The ruling Kuomintang, who dominate the legislature, pushed through the law allowing the offshore islands to build casinos only if they are approved by residents in referenda.

President Ma Ying-jeou, who took office in May, must sign the bill before it takes effect.

Outside parliament, dozens of demonstrators, many of them Buddhist monks and nuns, braved chilly winds and staged a sit-in protest.

'The bill is sure to pollute the people's minds,' a protester said.

The Kuomintang government said the move would help the poor offshore islands by attracting tourists. -- AFP