Public Consultation on Proposed Amendments to Laws Governing Gambling Activities
$5,000 Welcome Bonus
The Ministry of Home Affairs is conducting a public consultation on proposed amendments to the laws regulating gambling in Singapore. The amendments are aimed at addressing two recent trends in the gambling landscape. They are: Advancements in technology and the increase in online gambling. New business models have introduced gambling elements in products that are not traditionally not related to gambling, e.g. chance-based loot boxes in video games.
Proposed changes target four main areas. They include amending the definition of "gambling", exempting physical social gambling among family and friends, providing guidelines for certain games with gambling elements and streamlining penalties across the different gambling legislation.
MHA proposes a consistent definition of the term "gambling" across the various gambling legislation. The proposal is aimed at ensuring that such a definition is technology-neutral.
MHA proposes a definition of gambling.
"Gambling" means betting, gaming and participating in a lottery. Public Consultation on Proposed Amendments to Laws Governing Gambling Activities is being held.
The proposed definition of gambling is broader in scope than the existing definitions in the BA, CGHA and Remote Gambling Act. It may hinder Singapore's plans to position itself as a leading esports hub in Asia. MHA will evaluate various activities and products and carve out some of them from the definition.
Social gambling is not explicitly permitted under existing gambling legislation. MHA proposes to explicitly permit physical social gambling among family and friends under current legislation, subject to conditions that safeguard against criminal exploitation. RGA currently prohibits games of chance involving payment and the chance to win money or money's worth.
Public Consultation on Proposed Amendments to Laws Governing Gambling Activities proposes that physical forms of social gambling are exempted if all the following criteria are met. The gambling activity is not for the private gain of any person other than the extent of the game's winnings. It is conducted in enclosed areas of private residence, provided that the participants are invitees of owner/tenant.
Public Consultation on Proposed Amendments to Laws Governing Gambling Activities is held. The primary purpose of the gathering is for a social occasion and there is a bona fide social relationship among participants. Gifting is not promoted or conducted for the purposes of trade or business. It is conducted in enclosed areas of private residence, provided that the participants are invitees of owner/tenant.
There is a consultation on amendments to the law governing gambling activities. It is unclear what the distinction between social gambling and gambling for the purposes of trade or business is. MHA's primary concern is with syndicates seeking to exploit the exemption to conduct illegal gambling.
MHA will evaluate various products to determine if they should be regulated as gambling activities. MHA is concerned that arcade games and claw machines can have elements of chance. They also worry that high value items such as smart phones and game consoles offered as prizes for the games could induce gambling behaviour. The solution is to introduce a prize cap of S$100 for mystery boxes, arcade game machines and claws.
MHA is concerned about the possibility of gambling in arcade games and claw machines. They are concerned that arcade and arcade machines offer high value prizes. MHA also believes that the arcade game and the claw machine offer prizes such as smart phones as prizes could induce gambling behaviour.
MHA's proposal to ban arcade games and claw machines is sensible. It is unclear whether arcade and other games without elements of chance would be subject to the S$100 prize cap. Trading card games such as NBA trading cards or Magic: The Gathering could be considered mystery boxes and banned. Who is to determine the value of the prize to begin with?
There is a public consultation on the proposed amendments to the law governing gambling activities. Online games of chance offer virtual prizes. There is no in-game monetisation facility that allows players to exchange the virtual prize for real-world money.
MHA proposes to fine tune the regulatory framework in two respects. It seeks to impose conditions on the transfer of virtual items out of the online gaming environment to third party platforms. In-game monetisation facilities for free-to-play games would be allowed. Online games of chance must be conducted by a business organisation for the purposes of promoting the sale of a product. There must not be any stakes involved in the game. The business organization must make no profits from the games. The games Poker, Baccarat, Mahjong, Roulette and Fishing cannot form the subject matter of an online game of chances.
MHA proposes to impose conditions on the transfer of virtual items out of the online gaming environment to third party platforms. It also proposes in-game monetisation facilities for free-to-play games subject to certain safeguards. The safeguards include that the business organisation conducting the game of chance must not derive any profits from it. The game cannot involve any game, method, device, scheme or competition that has already been declared to be a game or a mixed game. and it cannot be in violation of existing gambling legislation. For instance, Poker, Baccarat, Mahjong, Roulette and Fishing cannot form the subject matter of an online game and there must be no stakes involved.
There is a public consultation on the proposed amendments to the laws governing gambling activities. MHA proposes to harmonise the regulatory approach towards all types of gambling. It proposes a three-tier penalty structure for punters, agents and operators involved in illegal gambling across all forms of the gambling activity.
MHA proposes to enhance the penalties for repeat offenders who facilitate or operate illegal gambling services. The penalties will not be increased for punters of illegal betting services as MHA intends to focus its enforcement efforts on illegal agents and operators. It remains to be seen whether illegal remote gambling activities will attract more severe sentences. The proposed three-tier penalty framework is adapted from the current penalty structure for remote betting activities. Singapore courts will take guidance from existing sentencing precedents when applying this penaltyframework across other forms of gambling.
Public Consultation on Proposed Amendments to Laws Governing Gambling Activities is being held. An agent who facilitates others to gamble illegally is to be liable to a fine of not less than S$20,000 and not more than $200,00. A repeat offender is liable for a maximum fine and imprisonment not exceeding ten years.
The proposed amendments to the law governing gambling in Singapore are a welcome update to current law. Clarifications should be sought from MHA on certain amendments. For example, representations should make it clear what products fall outside the definition of gambling and what falls within the scope of "facilitating" gambling. Clarity should also be asked on the effect of the changes to social gambling on overseas operators.
Public Consultation on Proposed Amendments to Laws Governing Gambling Activities is being held. Edina Lim and Yong Yi Xiang are writing the Client Update.
