-- Singapore to bar about 15,000 more citizens and permanent
residents from its casinos
-- The move widens existing casino-entry ban for "financially
vulnerable" locals, currently imposed on 28,000 people
-- Wider ban follows government pledges in February to step up
efforts to reduce social impact of casino gambling
(Updates with background on official gambling survey in second
and ninth paragraphs, background on past measures in fifth,
seventh, eighth paragraphs, and background on Singapore's gaming
industry in 10th and 11th paragraphs.)
By Chun Han Wong
SINGAPORE--Singapore will bar from its two casinos about 15,000
more citizens and permanent residents, including low-income and
unemployed people receiving state welfare aid, as part of efforts
to contain the social impact of casino gambling in the
city-state.
The move, announced late Thursday, comes after an official
survey published February showed more instances of heavy gambling
among low-income players in 2011 compared with 2008--a finding that
prompted government pledges then to do more to reduce gambling
among the poor.
Starting July 1, about 12,000 residents receiving short- to
medium-term financial support from the government will be barred
from the casinos, the Ministry of Community Development, Youth and
Sports said in a statement. Authorities will also bar, starting
Aug. 1, about 3,000 public-housing tenants who are in arrears of
six or more months on their subsidized rental payments, the
ministry added.
"We want to protect the financially vulnerable who can ill
afford casino gambling," acting Minister for Community Development,
Youth and Sports Chan Chun Sing said in the Thursday statement.
First proposed by the government in February, the new exclusion
orders widen an existing state-imposed casino-entry ban on 28,000
people here, comprising bankrupts and people receiving long-term
government financial aid.
As at May 31, the authorities have also barred 1,083 people at
their families' request and 64,064 people--locals and
foreigners--who had volunteered to be excluded.
Singapore allowed casino gambling in 2005 as it sought to spice
up its attractiveness as a travel destination and reap more tourism
dollars. The island state's first licensed casino resorts--Genting
Singapore PLC's (G13.SG) Resorts World Sentosa and Las Vegas Sands
Corp.'s (LVS) Marina Bay Sands--opened in early 2010.
Opponents of the casinos cited a potential rise in social
problems like organized crime and gambling addiction. To contain
the impact, the government imposed measures including a minimum age
of 21 years for all casino patrons, casino-entry levies on citizens
and permanent residents of 100 Singapore dollars a day and S$2,000
annually, and social programs to discourage heavy gambling.
More restrictions have since been added, including bans on
casino advertising that targets residents. Authorities have also
hinted at additional measures in future, like placing loss-limiting
"circuit breakers" on local frequent gamblers.
These measures may have had some effect. According to the
official survey, the overall gambling rate among locals, ages 18
and above, fell to 47% in 2011 from 54% in 2008. But the survey
also suggested that more low-income players were betting large
sums, while frequent gamblers are playing more often.
Regardless, Singapore's fledging gaming market has grown
strongly since the two casinos opened. Some analysts expect the
city-state's gross casino gambling revenue to rival or exceed that
generated on the Las Vegas Strip this year.
Citigroup projects Singapore's 2012 gross casino gambling
revenue to hit $6.4 billion, up from about $6 billion in 2011, and
compared with the Las Vegas Strip's forecast $6.2 billion for this
year.
This growth is largely driven by foreigners--the government
previously said Singapore citizens and permanent residents account
for between 20% and 30% of all casino visitors here, while visits
by locals to both casinos has fallen.
Local visitors to Resorts World Sentosa's casino fell 32% in
2011 to 136,434 from 199,783 in 2010, while Marina Bay Sands
reported a 9% decline for the same period--137,259 locals visited
its casino last year, compared with 150,691 in 2010.
Write to Chun Han Wong at chunhan.wong@dowjones.com
