Singapore: Tougher Protections

...stricter requirements on premium players seeking to borrow money for gambling and higher penalties for illegal junket activity at the casinos...


...impose limits on the number of times "financially vulnerable" locals can visit the casinos and give new powers to statutory bodies for policing casino operations and managing gambling addiction...

Critics had opposed the casinos, fearing a rise in social problems such as organized crime and gambling addiction. To contain the impact, the government imposed casino-entry levies, banned advertising that targeted locals and rolled out programs to discourage heavy gambling.

In June, the government said it was widening a casino-entry ban for citizens who are bankrupt or reliant on government aid, with some 43,000 locals to be barred by August 1.

2nd UPDATE: Singapore Plans Tougher Rules on Casinos, Local Gamblers

--Singapore proposes stricter rules and enforcement on casino operations, local gamblers

--Proposals include stiffer fines for violations by casino operators, tougher casino-entry controls for locals

--The government will seek public feedback; proposals to be debated in parliament at the end of the year


By Chun Han Wong

SINGAPORE--The Singapore government Friday proposed stricter rules and enforcement for casino operations and local gamblers, as part of efforts to improve its regulatory regime and contain gaming-related social ills.

The wide-ranging proposals--which include stiffer disciplinary penalties for casino operators and tougher casino- gambling restrictions for locals--came just weeks after authorities in Singapore stepped up measures to tackle gambling addiction by barring more "financially vulnerable" people from Singapore's two casinos.

Under the plans, authorities may raise the maximum fine on casino operators for disciplinary breaches to 10% of their gross gaming revenue, instead of the current cap of one million Singapore dollars(US$788,500), according to a document detailing the proposals seen by Dow Jones Newswires.

Analysts have estimated the island state's two casinos--Las Vegas Sands Corp.'s (LVS) Marina Bay Sands and Genting Singapore PLC's (G13.SG) Resorts World Sentosa--each generated roughly $3 billion in gross gaming revenue last year.

Other proposed revisions to the six-year-old Casino Control Act include stricter requirements on premium players seeking to borrow money for gambling and higher penalties for illegal junket activity at the casinos, the document showed.

Junket operators are middlemen who bring high-spending gamblers to the casinos, issue them credit and collect on debts in exchange for commissions. Singapore regulators have licensed just two small junkets so far.

Authorities may also impose limits on the number of times "financially vulnerable" locals can visit the casinos and give new powers to statutory bodies for policing casino operations and managing gambling addiction, according to the document.

In a statement Friday, the government said the proposed legislative changes would "ensure that the casino regulatory regime continues to keep pace with developments in the industry and international best practices."

Authorities will seek public feedback on the proposals Monday in a consultation process scheduled to end August 6, according to the statement. The proposed amendments will be discussed in parliament at the end of the year.

Other proposals include tougher definitions of casino-related crimes, and streamlining administrative and taxation processes regarding the casinos, the document showed.

Authorities, however, don't plan to adjust casino-entry levies for now, according to the document. The government currently taxes locals who enter the casinos S$100 a day and S$2,000 a year.

Singapore dropped a longstanding ban on casino gambling in 2005, paving the way for its first casinos to open in early 2010 as the island state sought to spice up its reputation as a travel destination and reap more tourism dollars.

Critics had opposed the casinos, fearing a rise in social problems such as organized crime and gambling addiction. To contain the impact, the government imposed casino-entry levies, banned advertising that targeted locals and rolled out programs to discourage heavy gambling.

In June, the government said it was widening a casino-entry ban for citizens who are bankrupt or reliant on government aid, with some 43,000 locals to be barred by August 1.

Write to Chun Han Wong at chunhan.wong@dowjones.com.

http://www.nasdaq.com/article/2nd-update-singapore-plans-tougher-rules-on-casinos-local-gamblers-20120707-00003