In brief
The Gambling Control Act 2022 and the Gambling Regulatory Authority of Singapore Act 2022 were passed into law by the Singapore parliament on 11 March 2022 and came into effect on 1 August 2022.
The legislation has three key objectives:
- Addressing emerging trends and products associated with gambling
- Ensuring consistency in the regulatory treatment of the different products associated with gambling
- Enhancing social safeguards
The key changes introduced by the new laws are as follows:
- The definitions of ‘gambling’ and ‘betting’ were expanded to address existing and emerging products associated with gambling that were not previously included.
- The various regulations relating to gambling were harmonised into a single, combined framework.
- New laws and duties to protect vulnerable persons were introduced.
We elaborate further on these revisions below.
Expanded definition of gambling
The Gambling Control Act (GCA) updated the definitions of certain key terms, as the old definitions were found to be too specific and failed to capture emerging products associated with gambling in our modern society.
For example, the scope of ‘betting’ as defined in the now-repealed Betting Act 1960 only included horse-racing and other sporting events. However, there are, for example, emerging platforms that accept bets on the outcomes of e-sports and gaming tournaments, which would not be covered, and hence not considered as an offence, under previous legislation.
The GCA resolved this by amending the definition of ‘betting’ to include “the outcome of a race, competition, sporting event or other event or process”. This adoption of a technology-neutral stance ensured that the definition covered both existing and emerging gambling products.
Regulation of gambling
Under the GCA, all gambling activities are regulated under one of three regimes:
- The Licensing Regime
- The Class-Licensing Regime
- The Social Gambling Exception
Licensing Regime
The Licensing Regime replaces the various gambling permits and exemption regimes of the past.
Gambling products covered under the Licensing Regime include:
- Fruit machines in recreational clubs
- Singapore Pools’ products
- Gambling among members at private establishments such as recreational clubs and societies
Previously, private establishments were not required to apply for a licence in order to allow gambling on their premises. They were able to allow gambling as long as they met certain stipulated conditions.
Under the Licensing Regime, such establishments are now required to apply for a licence and undergo screening of key personnel in order to assess their eligibility to hold a gambling operator licence in Singapore.
Class-Licensing Regime
The Class-Licensing Regime was introduced to regulate gambling products assessed to be of a lower risk. Under this regime, designated gambling services may be provided without the need to apply for a licence from the GRA as long as the conditions set out in the following Minister’s Orders are complied with.
Gambling products covered under the Class-Licensing Regime include:
- Cause-related games of chance and lotteries
- Survey-related games of chance and lotteries
- Trade promotion games of chance and lotteries
- Fundraiser lotteries
- Remote games of chance
- Incidental games of chance and lotteries
- Mystery boxes
Gambling Control (Trade and Other Promotional Games and Lotteries – Class Licence) Order 2022
This Order governs cause-related games of chance and lotteries and survey-related games of chance and lotteries, effective from 2 August 2022. The Order will also govern trade promotion games of chance and lotteries from 1 February 2023. This includes any lotteries or lucky draws linked to surveys or promotional events, or gifts associated with entering into or participating in lotteries or lucky draws.
The Order imposes the following restrictions and requirements:
- Prohibition of any reference to or images of gambling activities (as listed)
- Information detailing the class licensee, rules and prizes (among other information) to be included in any publicity for the game and/or lottery (information requirement)
- Details on how prize-winners will be notified and how prizes will be distributed (prize-winner notification requirement)
- Special requirements for non-instant lotteries depending on whether the total prize value exceeds S$10,000 (special requirement for non-instant lotteries)
Gambling Control (Fundraisers – Class Licence) Order 2022
Effective from 2 August 2022, this Order governs fundraiser lotteries, including any gambling services to raise funds from the public for charitable purposes.
The Order imposes the following restrictions and requirements:
- All net proceeds to be used for one or more of the approved purposes
- Prohibition of any reference to or images of gambling activities (as listed)
- The information requirement, prize-winner notification requirement and special requirement for non-instant lotteries
Gambling Control (Remote Games of Chance – Class Licence) Order 2022
Effective from 15 August 2022, this Order governs remote games of chance, including electronic games that offer gambling services within their game platforms.
The Order imposes the following restrictions and requirements:
- Interactive games of chance that participants are entitled to play free of charge (Class 1 Licence):
- are prohibited from referring to or containing any gambling activities (as listed); and
- must ensure that any complimentary token awarded is restricted to unique use by each individual winner and not transferable to anyone else.
- All licensees of other interactive games of chance (Class 2 Licence) must take all reasonable steps to ensure that they do not provide a service to convert any prize, feature or complimentary token available in-game into money or a money equivalent.
Gambling Control (Minor Gambling – Class Licence) Order 2022
This Order governs gambling services provided during non-gambling events. This covers any gambling services provided during social functions (weddings, birthday celebrations, social dinners and dances, etc.), business events, live arts performances, religious ceremonies or rites or celebrations, and sporting events.
The Order imposes the following restrictions and requirements:
- Prohibition on exaggerating the connection between gambling services and the non-gambling-related event in promotional information or material
- Prohibition of any reference to or image of gambling activities (as listed)
- Prize-winner notification requirement
Mystery boxes
The GRA intends to publish a separate order to govern mystery boxes.
Social Gambling Exception
Social gambling activities are commonplace among many Singaporeans, and were not prohibited under previous legislation. With the changes introduced by the GCA, however, all forms of gambling not specifically authorised are now prohibited as unlawful gambling.
That being said, pursuant to the Social Gambling Exception provided for in the GCA, it will remain legal for Singaporeans to gamble with family members and friends when they meet up at each other’s private residences, provided that the activity:
- is conducted by an individual in premises that are either the individual’s home, or another individual’s home, in Singapore;
- has as participants only individuals who are members of the same family or who know each other personally;
- is substantially spontaneous, even though it may occur regularly, habitually or by arrangement between the individuals involved;
- is not promoted or conducted (i) by or for the private gain of any person not participating in the gambling or (ii) in the course of any business;
- is conducted so that the only way a participant in the gambling can make a profit or gain any other benefit as a result of the gambling is by winning; and
- is conducted in accordance with the requirements (if any) of any subsidiary legislation under the GCA.
Protection of vulnerable persons
Previously, more traditional forms of gambling were restricted and regulated by way of controls over their:
- Scope (for instance, gambling referred to activities such as horse-racing, poker, etc.)
- Accessibility (for instance, there were requirements applicable to gambling activities confined to places such as betting houses and casinos)
However, two significant trends have recently emerged in the gambling landscape.
Firstly, the boundaries between gambling and gaming have become increasingly blurred. Business models have been adapting to changing customer preferences and audiences by introducing gambling elements in products that were traditionally not perceived as gambling.
Secondly, the internet has made gambling products accessible from a user’s fingertips through the screens of mobile devices.
To keep up to date with these trends, the GCA has introduced new offences relating to not only underaged, but also excluded, individuals. This was done to address the pervasiveness of and accessibility to gambling products and related advertisements.
Safeguards for underaged individuals
Under the GCA, the minimum age for gambling will remain at 21 years old, except for gambling at Singapore Pools’ physical outlets, which will remain at 18 years old.
Furthermore, two criminal offences have been introduced:
- Underaged individuals are forbidden from gambling, regardless of whether or not the operator is licensed.
- Underaged individuals are forbidden from entering any gambling area, except where entry checks are not required.
Operators that allow underaged individuals to gamble, or allow such individuals to enter a gambling area, will be liable for fines or disciplinary action by the Gambling Regulatory Authority.
Safeguards for excluded individuals
Under the GCA, excluded persons now include individuals who are banned from entry by either the Commissioner of Police or the Gambling Regulatory Authority. This has also been extended to all tenants and occupiers on the Public Rental Scheme, which provides subsidised public housing for rent.
Such excluded persons will be prohibited from gambling or entering a gambling area across all platforms and locations. Operators that allow an excluded individual to gamble, or allow such individual to enter a gambling area, will be similarly liable for fines or disciplinary action by the Gambling Regulatory Authority.
Concluding remarks
Overall, the GCA should be viewed as a timely and welcome development, given recently emerging and continually evolving trends in gambling-related activities and the growing range of products in the market.
The GCA not only clarifies the kinds of activities and products that warrant regulation, but also provides enhanced safeguards for vulnerable persons.
As a business that is keen on pursuing innovative and engaging ways of interacting with your consumers, as well as promoting your brand through various media channels, navigating these new laws to ensure compliance may prove challenging.
If you wish to discuss the GCA and its implications for your business, please reach out to our team below or to your usual Reed Smith contact.
Reed Smith LLP is licensed to operate as a foreign law practice in Singapore under the name and style, Reed Smith Pte Ltd (hereafter collectively, "Reed Smith"). Where advice on Singapore law is required, we will refer the matter to and work with Reed Smith's Formal Law Alliance partner in Singapore, Resource Law LLC, where necessary.
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