SPL clubs informed jackpot operations must close by end of October

Singapore Premier League (SPL) clubs have been told to shutter jackpot operations by the end of October, with clubs informed of the move on Sept 15, 2022¹. The decision comes as the SPL heads toward privatization, which will take place in 2023¹. Five of the current eight SPL clubs run jackpot operations¹. The three that do not are developmental side Young Lions, the Lion City Sailors, which became Singapore's first privatized football club at the start of 2020, and Tanjong Pagar United, whose jackpot license was not renewed a year before it rejoined the SPL in 2020¹.

Jackpot takings have been the main revenue stream for many clubs over the last two decades, with some operations running from as far back as 1996, when the local professional league was first formed¹. Clubs with the maximum 15 machines are understood to enjoy takings of nearly $500,000 annually, while Balestier Khalsa, which has eight machines, can generate up to nearly $200,000¹. Those figures do not include expenses such as rent and wages, which differ from club to club¹. Machine ownership among the SPL clubs currently stands as follows¹:

• Hougang United, Geylang International and Albirex Niigata: the maximum number of machines, 15¹
• Tampines Rovers: 13 machines¹
• Balestier Khalsa: eight machines¹

SPL clubs operate on a budget of about $1.2 million to $1.5 million, with about $800,000 of that coming from Tote Board subsidies, a portion of which is tied to key performance indicators¹. With jackpot earnings no longer viable from 2023, sources say the Unleash the Roar! committee has plans to increase subsidies, with a suggestion of an 80 to 100 percent increase in the current annual $800,000 amount, for clubs, for the next five years at least¹. It is understood clubs have been instructed to share projected football expenses for November and December, and that if their reserves from jackpot takings do not cover these expenses, the FAS will provide recompense¹.

The change, and specifically its timing, with a final decision passed only six weeks before operations must cease, has upset a number of club officials¹. One club said it had just invested a "six-figure sum" to upgrade and automate its jackpot operations system earlier this year, and another said it had hired staff on Sept 1 to manage jackpot operations, only to learn two weeks later they would no longer be required¹. Some clubs also have leases on rental spaces for their clubhouses extending beyond 2022, which will now have to be broken, with clubs understood to be expected to foot the cost themselves¹.

The move follows earlier tightening. After police raids of clubhouses in 2017, the clubhouses of Hougang United, Woodlands Wellington and Tiong Bahru FC were raided, and it was later revealed that TBFC had pulled in $36.8 million in 2016¹. Less than a year after the FAS elections, TBFC, Woodlands and Sinchi were ordered to cease their jackpot operations, while other clubs were instructed to reduce their machines to a maximum of 15 by the end of 2019¹. The Ministry of Home Affairs announced on 20 July 2017 that regulations on slot machines would be tightened over the next two years, including more stringent permit criteria, measures to reduce availability and accessibility, and social safeguards². The Gambling Regulatory Authority of Singapore was formed on 1 August 2022 by reconstituting the Casino Regulatory Authority of Singapore, and is a statutory board under the Ministry of Home Affairs². Societies are allowed to operate slot machines in designated rooms under the Gambling Control Act².

What it means for players

The closures affect jackpot rooms attached to SPL clubhouses, not Singapore's other legal gambling products. Under the Gambling Control Act, societies are allowed to operate slot machines in designated rooms², and access to those rooms has been restricted to members, with a check by The Straits Times finding memberships could be purchased for as little as $5, against the $100 casino entry fee at the time². For the five SPL clubs still running jackpot operations, the rooms are expected to stop taking play by the end of October 2022¹. Singapore Pools remains the only operator legally allowed to run lotteries in the country, and casinos operate as integrated resorts at Marina Bay Sands and Resorts World Sentosa². Entry to the casinos costs $150 per entry or $3,000 per year for locals, a rate set on 4 April 2019². Details of how many jackpot rooms exist outside the SPL, and what happens to their machines, have not been reported.

What happens next

An official announcement on the closures is understood to be made in due course¹. From next season onwards, the SPL will come under the purview of the Unleash the Roar! project, launched in 2021 with the aim of getting Singapore to the 2034 World Cup¹. Privatization of the SPL is set to take place in 2023¹.