Singapore Introduces Limited Online Betting

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Friday, October 7th, 2016 | Written by Stephen Smith

On October 1st, Singapore’s new regulation went into effect allowing two of the country’s non-profit organizations, Singapore Pools and Turf Club, to offer online betting. Winnings from these organizations are subsequently channeled to the Ministry of Finance’s Tote Board to help fund charitable and social causes, but the decision has still received fierce criticism from various interested parties. One such organization is the National Council of Churches (NCCS), which in a press release this week, stated:

“On the one hand, the Remote Gambling Act (RGA) criminalizes remote gambling, but on the other hand, the Government is legalizing some forms of remote gambling provided by authorized operators.. The council is particularly concerned about the adverse personal, familial and social impacts of online or Internet gambling – all of which have been well-documented.”

Gambling Background

In 2006, Singapore legalized casino gambling as a means of raising revenues, and boosting its tourism sector. The country quickly caught the eye of major gambling companies, with Resorts World Sentosa and the Marina Bay Sands both opening in 2010. The country’s two multi-billion dollar gambling destinations are full-fledged resorts that integrate gambling with other attractions, employ more than 20,000 people, and each year make up around 2% of the country’s GDP. In 2015, the small island also attracted an impressive 15.2 million tourists from all over the world.

While both of the casino resorts in Singapore initially thrived, there has been a major downturn in revenues in recent years. The corruption crackdown in China has led to less travel in the region with many of the VIPs in the Asian casino market now either afraid to spend money or facing criminal charges.

iGambling to Remain Viable

In light of its casino market’s recent downturn, the Singapore government had been examining ways in which to keep the industry economically viable by exploring other potential revenue streams, thus leading to it now allowing for limited online gambling. Singapore had previously taken a hard line stance against online gambling, and at the end of 2014 passed strict laws preventing residents from accessing online gambling sites, and only allowing social casino games that do not involve real cash spending to be played by its citizens.

Singapore has since rethought its previous decision, and in September the government announced that Singapore’s lottery company Singapore Pools Ltd and the Singapore Turf Club, which runs horse-racing in the country, would both be able to provide online gaming come October. Commenting on the policy reversal, Minister for Social and Family Development Tan Chuan-Jin explained:

“You can close down sites, but new sites will be set up, sometimes faster than you can close them down. It is a global market with a lot of money to be made, and the worst thing is that it is unregulated and there are no safety measures in place.”

Casinos Have Applied for Licenses

Hearing this news, the Resorts World Sentosa and Marina Bay Sands both submitted applications to offer iGambling products. Most who are familiar with the casino industry and regulations in Singapore feel confident that the government will eventually approve the applications, as historically, they have been willing to work with the casinos to keep them in business and people in the city-nation employed.

There is still, however, a chance that Singapore might decline the applications, as the circumstances surrounding Singapore Pools Ltd and the Singapore Turf Club are dramatically different than those surrounding the casinos. The two groups are both nonprofits and give much of their earnings to charities and public works projects, which is drastically different than the two for-profit casinos.

Even if Singapore does green light Resorts World Sentosa and Marina Bay Sands, gaming enthusiasts should not expect to have access to the full range of online casino products available elsewhere. Singapore Pools Ltd and the Singapore Turf Club are both being allowed to provide online betting and lottery drawings, but with restrictions placed upon how much each user can actually bet. It’s likely that the casinos will face similar constraints, and may be restricted by the number and types of games that they can offer.

With limited online gambling launched by Singapore Pools Ltd and Singapore Turf Club sites this month, it’s likely that a decision on online casino gambling licenses for the for-profit casinos will be reached soon. We will keep you posted on the latest developments of this story when there are updates to report.