Bloomberg News

Singapore Collects S$93 Million in 1st-Half Casino Entry Levies

July 10, 2012

Singapore Collects S$93 Million in 1st-Half Casino Entry Levies

Developments south of Marina Bay Sands, including Gardens by the Bay, left, and the Supertrees, right, are seen from the SkyPark atop Marina Bay Sands in Singapore. lured tourists. Photographer: Sam Kang Li/Bloomberg

Singapore collected S$93 million ($73 million) from entry levies placed on locals visiting the city’s two casinos in the first half, according to Josephine Teo, minister of state for the Finance Ministry.

The entrance fee of S$100 a day or S$2,000 annually from citizens and permanent residents amounted to S$195 million in 2011, Teo said in Parliament. The government also collected more from the two casino-resort operators, Las Vegas Sands Corp. (LVS:US) and Genting Singapore Plc (GENS), with the net gain in tax revenue amounting to S$900 million in fiscal 2010 and S$1.1 billion the following year, she said.

“The casino operators have made more money, but at the same time it contributed to our tax revenues,” Teo said. “Through these tax revenues, the government is able to provide support to Singaporeans in many areas and expand our resources.”

Teo’s comments, in response to a query from a lawmaker, comes as the government is seeking public feedback to strengthen its Casino Control Act to further control criminal activities, improve social safeguards and tax administration.

The proposed changes include limiting visits by “local, financially vulnerable patrons who visit the casinos frequently” and raising the maximum penalty imposed on casinos that flout the law to 10 percent of gaming revenue from the existing limit of S$1 million, according to a document posted on the government’s public consultation website.

The government has more than doubled its spending in the past two years to contain problem gambling, Teo said today. The levies aren’t directly “ring-fenced” to finance such programs, she said.

Exclusion List

About 93,000 people are on a so-called exclusion list where they’re prevented from entering the two casinos, she said. Punters who make six to 10 casino visits a month are considered “high frequency gamblers” and are estimated to number 4,000 to 6,000, the Sunday Times reported, citing Chan Chun Sing, acting community development minister.

Singapore added 15,000 citizens and residents to its list of 28,000 people banned from the city-state’s two casinos in June amid concerns that low-income gamblers are betting larger amounts at the gaming resorts.

The island-city dropped its four-decade ban on casinos to boost tourism, with Las Vegas Sands and Genting Singapore spending more than $10 billion on two gaming resorts that opened in 2010. Gross domestic product growth, visitor arrivals and visitor spending reached record highs that year.

To contact the reporter on this story: Sharon Chen in Singapore at schen462@bloomberg.net

To contact the editor responsible for this story: Linus Chua at lchua@bloomberg.net


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • LVS
    (Las Vegas Sands Corp)
    • $64.0 USD
    • -2.51
    • -3.92%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus