Singapore Casinos Go Cashless But Cryptocurrency Bets Remain Prohibited

Cashless Gaming Approved, Cryptocurrencies Denied

Singapore has amended its Casino Control Act to allow cashless gaming in its two major casinos, Marina Bay Sands and Resorts World Sentosa.

However, cryptocurrency usage remains strictly off the table.

Minister of State for Home Affairs and for Social and Family Development, Sun Xueling, made it clear in Parliament on 10 September that while patrons may now place bets using virtual credits linked to cashless gaming accounts or e-wallets, cryptocurrencies are prohibited due to the significant risk of money laundering.

Sun Xueling, Singapore’s Minister of State for Home Affairs and for Social and Family Development

This move aims to future-proof the gaming industry while safeguarding against financial crimes.

Sun reiterated the government's firm stance:

“The GRA has no intention of allowing cryptocurrency to be used as chips for casino gambling, as this presents money laundering risk.”

Geofencing and Software Regulation within Casino Premises

In a bid to tighten control over casino gaming, amendments also empower the Gambling Regulatory Authority (GRA) to approve gaming software independently of hardware components.

This is particularly significant as it means software can now be deployed on off-the-shelf mobile devices, such as tablets, for use within casino premises.

Addressing concerns raised by MP Louis Chua (WP-Sengkang) regarding how this software will be restricted to casino grounds, Sun assured that strict measures, including geofencing technology, would be implemented.

Louis Chua, a Member of Parliament from the Workers' Party, representing Sengkang in Singapore

Sun explained, highlighting the use of location-based safeguards to prevent unauthorised usage:

“They must demonstrate how they would ensure that the gaming software cannot be used outside the casino.”

Reinforcing Social Safeguards: Entry Levies and Their Oversight

Singapore continues to uphold strict social safeguards aimed at deterring impulse gambling among locals.

The government reinforced the entry levy of S$150 (US$115) per day and S$3,000 annually for Singapore citizens and permanent residents, measures initially introduced in 2008.

The levies had previously been increased in 2019 from S$100 daily and S$2,000 annually, but an administrative lapse allowed them to revert to the lower rates in April this year.

Nevertheless, S$4.4 million was collected above the reverted rates between 4 April and 7 May, which Sun Xueling described as an unfortunate oversight.

She added, responding to a query from MP Louis Chua about the backdating of legislation:

“It was always the intent to continue the higher levies until such time that we assess that there is a need to further adjust the rates.”

Sun was forthright in acknowledging the issue, stressing that the government had promptly addressed the matter and sought Parliament’s validation for the excess collection.

Loot Boxes: A Balanced Approach to Regulation

A growing global concern regarding loot boxes—virtual items in video games often awarded through random chance — was also addressed.

MP Melvin Yong (PAP-Radin Mas) raised questions about loot boxes and whether they are essentially “gambling disguised in the form of a game.”

Melvin Yong, a Member of Parliament from the Workers' Party, representing Radin Mas in Singapore

Sun responded by outlining Singapore’s measured stance, noting that while loot boxes are not currently classified as gambling in the absence of in-game monetization features, the situation is under close watch.

Sun asserted:

“Our approach aims to safeguard against gambling inducement rather than gaming. If we find that loot boxes are becoming a significant driver of gambling inducement, we will review our regulations.”

Earlier this year, the Ministry of Home Affairs (MHA) had already imposed a cap on the value of prizes offered at amusement centres and funfairs, a proactive step to mitigate gambling risks associated with large rewards.

Remote Gambling and the International Enforcement Challenge

Remote gambling continues to present a unique challenge, particularly when operators are based outside of Singapore.

MP Louis Chua raised concerns about the efficacy of laws against foreign-based unlicensed gambling operators, to which Sun responded by emphasising that the definition of remote gambling under Singapore's Gambling Control Act is broad enough to encompass these situations.

She noted:

“An illegal gambling operator is thus liable for an offence and faces the same penalties even if he resides overseas, as long as the illegal gambling service is accessible by Singapore users.”

Nonetheless, Sun acknowledged the practical difficulty of enforcing such laws internationally, stating that the GRA’s primary approach in these cases is to block access to illegal online gambling sites.

New Powers and Responsibilities for Casino Operators and Regulatory Bodies

The amendments to the Casino Control Act include provisions that allow casino operators to share personal information about their patrons directly with authorities without needing their consent.

This change is part of a broader effort to enhance regulatory oversight and ensure compliance with legal standards.

Additionally, operators will be held accountable for any regulatory breaches even after their licences have expired, provided the infractions occurred before the expiration.

Further changes grant the Minister for Home Affairs, K Shanmugam, the authority to approve main shareholders of casino operators, a role previously held by the GRA.

K Shanmugam, Singapore’s Minister for Home Affairs

This move is intended to maintain alignment between the integrated resorts and the government's broader strategic objectives.

Sun emphasised that this shift ensures a more direct link between the government and the casino industry, allowing quicker and more effective responses to industry developments.

Future-Proofing Singapore’s Casino Industry

Singapore’s decision to allow cashless gaming marks a significant shift in the way casinos operate, reflecting the growing trend towards digital transactions.

Sun Xueling stressed the importance of the GRA’s ability to adapt to “future industry standards and market demands,” which will allow Singapore’s casinos to remain competitive in an evolving market.

The amendments, however, carefully balance innovation with the need for stringent safeguards, such as prohibiting the use of cryptocurrencies and introducing stronger oversight mechanisms.

The goal, as Sun indicated, is to allow for new gaming modes while minimising the risks associated with problem gambling and financial crime.