Govt reviewing non-casino gambling regulation

UPDATED on Friday, 11pm: Adds response of ministers to debate on the casinos.

Government has begun a review of the regulatory framework and social safeguards for gambling at online channels and venues other than casinos, Second Minister for Home Affairs (MHA) and Trade and Industry (MTI) S Iswaran said on Friday.

Speaking in Parliament for the second day about Singapore’s gambling rules, Iswaran noted that online gambling, including gambling on social media platforms and mobile devices, is growing in many countries.

He said that the MHA will study developments in countries such as Australia, UK and the U.S., and Singapore’s own context to draw up a framework to address online gambling.

“Our objective remains the same, which is to preserve our values of thrift and hard work, and protect society, especially the vulnerable, from the potential harms of gambling,” he said.

Members of Parliament Lam Pin Min, Zainal Sapari, Denise Phua, Intan Azura Mokhtar and Desmond Lee had earlier expressed concerns about the safeguards for other forms of gambling beyond the casinos, such as jackpot rooms, and the emerging trend of online gambling.

Proposed amendments to Singapore’s law governing casinos were heavily debated in Parliament on Thursday as several members pushed for stronger curbs.

In response to questions about visitorship trends to casinos, Iswaran disclosed that the number of local visitors to casinos declined from 2010 to last year and continued to fall this year.

“This trend suggests that the novelty factor is wearing off and our local market is maturing,” he noted. “This downward trend is also reflected in the quantum of entry levies collected.  From 2010 to 2011, the total entry levies collected fell from $216m to $195m.

It is estimated that Singaporeans and permanent residents comprise around 25 per cent to 30 per cent of all casino visitors in Singapore.

Meanwhile, Acting Minister for Social and Family Development (MSF) Chan Chun Sing addressed issues and queries raised by Members of Parliament (MP) regarding current and proposed controls on gambling at casinos.

Chan said that his ministry is open to studying suggestions by MPs and he acknowledged concerns that visit limits to casinos could lead to an increase in gambling intensity.

“When it comes to gambling or problem gambling, frequency and intensity tend to go hand in hand. We will monitor the situation closely,” he continued.

On exclusion orders, Chan said that there has been a noticeable rise in the number of people seeking help for gambling addiction. As of October, 130,000 persons are excluded under the National Council on Problem Gambling (NCPG) Casino Exclusion Measures.

Of the 130,000, 85,000 are on self-exclusion while 43,000 are on Third-Party Casino Exclusion. The remaining 1,200 are on Family Exclusion orders.

Non-constituency Member of Parliament (NCMP) Gerald Giam of the Workers’ Party on Thursday pressed for an expenditure limit in addition to a visit limit.

The Casino Control (Amendment) Bill presented for second reading on Thursday and again on Friday would let families or third parties to apply to limit the number of visits to the casinos by a gambler within  given month.
 
Noting that visit limits may inadvertently increase a patron's gambling intensity during his allotted visits, Giam said, "To mitigate this risk, I propose that an Expenditure Limit order be imposed together with the visit limit. Once the expenditure limit is reached, no more bets may be placed, even if the visit quota for the month has not been reached.”
 
Members of the ruling People's Action Party (PAP) urged more restrictions. MP for Pasir Ris-Punggol GRC Zainal Sapari went as far as suggesting that all Singaporeans be barred from Singapore’s two casinos.
 
"We should… be more draconian by totally banning Singaporeans from entering the casino, as what is being done by Vietnam where local are prohibited from entering casinos," Zainal said. "While it is true that gamblers will go the extra mile to do so, it takes more effort for them to travel to another country just do so as opposed to having the option of doing so quite easily in our country.”
 
If not a total ban, the extension of credit to all Singaporean players should be prohibited, he said. Currently, casinos can extend credit to Singaporeas and non-Singaporeans who are premium players.

MP for Marine Parade GRC Seah Kian Peng said that based on a survey of some 133 residents, grassroots leaders and colleagues, only about one fifth feel that current safeguards are enough and hence the bill needs to reflect strong restrictions. He said almost 60 per cent feel that it should be easier for people to exclude family members.

Seah noted that of 64,064 self-exclusions as of the end of May this year 13 per cent are Singaporeans and permanent residents, showing that the number of Singaporeans who are excluded is actually small.

Targeting vulnerable groups
 
Second Minister for Home Affairs (MHA) and Trade and Industry (MTI) S Iswaran who presented the amendments said it was timely to review the Casino Control Act passed in 2006, as agencies have gained practical experience of regulating casinos over the past two years.
 
With regard to social safeguards, Iswaran said that while the existing set of social safeguards had worked well for most Singaporeans, there was a need for a complementary set of targeted measures to address the more vulnerable groups.
 
"In addition to issuing exclusion orders, the National Council on Problem Gambling (NCPG) may now also impose visit limits on financially vulnerable locals who visit the casinos frequently," he said.
 
The Ministry of Social and Family Development estimates that some 4,000 to 6,000 locals could fall within this cateory of persons requiring more targeted intervention. The visit limit regime is expected to be rolled out by the middle of 2014.
 
Giam also raised concerns that the visit limit may be used as a substitute for an exclusion order -- instead of taking out an exclusion order, parties may go for the soft option of a visit limit.
 
On family exclusion orders, Iswaran said that the existing casino exlusion regime will be enhanced to improve its responsiveness and efficacy.
 
The powers of NCPG's Committee of Assessors will be enhanced. Provisional family exclusion orders can be made if there is a need to act urgently to protect the family from further harm.
 
"The Committee will also be empowered to issue a family exclusion order in the event that the family member with a gambling problem cannot be located or is uncooperative," Iswaran said.
 
Raising financial penalties
 
Currently, the Casino Regulatory Authority (CRA) is empowered to take disciplinary action against casino operators for regulatory breaches. These disciplinary actions include letters of censure, financial penalties of up to $1 million and the suspension or termination of the casino license.
 
New amendments proposed will also raise the maximum financial penalty which may be imposed in the event of serious breaches, from the current $1 million to 10 per cent of the casino's annual gross gaming revenue. Both casinos in Singapore raked in a total of close to $7.3 billion last year.
 
"This enhanced financial penalty will complement CRA's existing powers to take disciplinary action including the authority to vary, suspend or terminate the casino license," Iswaran said.
 
Other opinions voiced during the debate includes concerns on reducing the stigma of gambling.
 
Nominated MP (NMP) Eugene Tan raised a question on whether a robust regulatory regime might be normalising gambling.
 
"There is a good chance, given the easy availability of legalized gambling in Singapore, that the social attitudes towards gambling might become more lax. Once that happens, we would have sown the seeds of more problems down the road," Tan said.
 
Giam also suggested extending entry levies to all foreigners who are in Singapore to work or study and Long Term Visit Pass holders as they are part of the community and often, married to Singaporeans.