Rationale for Ceasing Jackpot Operations at Singapore Premier League Clubs
Ministry of Culture, Community and YouthSpeakers
Summary
This question concerns the rationale for ceasing jackpot operations at Singapore Premier League (SPL) clubs and potential financial subsidies. Mr Mark Chay asked about the policy's justification and its extension to other sports clubs. Minister Edwin Tong Chun Fai explained that SPL clubs did not meet 2017 regulations requiring jackpot machines to be ancillary to substantive recreational offerings. Following a transition period that concluded in November 2022, Sport Singapore is providing short-term support to eligible clubs while developing sustainable financial models. All gaming machine operators must now satisfy licensing criteria under the Gambling Control Act and the Gambling Regulatory Authority.
Transcript
72 Mr Mark Chay asked the Minister for Culture, Community and Youth (a) what is the rationale for ceasing jackpot operations at Singapore Premier League Clubs (SPL); (b) whether the Ministry will consider providing subsidies to SPLs to mitigate the loss of this income stream; and (c) whether there are plans to extend this cessation of jackpot operations to other social and sports clubs.
Mr Edwin Tong Chun Fai: In July 2017, MHA tightened the regulatory regime for jackpot, or fruit machine (FM), operations to curb availability of FMs and strengthen social safeguards against gambling. Under this regime, clubs would only be allowed to provide FMs as an ancillary offering to their members, within a wider suite of substantive recreational and social facilities and services, and not a major offering in itself.
Singapore Premier League (SPL) clubs with FM operations did not meet these revised criteria. Clubs, in general, did not provide any other recreational offerings or services other than FMs. Some of the SPL clubs had a high dependence on the FM operations for their revenue. With the new rules, SPL clubs would have to give up their FM operations completely. However, the clubs were given a grace period within which to gradually wind down their FM operations. This was to assist the clubs, so that they did not have to completely cease FM operations immediately.
In 2018, the clubs were notified of a transition period, during which time they were required to reduce their FM operations to below a quota of 15 machines by November 2019. On this basis, their permits were then renewed for a year, with no assurance of any subsequent renewal. On 1 November 2022, the permits ceased altogether.
In addition to the gradual wind-down, to further mitigate the impact of the FMs' cessation on the clubs’ core football operations, Sport Singapore (SportSG) will be providing support to eligible SPL clubs in the short-term. SportSG will also be working with the Football Association of Singapore and the clubs to develop a more financially sustainable operating model going forward.
Under the Gambling Control Act (GCA) which came into force on 1 August 2022, any person who wishes to operate a gaming machine room would need to apply for a licence from the Gambling Regulatory Authority of Singapore (GRA) and meet the licensing criteria.