JACKPOT MACHINES IN PRIVATE CLUBS

Mr Chia Shi Teck asked the Minister for Finance (a) if he will state (i) the names of private sports and recreation clubs with jackpot machines; (ii) the number of such machines allowed and operated by each club and the basis of allocation; and (iii) the revenue generated to each club and the taxes paid to the Government from 1989 to 1993; and (b) whether there is any intention to curb this form of entertainment.

Dr Richard Hu Tsu Tau: Operation of jackpot machines is restricted to private clubs. A list of the clubs operating jackpot machines as well as the number of machines operated by each club is in Annex A (Cols. 79 - 84). Annex A - CLUBS AND NO. OF MACHINES (Cols. 79 - 84)

IRAS takes a number of factors into account in deciding on whether a club should be allowed to operate jackpot machines as well as the number of machines it should be allowed to operate. Some of the factors include membership size of the club, financial standing of club members, organisational structure and managerial control of the club. Duty collection from jackpot machines amounted to $112 million in 1993.

IRAS' criteria for approving applications from clubs to operate jackpot machines are already fairly stringent. Conditions are also laid down on maximum payout for each machine and restriction of access to club members, etc. Any club found violating these conditions is liable to have its licence to operate jackpot machines suspended. The existing controls are sufficient. There is therefore no intention to impose further controls to restrict the operation of jackpot machines.