on but are inconclusive.
Gambling Taxes
As for the current state of affairs, there is interest in regulating and taxing gambling for revenue generation purposes but no systematic tax structures have been developed and put in place because there are no legalized gambling institutions in the country.
Potential Tax Benefits
- Revenue Generation: There have been proposals that indicated that gambling, if well regulated could be a source of enhanced tax incomes.
- Economic Boost: Opportunity to increase the tourism industry by properly legalised gambling facilities.
Prohibited and Permitted Bets of Betting Sites in Federated States of Micronesia
The laws currently in FSM states are aimed primarily at the prohibition or at least severe limitation of gambling.
Prohibited Bets
- Kosrae: It is unlawful to operate a gambling business and any foreign investment in that line is also unlawful.
- Pohnpei, Chuuk, Yap: It does not have a specific ban but no casinos have been set up which could mean that physical gambling entities are banned.
Permitted Bets
- International Online Gambling: However, it is still legal for residents to gamble online as long as the betting companies are from other countries.
- Local Lotteries and Small-Scale Betting: It did not state any detail about small scale betting or local betting under the state regulated laws.
Conclusion
The case of the Federated States of Micronesia is quite intriguing when it comes to the legislation of gambling in a country with such a history and a diverse population. As of now FSM does not have betting sites or legalized sports betting platforms but the people of FSM can freely use international betting sites online. The legal aspect remains in a state of change, and the idea of licensed gambling remains a subject of discussion regarding its potential advantages for the economy.
For those interested in betting sites and sports betting, it is necessary to learn more about the existing legislation and rules in the Federated States of Micronesia that may have changed recently. Thus, some opportunities might be provided for both national and foreign actors during such a process that the country is still looking for its place in the economic and regulatory environment.