Is Gambling Legal in Micronesia? Understanding FSM's Gaming Laws

Key Information

Last Update 2025

Regulatory Authority State governments (no national gambling authority)

License Cost Varies

Regulation by Activity Type

Casinos Prohibited

Online Casinos Prohibited

Betting Prohibited

Online Betting Prohibited

Lotteries Regulated

Poker Prohibited

Highlights

Gambling is generally prohibited, except for lotteries and raffles
Legal gambling age is 18 for permitted activities
No specific regulations exist for online gambling
Large-scale casino operations are banned nationwide
State-level regulation varies for allowed activities
No formal licensing process for gambling operators

Legislation

Primary Legislation

The Federated States of Micronesia does not have comprehensive national legislation specifically governing gambling. There are no federal laws that explicitly ban, regulate, or permit gambling activities across the entire country. Instead, the legal framework is largely decentralized, with individual states such as Pohnpei and Chuuk having the authority to set their own policies regarding gambling. As a result, the regulation of gambling activities—if present at all—varies by state. There is no unified national act or code that addresses gambling, and the absence of federal regulation means that most forms of gambling, including online gambling, exist in a legal gray area. Attempts to operate gambling businesses, particularly online casinos, face legislative barriers due to the lack of licensing provisions at both the federal and state levels.

Regulatory Authority

There is no centralized national regulatory authority overseeing gambling in the Federated States of Micronesia. Oversight and any form of regulation are managed at the state level, if at all. Each state government has the discretion to permit, restrict, or regulate gambling activities within its own jurisdiction. The national government does not maintain a dedicated gambling commission or agency.

State governments may establish their own rules and oversight mechanisms for gambling activities within their territories.
No federal body or unified authority exists to regulate or enforce gambling laws across the entire country.

License Types

Gambling Licensing System in Micronesia

Currently, the Federated States of Micronesia (FSM) does not have a comprehensive national gambling licensing system. The regulatory framework for gambling in Micronesia is largely decentralized, with individual states having authority over gambling policies within their jurisdictions.

National Licensing Status

At the federal level, Micronesia does not issue gambling licenses or have established procedures for licensing gambling operations. There is no national regulatory body responsible for overseeing gambling activities or issuing licenses across the federation.

State-Level Licensing

Gambling regulation is handled at the state level in Micronesia, with each state having its own approach: - Individual states like Pohnpei, Chuuk, Kosrae, and Yap have authority to create their own gambling regulations - Most states have not developed formal licensing systems for commercial gambling operations - Limited licensing may exist for specific activities such as lotteries or raffles - No standardized application processes exist across the federation

Casino Licensing Considerations

Past proposals for casino development, such as the Rancho Verde project in Pohnpei (Lukop, Madolenihmw), have been considered on a case-by-case basis rather than through an established licensing framework: - Proposals typically involve direct negotiations with state governments - Land lease arrangements are often part of the discussion (e.g., the Rancho Verde proposal included a $1,000 annual lease payment) - Exclusive gaming rights may be negotiated as part of development agreements - Economic benefits such as infrastructure development and job creation are typically central to proposals

Limited Gambling Activities

For the limited gambling activities that may be permitted: - Small-scale gambling activities like bingo for church fundraising may be allowed without formal licensing - Commercial gambling operations are generally not licensed - No established fee structure exists for gambling licenses - No standardized renewal processes or conditions are in place

Online Gambling Licensing

Regarding online gambling operations: - Micronesia does not issue licenses for online gambling platforms - No legal framework exists for establishing online casinos or sportsbooks within FSM - No application process, fees, or requirements have been established for online gambling operations - Operating an online gambling business from within Micronesia is not permitted under current regulations

Rota Casino Gaming Commission

It's important to note that while there is reference to a "Rota Casino Gaming Commission" in some documentation, Rota is actually part of the Commonwealth of the Northern Mariana Islands (CNMI), which is a separate U.S. territory distinct from the Federated States of Micronesia. The CNMI has its own gambling regulations that do not apply to FSM.

Current Licensing Situation

In summary, Micronesia currently lacks: - A formal gambling licensing system at the national level - Standardized application processes for gambling licenses - Established license types for different gambling activities - Published fee structures for gambling licenses - Renewal procedures for gambling licenses - Specific eligibility criteria for license applicants Potential investors or operators interested in gambling operations in Micronesia would need to engage directly with individual state governments to discuss possibilities, as no standardized licensing framework currently exists.

Gambling Tax

Tax Rates for Gambling Operators in Micronesia

Currently, there is no national taxation system specifically targeting gambling operators in the Federated States of Micronesia. The country does not have a centralized or formal framework for taxing gambling businesses, whether land-based or online. Commercial gambling operations are virtually non-existent, and there are no published tax rates for different types of gambling activities.

Basis for Taxation

There is no established basis for gambling taxation, such as gross gaming revenue (GGR), turnover, or other metrics, at the national level.
Any minor gambling activities that occur, such as small-scale lotteries or bingo for fundraising, are typically regulated at the state level and are not subject to standardized national taxes.

Tax Reporting and Payment Requirements

There are no formal tax reporting or payment procedures for gambling operators at the national level in Micronesia.
States may impose their own requirements for charitable or fundraising gambling events, but these are not consistent and generally do not apply to commercial operators.

Tax Incentives, Exemptions, and Special Provisions

There are no national tax incentives, exemptions, or special provisions for gambling operators, as there is no formal gambling tax regime in place.
Any exemptions or special conditions would be determined at the state level and are typically limited to non-profit or charitable activities.

Summary Table: Gambling Operator Taxation in Micronesia

Type of Gambling	Tax Rate	Tax Basis	Reporting/Payment Requirements	Incentives/Exemptions
Land-based Casinos	Not applicable	Not applicable	Not applicable	Not applicable
Online Gambling	Not applicable	Not applicable	Not applicable	Not applicable
Charitable Gambling (e.g., bingo, raffles)	Varies by state (if any)	Varies by state	Varies by state	Possible exemptions for non-profit events

Prohibited Individuals

Age Restrictions

The minimum legal age for participating in state-regulated gambling activities in the Federated States of Micronesia is 18. This applies to activities such as lotteries and raffles. There are no specific national regulations for other forms of gambling, but the age limit of 18 is generally observed for any permitted gambling activities.

Identification Requirements

Operators of state-regulated gambling activities are expected to verify that participants are at least 18 years old, though there is no detailed national framework specifying identification procedures.
For any licensed gambling premises, entry by persons under the age of 18 is prohibited.

Prohibited Activities and Game Restrictions

There are no licensed land-based casinos operating in Micronesia, and commercial casino gambling is not permitted.
Online gambling platforms are not licensed or regulated within the country, and operating an online casino from within Micronesia is explicitly prohibited.
Permitted gambling activities are generally limited to state-sanctioned lotteries, raffles, and small-scale games such as bingo for charitable or fundraising purposes.
Commercial gambling activities such as blackjack, roulette, or slot machines are generally not allowed.

Advertising and Marketing Limitations

There are no comprehensive national regulations specifically addressing the advertising or marketing of gambling services.
Since there are no licensed commercial gambling operators, advertising of such services is effectively not permitted.
Promotion of offshore or unlicensed gambling services is not regulated, but these activities lack legal backing and may be subject to local restrictions.

Responsible Gambling Requirements and Player Protection Measures

There are no formal national responsible gambling requirements or player protection measures in place.
Due to the very limited scope of legal gambling, organized player protection programs, self-exclusion lists, or mandatory responsible gambling messaging are not established.
Players participating in offshore online gambling do so without local legal protections or recourse in case of disputes or problem gambling issues.

Geographic and Location Restrictions

There are no licensed casinos or commercial gambling venues anywhere in Micronesia.
Gambling activities, where permitted, are generally restricted to specific state-sanctioned events or venues, such as charity bingo in community centers or church halls.
Operation of gambling establishments is not allowed on a national level, and individual states may impose further location-based restrictions.

Timeline

Year/Date	Event
1983	First major proposal for offshore casino gambling in Pohnpei by foreign investors; ultimately not implemented.
1995	Renewed debate over casino gambling as international investors propose a large-scale resort and casino project in Pohnpei, sparking public and government discussion but no resulting legislation.
Late 1990s–2000s	Gambling regulation remains largely absent at the federal level; states retain authority to permit or restrict gambling activities, with some allowing limited forms such as bingo for fundraising.
2010s	Micronesia continues to lack comprehensive national gambling legislation; any regulation or permission for gambling activities remains decentralized and handled at the state level.
2020s	No significant changes to national gambling laws; Micronesia has no federal regulations or licensing for casinos or online gambling, and most forms of commercial gambling remain unregulated or prohibited.

Requirements

Software Certification and Technical Standards Requirements

There are currently no formal technical standards or software certification requirements for gambling operators in Micronesia, as there is no national regulatory framework overseeing gambling activities.
No official body exists to mandate independent testing, certification, or approval of gaming software or systems.
Operators cannot obtain local certification for Random Number Generators (RNGs), game fairness, or system integrity, as no such processes are established.

Data Protection, Privacy Measures, and Server Location Requirements

There are no specific data protection or privacy regulations tailored to gambling operators in Micronesia.
No requirements exist regarding the physical or logical location of gaming servers, nor are there rules on where player data must be stored or processed.
Operators are not subject to any local obligations for encryption, secure data transmission, or privacy compliance in the context of gambling operations.

Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

Micronesia does not impose any gambling-specific anti-money laundering or KYC requirements, as there is no national gambling regulator or legislative framework for such controls.
No technical or operational standards are in place mandating customer identity verification, transaction monitoring, or suspicious activity reporting for gambling operators.

Financial Reporting, Auditing Standards, and Record-Keeping Requirements

There are no prescribed financial reporting or auditing standards for gambling operators in Micronesia.
Operators are not required to maintain specific records, submit financial statements, or undergo independent audits related to gambling activities.
No technical obligations exist for the retention, security, or accessibility of gambling transaction data.

Technical Implementation Requirements for Responsible Gambling Tools

No technical requirements exist for the implementation of responsible gambling tools, such as deposit limits, self-exclusion, or reality checks, as there is no regulatory oversight in this area.
Operators are not mandated to provide player protection features or technical solutions for harm minimization.

Sources

Primary Regulatory Authorities

Federated States of Micronesia National Government - https://gov.fm (Official government portal; includes contact details for national ministries and departments)

Legislation Resources

FSM Code (National Legislation Database) - https://fsmlaw.org/fsm/index.htm (Official repository for national laws and regulations)