Thursday, 28 November 2013
Singapore to restrict remote gambling activities
SINGAPORE: Singapore authorities are moving to restrict remote gambling activities.
Remote gambling refers to gambling via the Internet or any communication device, such as a smart phone.
When in place, the proposed measures could be one of the most comprehensive undertaken by any jurisdiction.
Remote gambling sites are accessible anytime, anywhere, with some clearly targeting the Singapore market with proclamations of no levies. Singapore citizens have to pay a S$100 levy to enter the country's two casinos.
There are currently no specific laws to deal with remote gambling here, and there are concerns over its social impact.
Associate Professor Hannah Lim from Nanyang Business School’s Division of Business Law, said: "A lot of the Internet gambling websites that are unregulated, they have odds that are just practically fraudulent and we have to protect our own community."
An online survey of about 1,000 Internet users in Singapore showed that about a third had gambled remotely at least once in the past year.
Fifty-eight per cent are men. They are also relatively young -- 64 per cent are between the ages of 25 and 44, and 75 per cent spent up to two hours a week on remote gambling.
The most common forms are casino-type games, sports betting and poker.
Authorities said remote gambling operations can also become a source or conduit of funds for illegal activities and syndicated crime.
Second Minister for Home Affairs S Iswaran said: "These are very much in jurisdictions beyond Singapore.
"The integrity of the system, the risks they pose are well beyond our ability to control and therefore, we need to make sure that this is tightly controlled in the Singapore context."
Thus, new laws will be in place.
Gambling websites as well as payments to remote gambling operators will be blocked. Advertisements promoting remote gambling will also be prohibited.
Assoc Prof Lim said: "I think it's more comprehensive than any other jurisdiction has ever attempted. Many jurisdictions have started off at attempting to ban and some still do.
"Many states in the US still do ban Internet gambling, but they've never backed it up with technical measures and if you don't back it up with technical measures, it's not going to be effective.”
There may, however, be some exemptions to allow a limited form of remote gambling through a strictly-regulated authorised entity.
Mr Iswaran said authorities here will consider similar provisions carefully.
He elaborated: "We are not starting on the basis that there will definitely be a provision.
"But if at all there is to be one, we have to be very satisfied and our officials and authorities need to be convinced that first, it will be very tightly controlled -- that is, in terms of who can get access, how it will be managed, the integrity of the system and of course, for a very prescribed narrow range of products."
While the measures may ultimately not be foolproof, Mr Iswaran said they will impede access and send a clear signal on Singapore's regulatory stance.
"The signal in terms of our stance is very clear and I think potential operators and those who are minded to access our market will then pay heed to these provisions," he said.
Separately, the National Council of Problem Gambling together with the Social and Family Development Ministry and voluntary welfare organisations will step up its public education efforts on the ills of games that simulate gambling.
Mr Iswaran said: "The distinction between social gaming and online gambling is blurring, with some games on social media platforms closely modelled on casino-style games. These seemingly harmless games can desensitise youths to the dangers and ills of gambling."
It is estimated that the remote gambling market in Singapore could be worth some US$300 million, and it is expected to grow by 6 to 7 per cent annually.
Nothing is cast in stone yet. There will be a public consultation exercise over the next few weeks to get stakeholders to weigh in on the issue.
The new laws are expected to be in place by early next year.
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