OFF-COURSE BETTING CENTRES

Mr Low Thia Khiang asked the Minister for Finance whether allowing the setting-up of off-course betting centres will lead to more gambling in our society.

RAdm Teo Chee Hean (for the Minister for Finance): Mr Speaker, Sir, the recent move to allow the setting up of off-course betting is intended to combat illegal bookmaking, and not to encourage gambling. Illegal bookmakers have made illegal betting convenient and easily accessible to the public. If this is not curtailed, more people will be encouraged to bet illegally. To stem this tide, the Government has decided to introduce a package of measures which include allowing off-course betting, and reducing betting duty for horse-racing and the Singapore Turf Club's commission.

Experience of other countries which have set up off-course betting facilities such as Australia, Hong Kong and Japan has shown that such a measure is effective in reducing illegal bookmaking.

Sir, in every society, there will always be people with the urge to gamble. This is part of human nature which cannot be totally eliminated. If we suppress legal gambling activities, it will only benefit the illegal operators. But with legal gaming facilities, we will be able to satisfy the gambling urge of the public as well as reduce the extent of illegal gambling. The proceeds from legal gambling, which would otherwise have ended up in the coffers of the illegal operators, can also be directed to worthwhile activities such as education, health, community service and the arts.

Mr Low Thia Khiang: Sir, by making it more convenient for Singaporeans to place their bets as a result of introducing off-course betting centres, will it not encourage more Singaporeans to gamble?

RAdm Teo Chee Hean: Sir, anecdotal evidence suggests that it is not inconvenient to place bets with illegal operators today. Although the situation is not out of hand, it is a persistent one and we need to take action to curb it. One important difference between the off-course betting that is being introduced and illegal bookmaking is that off-course betting will not provide credit facilities. Therefore, this is a significant difference and it should have some dampening effect on gambling activities as compared to the illegal bookmaking centres.

Mr Low Thia Khiang: On the contrary, Sir. I believe that those people who either have no access or who find it too troublesome to go to the Turf Club to place their bets or too scared or worried to approach an illegal bookmaker because it is illegal, will then find it more convenient to bet legally. As for the rationale of introducing off-course betting which is to stem out illegal activities, the fact is that the Senior Minister of State has mentioned that illegal bookmakers offer credit facilities. Is this going to be effective?

RAdm Teo Chee Hean: Sir, we believe that by reducing the betting tax as well as the reduction in the commission of the Singapore Turf Club, the profits that illegal bookmakers make from illegal bookmaking will be substantially reduced and therefore the incentive to go into illegal bookmaking will be reduced. We believe that illegal bookmaking should decline. Therefore the other activities associated with illegal bookmaking such as providing easy credit for people to bet should also decline.

Mr Low Thia Khiang: Sir, by providing off-course betting centres, it means that illegal bookmakers will now have more direct and convenient access to the results. That would cut their cost as well. If they compete with the Turf Club, will it necessarily be an effective measure to stamp out illegal bookmaking?

RAdm Teo Chee Hean: The Member will know that with modern telecommunication facilities, the dissemination of results is not a particularly difficult thing. As I said earlier, the reduction in the profits from illegal bookmaking should dissuade illegal bookmakers from continuing to operate.

Mr Chiam See Tong: Sir, I take up from what the Minister has said. He said that if you have got legal backing the gamblers do not have easy credit. Does the Minister not agree with me that even today there are many loansharks around the coffeeshops and if the legal centres do not give credit, they could easily get loans from the loan sharks and with that money they go and bet? It will in fact make the situation even worse for them because they will then be in the hands of the loan sharks.

RAdm Teo Chee Hean: Sir, I am not quite sure what the Member is suggesting. Is he actually suggesting that we should be providing credit facilities so that people do not go to loan sharks?