Under a new gaming law passed by the Papua New Guinea unicameral parliament, each of the country’s 19 provinces and the National Capital District will be allowed to hold a casino licence for 10 years. Overseas lottery products will also be allowed, as will Internet gambling. The comprehensive law will, according to Prime Minister Somare, be heavily regulated and controlled and help to end illegal gambling. Papua New Guinea, mainly rural, consists of the eastern side of the island of New Guinea – the western side is Indonesian – and numerous offshore islands.

Future casino operators would be required to pay 20% of gross gaming revenue plus a 5% gaming levy for community benefit. "Casinos will contribute substantially to the national economy in terms of new employment, investment, taxes and foreign currency," said Somare in an address to parliament. He added, "The need for clear control mechanisms to properly regulate and police all forms of gaming in the country has become urgent and serious."

Using licensed gaming to boost a country’s economy is becoming increasingly popular around the world. Papua New Guinea is just the latest to pass a gaming law but more countries have similar legislation being enacted or under discussion. It remains to be seen how many of the 20 licences would be attractive to potential casino operators. Lack of infrastructure, problematic land ownership, and a diverse population of fewer than 6 million with some 850 indigenous languages, all need to be taken into consideration. Only around 18% of the people live in urban centres and the terrain makes development difficult. (E-05.02.07)

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