Singapore to Restrict Remote Gambling

The Ministry of Home Affairs of Singapore (MHA) recently issued a public consultation paper seeking feedback on its proposals to restrict remote gambling in Singapore. Whilst the provision of gambling is prohibited in Singapore under the Common Gaming Houses Act and the Betting Act (unless specifically permitted by way of a licence or exemption), these laws do not expressly apply to remote gambling as they were enacted before the internet era.

The underlying concern expressed in the consultation paper was that remote gambling, which relies on the internet, telephone and other communication technologies to facilitate gambling, is exploding exponentially, particularly with the advent of smartphones and other mobile devices. Remote gambling may be cause of even greater concern than terrestrial gambling as it is easily accessible anytime and anywhere in a society that is increasingly tech-savvy. Studies have shown that the nature and design of the games (in particular casinostyle online games) lend themselves to repetitive play and addictive behaviour. Remote gambling operations may also become a potential source or conduit of funds for illegal activities and syndicated crime.

The key proposals raised in the public consultation are set out below:

• As an extension of Singapore’s current approach to gambling, it is intended that the existing laws governing terrestrial gambling will be expressly extended to remote gambling. Remote gambling will not be permitted unless specifically allowed for by way of an exemption or licence. The MHA is also considering whether to allow an exemption for regulated entities to provide remote gambling and if so, the nature of provisions for a tightly controlled exemption regime with constraints on the type of operator and the imposition of stringent social safeguards.
• It is also intended for new laws to be introduced to regulate and provide for enforcement powers against facilitators, intermediaries and providers of remote gambling services. Measures will be put in place to block access to gambling websites, block payments to remote gambling operators and prohibit advertisements promoting remote gambling.
• The distinction between social gaming and online gambling is also blurring with the increasing popularity of casino-style games on social media platforms. Such casino-style social games may desensitise youths to the dangers and ills of gambling. Public education initiatives to raise awareness of the risks involved in remote gambling and gambling simulation games will be strengthened and intensified to ensure that social gaming and online gambling remain in separate spheres.

The MHA intends to study the experiences of other jurisdictions in respect of online gambling. It was noted that there is a wide spectrum of regulatory approaches taken by different countries. While countries such as France and the United Kingdom have an open remote gambling market permitting licensed operators to offer a wide range of remote gambling products, other countries such as Hong Kong and Norway have taken a more restrictive approach to remote gambling by allowing one or two operators to offer a small number of products, subject to strict regulations and social safeguards.

 

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