Legislation

Casino Control Bill 2006 (B3/2006)

The Casino Control Bill 2006 (the ‘Bill’) was introduced in Parliament on 16 January 2006. The Bill provides for the establishment of a new statutory body to be known as the Casino Regulatory Authority of Singapore (the ‘Authority’), and the operation and regulation of casinos and gaming in casinos. The Authority will maintain and administer systems for the licensing, supervision and control of casinos to ensure, among other things, that the management and operation of a casino will be free from criminal influence or exploitation, and to protect minors, vulnerable persons and society at large from the potential of a casino to cause harm.

The following are some of the key provisions in the Bill:

1   Two casinos only. There will not be more than two casino licences in force at any particular time during the period commencing 10 years from the date on which a second site for a casino is designated by an order.

2   Control of main shareholder of casino operator. The main shareholder of a casino operator shall not, without the prior written approval of the Authority, transfer or dispose of any part of his stake in the casino operator to the extent that, the percentage of the total votes attached to his stake in the casino operator is less than 20 per cent of the total votes attached to all voting shares in the casino operator, or is equal to or less than the percentage of the total votes attached to the stake of any other stakeholder in the casino operator. Further, the main shareholder of a casino operator is restricted, at any time when there are two casinos in Singapore, from acquiring or holding any stake in the other casino operator, participating in the management or operation of the other casino operator, or entering into any agreement for the management or operation of the other casino.
 

3   Application for casino licence. Only the owner of a designated site on which a casino is intended to be located, or a person nominated by that owner with the approval of the Authority, may apply for a casino licence. 

4   Grant of licence to suitable person. The Authority must be satisfied that the applicant, and each associate of the applicant, is a suitable person to be concerned in or associated with the management and operation of a casino before granting an application for a casino licence.

5   Transfer, mortgage of casino licence. No casino licence may be transferred, charged, mortgaged or otherwise encumbered except with the prior written approval of the Authority.

6   Control of substantial shareholders in casino operator. No person shall become a substantial shareholder of a casino operator, or act together with any other person with respect to the acquisition, holding or disposal of, or the exercise of rights in relation to, their interests in voting shares of an aggregate of five per cent or more of the total votes attached to all voting shares in a casino operator, without first obtaining the approval of the Minister for Home Affairs (the ‘Minister’).

7   Control of shareholdings and voting power in casino operator. No person shall become a 12 per cent controller, or a 20 per cent controller, or an indirect controller of a casino operator without first obtaining the approval of the Minister. The Bill defines a 12 per cent controller to mean a person who, alone or together with his associates, holds or has interests in 12 per cent or more but less than 20 per cent of the total number of issued shares in a casino operator, or who is in a position to control voting power of 12 per cent or more but less than 20 per cent in a casino operator. A 20 per cent controller refers to a person who, alone or together with his associates, holds or has interests in 20 per cent or more of the total number of issued shares in a casino operator, or is in a position to control voting power of 20 per cent or more in a casino operator.

8   Requirements for controlled contracts. A casino operator cannot enter into a contract that is a controlled contract unless the casino operator has notified the Authority in writing of the details of such contract and only if the Authority has no objection or requires no further time to conduct 
its investigations.

9   Entry levy. The entry levy for a citizen or permanent resident of Singapore will be S$100 (inclusive of goods and services tax) for every consecutive period of 24 hours, or S$2,000 (inclusive of goods and services tax) for a valid annual membership of the casino.

10 Exclusion orders by casino operator. A casino operator may give a written exclusion order to a person, whether on the voluntary application of the person or otherwise, prohibiting the person from entering or remaining on the casino premises.

11  Minors. Persons below the age of 21 years will be prohibited from entering or participating in any gaming on any casino premises. The minor will be guilty of an offence if the prohibition is breached.

12 Enforceability of gaming contracts. A contract for gaming or betting will be valid and enforceable by reason of exemptions under certain statutes. 

Apart from the above key features, the Bill also provides for, among other things, the establishment of the National Council on Problem Gambling, casino internal controls, casino tax, and the licensing of casino employees.

Elizabeth Wong

Allen & Gledhill