SINGAPORE - The definition of gambling differs across the different laws here, but the Ministry of Home Affairs (MHA) intends to amend this so as to cover a broader scope that will be technology-neutral.

In a release on Monday (July 12), the MHA said it is also seeking to amend laws relating to social gambling, mystery boxes and arcade games, online and video games with elements such as loot boxes, and penalties for repeat offenders who facilitate illegal gambling.

The ministry said it will be amending the laws later this year.

It said that because of the advancements in technology, the Internet and mobile computing have made gambling products more accessible.

As a result, the laws need to be amended with a broader definition of what constitutes gambling, so that it can cover existing and emerging gambling products.

The MHA noted that such a definition may unwittingly cover products it has no intention of treating as gambling products, such as financial products already regulated by the Monetary Authority of Singapore.

To prevent this, it said it will carve out these products from the definition of gambling, which is an approach that has been taken in other jurisdictions such as Australia and Switzerland.

As for social gambling, it recognised that family and friends gambling at home is a socially acceptable practice among Singaporeans, and that such practices present low risk to law and order.

Thus, it intends to exempt such activities, provided they fulfil all the exemption criteria.

The criteria listed out by the MHA are as follows: the gathering must be for a social occasion and there is a real relationship among participants; the gambling is not promoted or conducted for the purposes of trade or business; the activity is not for the private gain of any person other than the extent of the game's winnings; and the activity is conducted in enclosed areas of private residences, provided that participants are invitees of the owner or tenant.

But while MHA intends to exempt such activities when they are conducted in person, it proposes that online social gambling among friends and family still not be permitted under the law due to enforcement difficulties.

It also warned that strong enforcement action will be taken against syndicates that exploit the exemptions.

Another key area the ministry intends to amend relates to games with gambling elements.

It noted that because of factors such as technological advancements and changing consumer tastes, the lines between gambling and gaming have become increasingly blurred.

It proposes that a $100 prize cap on mystery boxes, arcade games and claw machines be introduced to address the inducement effect of high-value prizes.

It also proposes that the laws be updated to address online games with loot boxes and virtual skins.

The MHA said it intends to "introduce conditions" to ensure such transferable game items remain in the context of gameplay and entertainment.

It proposes that games and services of chance that let players use these items to make bets or gamble, such as skin-betting sites, be banned.

However, it also proposes that in-game monetisation facilities for free-to-play games be allowed, but that these be subject to current conditions similar to lucky draw promotions by businesses.

It added that penalties for repeat offenders under gambling laws should be raised to increase deterrence, but that this should focus on those who facilitate or operate such services, and not those who simply participate in illegal gambling.

The MHA said Singapore adopts a strict but practical approach to its regulation of gambling.

"It is not practical nor desirable, in fact, to disallow all forms of gambling, as this will just drive it underground and cause more law and order issues," it said.

"Instead, we license or exempt some gambling activities, with strict safeguards put in place. Our laws governing gambling seek to maintain law and order and minimise social harm caused by problem gambling."

Gambling-related crimes remain low, with casino crimes comprising less than 1 per cent of all crimes since the integrated resorts began operations in 2010.

Problem gambling here also remains under control, with problem and pathological gambling rates remaining stable at around 1 per cent of the respondents, according to surveys by the National Council on Problem Gambling.

The MHA said views and suggestions from the public on the proposals are welcome, and the full report on the MHA's proposals can be found at this link.

The public is asked to submit feedback to MHA by Aug 10, and may do so by e-mailing MHA_Gambling_Feedback@mha.gov.sg, or mailing the MHA at New Phoenix Park, 28 Irrawaddy Road, Singapore 329560, with the subject of their mail listed as Re: Gambling Legislation Consultation.

Key proposed amendments to gambling legislation

Social gambling

- Physical social gambling among family and friends to be allowed, subject to criteria
- Online social gambling among family and friends not allowed
- Strong enforcement action against syndicates that exploit exemption

Mystery boxes, arcade games and claw machines

- Prize cap of $100

Online and video games

- Virtual items to remain in context of gameplay and entertainment
- Gambling, betting, wagering with virtual items not allowed (that is, skin-betting sites, which involve the use of virtual cosmetic game items to make wagers, to be banned)
- In-game monetisation for free-to-play games allowed, subject to conditions similar to business promotion lucky draws

Penalties

- Differentiation between operators, agents and punters, in decreasing order of culpability
- Raise in penalties for repeat offenders who are operators and agents, to increase deterrence
- No raise in penalties for punters who are repeat offenders, as enforcement efforts are to focus on enablers

Definition of gambling

- Broadened to cover existing and emerging gambling products
- Technology-neutral
- Products such as financial products regulated by the Monetary Authority of Singapore to be carved out from definition