Singapore's casinos experienced an unexpected financial boost between April and May 2024, collecting an additional $4.4 million in entry levies due to an administrative lapse. The Ministry of Home Affairs (MHA) disclosed this surprising development, which has led to a thorough review of existing regulations and proposed legislative amendments to the Casino Control Act.
The entry levies for Singapore citizens and permanent residents to enter casinos were raised in April 2019 to $150 daily or $3,000 annually, aiming to deter casual and impulse gambling. However, the MHA overlooked the expiry of this order on April 4, 2024, causing the levies to revert to their previous lower rates of $100 daily and $2,000 annually. This oversight lasted until May 7, 2024, when the higher rates were reinstated.
Financial Impact and Government Response
During this period, casinos collected approximately $4.4 million more than they should have under the reverted rates. The MHA has acknowledged the mistake and assured the public that steps are being taken to prevent such lapses in the future. "We have tightened our processes to avoid a repeat of such an incident," the ministries stated in a press release.
Proposed Legislative Changes
To address this issue, the MHA introduced the Casino Control (Variation of Entry Levies) Order 2024 on May 8, 2024, to prospectively restore the daily levy to $150 and the annual levy to $3,000. Additionally, the Casino Control (Amendment) Bill was introduced in Parliament by Sun Xueling, Minister of State for Home Affairs and for Social and Family Development, to regularize the higher entry levies collected during the lapse period.
Strengthening Casino Regulations
The proposed amendments to the Casino Control Act include several key changes aimed at tightening casino operations and enhancing regulatory oversight:
Family Visit Limits: Breaching a Family Visit Limit, which restricts the number of times a person can enter a casino, will become a punishable offense. This measure is intended to protect individuals whose gambling behavior has caused harm to their families.
Regulatory Authority: The Gambling Regulatory Authority (GRA) will extend its regulation of casino activities to cover betting and lotteries, beyond traditional games of chance. This change is part of a broader effort to future-proof gambling regulations in Singapore.
Approval of Shareholders: The powers to approve main shareholders of casino operators will be transferred from the GRA to the Minister for Home Affairs, ensuring a whole-of-government approach to the development of integrated resorts.
Addressing Problem Gambling
The increased entry levies are part of Singapore's broader strategy to deter casual and impulse gambling. Since their introduction in 2019, the higher levies have been effective in reducing the number of casual gamblers. The government remains committed to monitoring the impact of these levies and making adjustments as necessary to protect vulnerable individuals and families.
Future-Proofing Gambling Regulations
In addition to addressing the immediate issue of the levy lapse, the proposed legislative changes aim to future-proof Singapore's gambling regulations. The GRA will be empowered to approve new betting instruments and gaming software, reflecting the evolving nature of the gambling industry. This proactive approach ensures that Singapore's regulatory framework remains robust and adaptable to emerging trends and technologies.
The $4.4 million collected in additional entry levies between April and May 2024 highlights the importance of vigilant regulatory oversight in the gambling industry. The MHA's swift response and proposed legislative changes demonstrate the government's commitment to maintaining a fair and responsible gambling environment in Singapore. By tightening processes and future-proofing regulations, Singapore aims to continue its effective management of casino operations and protect its citizens from the potential harms of gambling.
