SOUTH EAST ASIA 14
Wai Ming Yap*
Gina Ng*
Regulators seek clarity on blurred lines between gaming and gambling Singapore’s Ministry of Home Affairs (MHA) is seeking feedback from the public on proposed amendments to the existing gambling legislation.
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hese amendments seek to address two trends in the gambling landscape. First, advancements in technology relating to the internet and mobile computing that have made gambling products more accessible. Second, the blurring of boundaries between gambling and gaming and the introduction of gambling elements in products that are not traditionally perceived as gambling. Currently, the definition of “gambling” differs across different pieces of gambling legislation in Singapore, depending on the gambling product. The MHA proposes to broaden the definition of gambling to make it technology-neutral, so that it can cover existing and emerging gambling products. The MHA acknowledged that a wider definition may inadvertently cover products it has no intention of treating as gambling products, such as financial products already regulated by the Monetary Authority of Singapore through other legislation. To prevent this, the MHA stated that it will adopt the approach taken in other jurisdictions (e.g., United Kingdom, Australia, Switzerland, and Denmark) and carve out these products from the definition of gambling. The MHA observed that mystery boxes are similar to lotteries, in particular those that promise high-value prizes that can easily be traded for cash. As the value of prizes increases, their potential to induce gambling behavior increases. The MHA recognizes that such activities are considered a form of entertainment but has taken the view that safeguards need to be introduced to ensure that these activities do not induce gambling behavior and cause social problems. To address the blurring boundaries between gambling and gaming, the MHA proposes to introduce a prize cap of $100 for mystery boxes, arcade games and claw machines. It is of the view that the cap will be sufficient to address the inducement effect of high-value prizes, without increasing the regulatory burden on operators. Skin betting sites banned The MHA observed that it is increasingly common for online and video games to incorporate in-game microtransactions (e.g., loot boxes) that can resemble gambling. Currently, Singapore gaming laws and regulations
Asia Gaming Briefings | September 2021
do not consider games of chance with virtual prizes as gambling so long as there are no in-game monetisation facilities that allow players to exchange virtual prizes for real-world payouts (i.e., money, or items that can be exchanged for money). The MHA proposes to update
