With gambling generally outlawed in Singapore, can businesses use entertainment or promotion gimmicks such as games for prizes and lotteries? I examine this question against the Gambling Control Act 2022.
Estimated reading time: 7 minutes
The Singapore Gambling Control Act 2022 (“Act“) recently came into force to outlaw betting, gaming activities, and lotteries. “Lotteries” includes lucky draws, raffles and sweepstakes. “Gaming activities” includes games of chance played for a prize and gaming machines.
Many F&B outlets tend to think that gambling control laws do not apply to their entertainment activities. After all, if your restaurant is not an underground gambling den, why should you worry? Right? Unfortunately, not quite right. The common myth is that if an activity does not look like casino gambling, it is not unlawful. However, it is not lawful to conduct a lottery just because your customer does not pay any money to take part. And it is not lawful to conduct gaming activities just because the prize is not in cash. There are other rules to abide by before a business can use these entertainment or promotion gimmicks.
The language used in the Act is rather complex and this article tries to steer away from being overly technical. Essentially, the Act disallows any offline or online activity involving (a) staking anything of value on the outcome of an event, (b) distribution of anything of value among a group of people, and (c) conducting games where anything of value may be won.
How then do F&B outlets (and other consumer businesses) lawfully inject some fun into the customer experience?
TRADE PROMOTION GAMING AND LOTTERIES
Businesses may conduct gaming activities and lotteries (a) to encourage participation in a market survey or (b) primarily to promote goods and services. Class licences apply to (a) and (b), respectively.
The criteria and conditions attached to both class licences are similar:
- Eligibility to participate in the game or lottery must be free (or, in the case of (b), obtained by purchasing the promoted goods or services.
- The game or lottery cannot resemble stipulated casino-style games, or rely on the results of any licensed lottery (4D, Toto, Singapore Sweep) or horse race.
- Advertising of the game or lottery cannot be with reference to, or conducted by using or displaying, any stipulated gambling article such as Mahjong tiles, poker cards, or lottery tickets.
- Certain specified information, such as the timing of the game or lottery and the applicable rules, must be provided.
- Stipulated rules relating to non-instant games or lotteries, such as the method of determining the results, must be complied with.
- In the case of (b), no goods or services are offered to any person who is under the minimum legal age required to purchase the same.
- The trade does not relate to the provision of any gambling related goods and services.
INCIDENTAL GAMBLING
At social or business events, there may be a need for event entertainment. We see photo booths and live bands. Can there also be games for prizes and lotteries?
If the event falls under the definition of “non-gambling event”, games for prizes (other than those played using a gaming machine) and lotteries may form part of the event entertainment under a class licence. The most relevant non-gambling events to F&B businesses are (a) private social gatherings such as weddings and corporate D&Ds, (b) business industry events such as conferences and conventions (but not exhibitions or trade promotions aimed at consumers), and (c) live performances of arts entertainment such as music performances, art exhibitions and variety acts.
The criteria and conditions of the class licence are:
- The game or lottery must be incidental to the non-gambling event and conducted for the entertainment or amusement of attendees.
- Eligibility to participate in the game or lottery must be free and open only to attendees of the non-gambling event.
- All publicity material for the non-gambling event must not use the games and lotteries available as event entertainment as the primary inducement to attend the event.
- Publicity of the non-gambling event should not use images of gambling articles associated with the games and lotteries, such as Mahjong tiles, poker cards, or lottery tickets.
- The game or lottery cannot resemble stipulated casino-style games, or rely on the results of any licensed lottery (4D, Toto, Singapore Sweep) or horse race.
- Conduct of the game or lottery cannot use or display images of any stipulated gambling article such as Mahjong tiles, poker cards, or lottery tickets.
- Determination of winners must take place before or during the non-gambling event and publicised in accordance with stipulated requirements.
REMOTE GAMES OF CHANCE
Customer loyalty is a whole industry of its own, with increasing emphasis on technology to retain patronage. Loyalty apps offer many reasons for customers to stay true to an F&B establishment, from discounts to rebates to VIP privileges.
But businesses must take care that loyalty rewards do not violate laws that prohibit remote gambling. Interactive games of chance made available online to persons located in Singapore, or by an operator based in Singapore, are subject to two class licences. The first is a class licence that applies where the games may be played free of charge (“Type 1 licence“). The second applies where the prize can only be used within an in-game microtransaction (“Type 2 licence“).
The Type 1 licence has the following criteria and conditions:
- The game is free to play and in the nature of entertainment.
- The game cannot resemble stipulated casino-style games, or rely on the results of any licensed lottery (4D, Toto, Singapore Sweep) or horse race.
- The game cannot be conducted by using, or displaying images of, any stipulated gambling article, such as Mahjong tiles, poker cards, or dominoes.
The Type 2 licence has the following criteria and conditions:
- Prizes cannot be in cash.
- Prizes (non-cash) are for in-game microtransactions only.
- Prizes cannot be readily converted into money, money equivalent or anything else of value that can be used outside the game.
AMUSEMENT MACHINES
The Act does not regulated amusement machines that pay out less than $100 in a single win or that offer only the opportunity to play once more. References to “gaming machines” thus do not include amusement machines with token prizes.
FURTHER CAUTION
The Act casts a very wide net, as noted in my introduction to this article. Games of chance include games where the element of chance is small and where superlative skill may be relevant. They also include single-player games and games players may not stand to lose anything. The class licences prescribe strict criteria and conditions. Overall, the rules of gambling control are nuanced and complicated. Businesses must be careful when conducting gaming activities and lotteries for entertainment or promotion.
To read more about the Act, please click here.
*This article is for general information purposes only. It is not intended to be relied upon as professional legal advice on any specific matter. If you have a particular concern, you should seek specific legal advice by contacting me or your preferred lawyer.
