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Palau is an island country consisting of about 340 islands located in the western Pacific Ocean. This archipelago was discovered by the Spanish in the early 18th century. After that, it was part of the Philippine Revolutionary Government.

Palau officially became an independent republic in 1994. Although US gambling laws would affect Palauan rules, the two were not directly related. The legal status of online casino gambling is somewhat complicated in Palau because Palau gambling laws do not explicitly regulate online casinos.

Gambling is not allowed in Palau, although there have been some attempts to legalize it. On the other hand, online casinos are not mentioned by any regulation, making them a gray area. As a result, in Palau, there are no legal and licensed online casinos based at the moment. If you want to play at the top online casinos, check our list of the best online gambling sites.

The RA Entertainment company has stated their intention is to introduce online gambling to the islands, to be exact, through cryptocurrency. However, the Palauan administration stated that the company was not registered with the Foreign Investment Commission and did not have a license to offer online gambling games legally.

While online casinos may not have a license on the islands, no law in Palau prohibits participation in online casino gambling. As a result, locals are still free to play on any international online casino website.

The first bill to legalize casino gambling in Palau was created and passed by Congress in 2003. The bill would legalize gambling at Angaur Island casinos, but it was vetoed by the president and not approved. The veto is based on the worry that the establishment of a casino will ruin the country's image.

Palau mainly relies on tourism as a source of income. While the advent of casinos will undoubtedly change the tourist nature of the islands, even it will significantly increase revenue through gambling taxes and other expenses from visitors.