Singapore Plans Tougher Rules on Casinos, Local Gamblers

By Chun Han Wong

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

Under the proposals, authorities may raise the maximum fine on casino operators for disciplinary breaches to 10% of gross gaming revenue, instead of the current cap of 1 million Singapore dollars (US$788,500), according to a document detailing the proposals seen Friday by Dow Jones Newswires.

Other proposed revisions to Singapore's Casino Control Act include higher penalties for illegal junket activity at the city-state's two casinos -- Las Vegas Sands Corp.'s (LVS) Marina Bay Sands and Genting Singapore PLC's (G13.SG) Resorts World Sentosa -- and stricter requirements on premium players seeking to borrow money for gambling, 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.

Authorities may also impose limits on the number of times "financially vulnerable" locals can visit the casinos, 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 Aug. 6, according to the statement. The proposed amendments will be tabled 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. The government currently taxes locals who enter the casinos S$100 a day and S$2,000 a year.

The proposals come just weeks after the government said it would bar about 15,000 more citizens and permanent residents from entering its casinos, widening an existing entry ban on 28,000 people who are bankrupt or are dependent on government aid.

Write to Chun Han Wong at [e-mail]