Voters were worried about crime and environmental degradation on the sparsely populated archipelago, said Shih Chao-hwei, a convener of the Anti-Gambling Legalisation Alliance, which had called for a strong No vote.
"They didn't want their beautiful homeland to be spoiled," Shih said. "Now you can leave your doors unlocked."
Illegal gambling is rampant in Taiwan and some of it would have moved above ground to Penghu if the casinos had been approved, analysts said. Chinese tourists, allowed to visit once forbidden Taiwan since last year, had also been expected to visit the casinos.
Hotels and restaurants in Penghu would also have prospered if the gamblers had done well, said Daniel Soh, an economist with Forecast Ltd in Singapore.
But other analysts had cautioned against expecting easy winnings because of the global economic downturn.
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