Changes to Casino Control Act Effective from 30 Oct 2024 to Enhance Operational Effectiveness of Regulatory Regime, Regularise Casino Entry Levies

On 29 October 2024, the Ministry of Home Affairs (“MHA“) announced that certain provisions of the Casino Control (Amendment) Act 2024 (“Amendment Act“), which amends the Casino Control Act 2006 (“CCA“), will come into effect on 30 October 2024. The other provisions will be operationalised at a later date.

The amendments will: (i) improve the operational efficiency of the casino regulatory framework; (ii) strengthen oversight of casinos and licensees; (iii) bolster protection for vulnerable groups; and (iv) regularise the casino entry levies collected from 4 April to 7 May 2024.

Provisions that have now come into effect include those relating to:

  1. Tightening of the regulation of casinos and licensees
    • Destruction or falsification of documents. It will be an offence for any person to destroy or falsify documents, knowing that the document is required to be produced to the Gambling Regulatory Authority (“GRA“) under the CCA. Currently, it is an offence for a person to destroy or falsify such documents, and the offence will be amended to cover any other person who handles or has access to the document, e.g. staff of the casino operator.
    • Alignment of penalties. The penalties for offences will be aligned with those for similar offences in other laws. For instance, increasing the penalties for: (i) providing false or misleading information to GRA; and (ii) a minor refusing to give particulars or using false evidence of age to enter a casino.
    • Disciplinary action after licence lapses. GRA will be allowed to take disciplinary action against casino operators and special employees for regulatory breaches even after their licences have lapsed, if the disciplinary action had commenced prior to the licence lapsing.
  1. Strengthening the regulation of main shareholders, substantial shareholders and controllers of casino operators
    • Approval regime. The CCA is amended to enhance the approval regime, for the acquisition and disposal of shares in casino operators, where only approved persons are allowed to be: (i) main shareholders; (ii) controllers; and (iii) substantial shareholders.
    • Main shareholders. Powers related to the approval of associated divestments and acquisitions will be transferred from GRA to the Minister for Home Affairs (“Minister“). These are the powers to approve: (i) the transfer and disposal of a main shareholder’s shares in the casino operator, if it leads to them owning less stake than any other shareholder; and (ii) any other persons’ acquisition of stake in a casino operator, if it leads to them owning more stake than the main shareholder.
    • Controllers, substantial shareholders. Related regulatory powers will be transferred from the Minister to GRA. These include powers to approve a person becoming a substantial shareholder or a controller (or exempt such persons from approvals), and direct someone to cease being such a substantial shareholder or controller.
    • Associates. At present, other than the corporate entity with controlled shareholdings in the casinos, all its related corporations are also subject to GRA’s approval. The CCA is amended such that only corporations that are able to exercise influence or control over the casino operator will be subject to GRA’s approval.
  1. Regularising collection of entry levies
    • The CCA is amended to reflect the existing entry levy rates (i.e. S$150 for the daily levy, and S$3,000 for the annual levy).
    • The entry levies collected from 4 April to 7 May 2024, which were higher than the legislated amount at that time, will also be regularised.

For more information, please see our earlier September 2024 NewsBytes article titled “Casino Control (Amendment) Bill Passed to Enhance Operational Effectiveness of Regulatory Regime and Strengthen Protection for Vulnerable Groups“.

For further queries on this development, please feel free to contact our Partners in the “Contacts” column, as well as our team members Yong Yi Xiang (yixiang.yong@rajahtann.com), Edina Lim (edina.lim@rajahtann.com) and Phang Shi Ting (shiting.phang@rajahtann.com).


 

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