The Apostolic Foundation Church in Palau says the introduction of casinos in the country will steal lives and prove detrimental to people's spiritual wellbeing.
Opposition to the casino plans has been expressed by a petition, boasting 1,500 signatories so far, which is circulating in schools, among church groups, NGOs and the general public.
The legislation on casinos is currently being discussed by congress.
Pastor Helgah Sharp from the Apostolic Foundation Church says it is taking a strong stand against gambling, to prevent it from taking lives.
"It will destroy families. It will destroy one's character and also it will not enrich one's life, just the opposite. We believe it will bring poverty to anybody that is drawn into this kind of gambling."
Helgah Sharp says research from the United States and Canada has shown people have committed suicide after becoming addicted to gambling and some have lost their properties after falling into debt.