Revenue from Casino Levies in 2011 and 2012

Mr Ang Wei Neng asked the Deputy Prime Minister and Minister for Finance (a) what is the amount of casino entry levies collected in 2011 and the first six months of 2012; and (b) how much of the casino entry levies collected are channelled specifically to fund measures to contain gambling ill.

The Minister of State for Finance (Mrs Josephine Teo) (for the Deputy Prime Minister and Minister for Finance): Mr Speaker, in 2011, the casino entry levies collected was about $195 million. The collection stands at $93 million for the first six months of 2012. The casino entry levies are collected by the Singapore Totalisator Board (Tote Board) and used for social and charitable purposes in Singapore. The Tote Board does not specifically ring-fence the casino entry levies to fund measures to contain gambling ills.

Measures to contain gambling ills are funded separately. Since 2009, the Government has more than doubled its expenditure on containing gambling ills, from $3.8 million in FY2009 to $9 million in FY2011. Some key initiatives include the establishment of the National Council of Problem Gambling (NCPG), which administers casino exclusion, provides advice to the Government on how to address problem gambling and implements public education programmes to address problem gambling. The Government also provides grants to Voluntary Welfare Organisations, such as Family Service Centres, to defray the cost of counselling services that the VWOs provide to problem gamblers.

Mr Ang Wei Neng (Jurong): Mr Speaker, I would like to thank the Minister of State for the reply. From the financial reports of the two Integrated Resorts, I understand that the profit of Marina Bay Sands (MBS), in terms of EBITA (earnings before interest, tax and amortisation) between the second quarter of 2010 and the first quarter 2012 – in just two full years' of operation – is about US$2.6 billion or about S$3.3 billion. Similarly, Resorts World Sentosa's (RWS) profit, in terms of EBITA between the first quarter 2010 and the first quarter 2012, is also in the region of about S$3.3 billion. Quite a coincidence.

So, if MBS' earnings for the rest of the year are as strong as the first quarter this year, the total accumulated profits, in terms of EBITA, will reach or exceed S$5 billion by the end of this year. This means MBS would have recovered all its initial investment of S$5 billion in less than three years. This is far better than the prediction by the Sands' President which was reported in The Business Times on 31 May 2006, whereby Sands expected to get its money back by 2017.

Page: 382

Mr Speaker: Mr Ang, can we come to the question, please?

Mr Ang Wei Neng: Yes, Sir. The two IRs have made very good profits and contributed to Singapore's economy because of the tax they pay. In view of the above, I have two supplementary questions. Firstly, would the Government consider persuading the IRs to do more Corporate Social Responsibility (CSR) activity by helping the low-income group, especially those Singaporeans that are affected financially and emotionally by their family members who patronise the IRs? Secondly, would the Government consider channelling the penalties paid by the IRs into a separate pool of fund, in the event disciplinary actions are taken against the IRs, to help to fund this same group of low-income people who are affected by gambling ills? I would usually direct these questions to MCYS. Since the Minister of State for Finance is taking care of this question now, I hope she can answer us in a whole-of-Government approach [ Laughter ].

Mrs Josephine Teo: Mr Speaker, I would also want to thank Mr Ang for expressing the concerns of many Singaporeans with regard to problem gambling. Mr Ang has highlighted the profitability of the Integrated Resort operators because of the patronage of the casinos. I thought that perhaps, it would be useful to highlight that in tandem with the increase in profitability, the tax revenues that we collect from the casino operators have also been quite considerable. And perhaps just to provide a sense of perspective, in fact, the net increase in tax revenues from the IRs was about $900 million for FY2010 and for FY2011, the figure was about $1.1 billion. So, yes, the casino operators have made more money but, at the same time, they have contributed to our tax revenues. And through these tax revenues, the Government is able to provide support for Singaporeans in many areas and expand our resources, in terms of care, for Singaporeans. That is the first point I want to make.

Mr Ang is very right, Mr Speaker, to say that actually his questions are going to be more adequately addressed by MCYS. I would like to assure him that, in fact, his questions which relate to whether we are doing enough to deal with problem gambling are being looked at seriously. Now, before I say more about that, Members will be familiar with the stringent social safeguards that have already been put in place to minimise the impact of casino gambling. Now, these include – of course, not just the casino entry levy – but also the minimum age limit of 21 years for entry into the casinos as well as Family, Voluntary Self and Third-Party Casino Exclusions. For exclusions, for example, there are about 93,000 exclusions that are currently in force. In fact, two out of three exclusions are Self Exclusions.

Apart from these social safeguards, there are also prohibitions of casino advertising and promotion targeted at the domestic market, prohibitions on credit for local gambling in the casino and, also through public education, there is now greater awareness on harms of gambling as well as the availability of services to help those who are facing difficulties in coping and managing their gambling habits.

Obviously, these safeguards are important and are reviewed regularly. As has been announced quite recently, stronger safeguards are being considered, and the House will have the opportunity to discuss these measures as part of the Casino Control (Amendment) Bill, which has been put up for public consultation.

Page: 383

Mr Speaker: Mr Ang Wei Neng, last question.

Mr Ang Wei Neng: Sir, I thank the Minister of State for the comprehensive reply. I noted that the Minister of State said that we spent $9 million in 2011 on measures to contain gambling ills. This pale in comparison with the $1.1 billion of tax collected from the two IRs in 2011 and also the $93 million of casino entry levies that we collected for the first six months of this year. I urge the Ministry of Finance to allocate more funds to help the society to combat gambling ills.

Mrs Josephine Teo: Mr Speaker, I would like to thank Mr Ang for raising the point again. If the problem can be resolved by us putting aside more monetary resources, that would be the easiest thing to do because we are not short on the commitment to resourcing this set of measures and safeguards that needs to be put in place. What we are, however, mindful of is that it is not just putting aside the monetary resources. It is really about identifying the interventions that will be most effective and helpful in curbing the gambling addiction. I take Mr Ang's point, and I would like to assure him that we will set aside sufficient resources and the Government is committed to doing so.