--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
(Adds background on casinos' gross gaming revenue, in the fourth
paragraph.)
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.
