Singapore introduced a tiered structure for casino taxes from February 2022, replacing the flat rates that had applied until then, under an announcement made by four government ministries on April 3, 20191. The change applies to the two integrated resorts, Marina Bay Sands (MBS) and Resorts World Sentosa (RWS)1.
Until the change, gross gaming revenue (GGR) from premium gaming was taxed at a flat 5 percent and mass gaming at a flat 15 percent2. Premium gaming refers to GGR from players who open a deposit account with a credit balance of no less than S$100,000; mass gaming covers players outside that category2.
Under the tiered structure, the first S$2.4 billion of GGR from premium gaming is taxed at 8 percent, with GGR above S$2.4 billion taxed at 12 percent1. For mass gaming, the first S$3.1 billion of GGR is taxed at 18 percent, while GGR exceeding S$3.1 billion is taxed at 22 percent1.
| Gaming segment | First tier | Second tier |
|---|---|---|
| Premium gaming | 8 percent on first S$2.4 billion of GGR | 12 percent on GGR above S$2.4 billion |
| Mass gaming | 18 percent on first S$3.1 billion of GGR | 22 percent on GGR above S$3.1 billion |
The tiered structure was announced alongside a 50 percent rise in casino entry levies for Singaporeans and Permanent Residents, from S$100 to S$150 for the daily levy and from S$2,000 to S$3,000 for the annual levy1. From August 2019, both daily and annual levies are automatically activated after six hours even if the patron does not enter the casino by then, and the earliest a second levy may be purchased is six hours before the first expires2. Daily levies automatically expire 30 days after purchase, while annual levies are automatically activated after 90 days2.
The Ministry of Social and Family Development said it considered the problem-gambling situation, changes in household income levels, the prices of alternatives such as the casinos in Genting, Malaysia, and general economic conditions before deciding on the levy increase2. The National Council on Problem Gambling said problem gambling affects less than 1 percent of the resident population2.
"Casino taxes will change from its current flat rate of 5 percent to a tiered structure"
Analysts quoted by CNA said the tax and levy changes were unlikely to add much to government coffers. Mr James Walton of Deloitte Southeast Asia pointed out that gaming taxes contributed only about 3.5 percent of the total operating revenue of Singapore's budget in 20181. Ms Selena Ling of OCBC Bank said the tiered system would likely reap more benefits only if gaming revenues exceeded expectations1. Mr Walton added that the increase was more of a "political statement" by the Government to show that while it was allowing the expansion of the casinos, it still recognized that gambling is a social problem1.
What it means for players
The tax is levied on operators' gross gaming revenue, not on individual players' winnings, so the tiered rates do not change how a player's own result is treated1. The rates differ by segment: play classified as premium gaming, which the government defines by a deposit account credit balance of at least S$100,000, sits in the lower tax band, while mass gaming sits in the higher one2. For Singaporeans and Permanent Residents, the cost of entry rose separately, with the daily levy at S$150 and the annual levy at S$3,0001. The automatic activation rules mean a levy can start running six hours after purchase whether or not the holder enters the casino2. Foreign visitors are not covered by the entry levy, which applies to Singaporeans and Permanent Residents2.
What happens next
The tiered tax structure took effect from February 2022, after the moratorium then in place ended1. The government also extended the integrated resorts' exclusivity so that no casinos will be built in Singapore until end-20302. MBS and RWS were given options to deploy an additional 2,000 sqm and 500 sqm of approved gaming area respectively, subject to additional land costs, and to increase allowable gaming machines by 1,000 and 800 respectively2. The approved gaming area as a proportion of total floor area is ultimately to be reduced from 3.1 percent to 2.3 percent2.
