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Why does Singapore have the Casino Entry Levy?

Singapore's casino entry levy debuted in 2006 alongside the arrival of integrated resorts (IRs). The Casino Control Act, passed that same year, paved the way for these resorts with the inclusion of the entry levy to discourage excessive gambling. Initially, a day pass costs $74.41 (S$100), and an annual pass costs $148.82 (S$2,000). However, by 2010, $145 million (S$195 million) was collected in levies, suggesting significant interest despite the fee. This result was a levy increase in 2018, aiming for stronger deterrence: $111.61 (S$150) for a day pass and $2232.25 (S$3,000) annually.

We know the history; let’s find out what it actually is and what it was introduced to do:

What is a casino entry levy?
While Singapore currently stands as the only country with a fully operational, nationwide system, it is important to note that the concept is not unique to Singapore.

Sri Lanka charges a flat $100 fee to both locals and foreigners entering any casino, aiming for broad deterrence. Japan is considering a $13.34 (¥2,000) levy targeting both citizens and residents, potentially limiting gambling participation. The Philippines offers a patchwork approach, with some individual casinos implementing entry fees or minimum spending requirements. Vietnam has proposed entry fees for specific casino projects, but nationwide implementation remains uncertain.

Who has to pay the Singapore casino entry levy?
In Singapore, only the locals pay to play. Citizens and residents fork over $111.61 (S$150) daily or $2232.25 (S$3,000) yearly to enter casinos. This leaves tourists free to play while emphasizing responsible gaming for residents. It is crucial to note that age limits and other restrictions might still apply.

Reasons Singapore implemented a casino entry levy
The following are some of the reasons Singapore put the casino entry levy in place.

Reduce the amount of time spent gambling
Dissuading locals from gambling is the top reason why the Singapore government thought to implement entry levies. Other measures to reduce the amount of gambling include self-exclusion programs being offered by the best online casinos in Singapore, support groups and professional help, and, you guessed it, casino entry levies for walk-on or brick-and-mortar casinos in the following three ways:

  • Financial barrier: The levy creates a financial barrier to casual gambling, potentially discouraging people from entering casinos on a whim.
  • Increased awareness: Public discussions surrounding the levy can raise awareness about gambling and encourage responsible behavior.
  • Revenue for responsible gambling initiatives: The collected levy can be used to fund programs and services that support players and promote responsible gambling practices.

Helps with revenue generation
With the United States –thanks to Las Vegas, Nevada– and Macau, China being the world’s largest gambling industries, casino gambling in Singapore only having found a foothold in 2006 is still only considered to be on the rise. As a result, how much is being generated pales in comparison, and the introduction of entry levies helps the casino duopoly generate extra revenue.

Records show that the entry levy collected as far back as 2011 was in excess of $145 million (S$195 million), with the highest ever recorded being $93 million (S$125 million) in 2018. Monies that can be reinvested into other programs to ensure safe and responsible gambling for locals and tourists alike.

Control the number of people who frequent casinos
The entry levies required by the Casino Control Act aim to reduce the number of people, locals to be precise, that use the casino facilities. This is done in the hopes that it becomes one extra barrier when they consider visiting the casino to enjoy the gaming offerings.

However, the numbers show that the introduction of these levies has not worked as planned, as there has not been much of a drop in the number of people who visit these casinos. The effect can even be said to be negative as it casts a worrying shadow on the Singapore gambling industry, one that might keep tourists away and their tourism numbers down. Lastly, while it might reduce foot traffic, it sure encourages high rollers to frequent the casino, and seeing as they are most likely to spend huge, they are most in need of protection from problem gambling.

Conclusion
Singapore’s casino entry levy serves to deter excessive gambling from the locals without clamping down on its wholesome gambling experience tourists around the world have come to enjoy. It does so by reducing foot traffic in the casino with the added benefit of revenue generation. There are still mixed receptions as far as the initiative is concerned, with many people believing that it currently does not do enough.

 

 

 

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READER COMMENTS BELOW

4 Responses to “Why does Singapore have the Casino Entry Levy?”

  • Encourage to gamble:

    Once you have paid to enter, you will be highly incentivised to stay longer and gamble more. Tio bo? Any idiots pay to enter and leave a minute later?

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  • rice:

    Actually,entry fee is total B$.
    What is the fee compared to the risk money a sg customer is willing to risk?
    This is just to bar non-gamblers from entering to look-see.

    Unless entry fee for sgs is $1000K per day?
    Why not even $2K?

    Bull crappie really.

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  • Kopi kaki:

    Anyone here buy Toto.
    Next draw $10M.
    Just want to share this observation.
    Last time,until some months ago,SINGAPORE POOLS always put up advert saying Prize money Snowballed to $xxx even before current draw was out.
    Strange.
    Nowadays,they stopped putting up such posters.

    I sincerely think that SINGAPORE POOLshould be run by a private company like MBS or Genting.
    At present,the Operator is also the Regulator and this is not correct.
    At least have 2 operators to compete.
    Singapore Pools is a monopoly and can dictate whatever they want.
    With 2 or more competing operators,sgs who punt can have wider choices.
    Most punters are ordinary sgs hoping to be the lucky winner/s .
    When prize money keeps snowballing,the “operator” can collect more “revenue” as punts become bigger.

    Too many times,there is only one sole winner as compared to the past when prize money was big.

    Then it was only 50 cents per block ordinary bet and $3.50 for system7.
    Worse is a punter must have 6 numbers correct to win unlike in the past.
    Even USA Super Sweep only needs 5 numbers to win 1st prize.

    SINGAPORE POOLS POW CHIAK ONE.
    Should have competitors bid for RIGHTS TO OPERATE.
    Afterall,the government allows legal private casinos like MBS and Genting.
    Let MBS and Genting compete for rights with@Singapore Pools.
    MBS AND GENTING ARE FT(FOREIGN TALENTS) like how Government brings in FTs to compete with Sg-PMETs .

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  • Toto player:

    @Kopi Kia

    Very correctly said.
    Monopoly is bad for consumers.
    System7 at $7 from $3.50 is daylight robbery .
    We ought to have competitors to let consumers have fairer choices.
    Also go back to 5 numbers instead of six.

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