To legally operate or promote betting and sweepstake activities in Singapore, a person must apply to the Minister for Home Affairs to first get an exemption under the Betting Act or the Common Gaming Houses Act.
This application process is to ensure that betting activities do not proliferate and undermine good social values. It is also an offence for any person to place bets with unauthorised persons.
After a person receives the approval from the Minister for Home Affairs and is gazetted by the Minister for Finance as an exempt organisation in the Betting and Sweepstake Duties Order, any amount received on bets by that person will be subject to duty under the Betting and Sweepstake Duties Act.
IRAS is responsible for the collection of the betting and sweepstake duties.
Scope of Duty
The Betting and Sweepstake Duties Act imposes duty on:
- Any betting made on a totalisator or pari-mutuel promoted by an exempt organisation specified by order in the Gazette by the Minister for Finance;
- Every sweepstake promoted by an exempt organisation specified by order in the Gazette by the Minister for Finance; and
- Any betting at fixed odds on any football game or sporting event where the betting is promoted in Singapore by or on behalf of any exempt organisation specified by order in the Gazette by the Minister for Finance.
Calculating Betting and Sweepstake Duties
Generally, the following betting activities are subject to duty in Singapore:
- Totalisator or pari-mutuel betting (e.g. Toto, horse racing);
- Sports betting (e.g. football betting);
- Sweepstakes; and
- Any other system or method of cash or credit betting held, promoted, organised, administered or operated by an exempt organisation in the Betting and Sweepstake Duties Order.
The method of calculating duty depends on the type of betting activities:
| Type of Betting Activites | Method of Calculating Duty |
|---|
Totalisator or pari-mutuel betting in connection with horse racing Sports betting (e.g. football betting with fixed odds) | 25% x (Amount of bets received - Winnings paid out - GST *) |
Totalisator or pari-mutuel betting excluding horse racing (e.g. TOTO) Any other system or method of cash or credit betting (e.g. 4D and Singapore Sweep) | Effective 1 Jul 2014 **
30% x (Amount of bets received - GST *) Up to 30 Jun 2014
25% x (Amount of bets received - GST *) |
Sweepstakes | 30% x (Amount contributed towards the sweepstake - GST *) |
Promoters of Betting Activities
Under the Betting and Sweepstake Duties Act, the promoter is the secretary of the racing club or association promoting the betting activity.
Currently, authorised promoters include Singapore Totalisator Board and Singapore Pools (Private) Ltd.
Obligation of Promoters to Submit Statement and Pay Duty
Promoters are required to submit the following to IRAS by the due date:
- Statement of the amount received as bets and amount paid as winnings; and
- Amount of duty payable to IRAS.
Due Dates for Submitting Statement and Paying Duty
| Type of Betting Activities | Submit Statement and Duty Payable |
|---|
Totalisator on horse racing | Within 15 days (or such further period allowed by IRAS) of the last day of the race meeting at which the bets were made |
Sports betting | Within 15 days (or such further period allowed by IRAS) after the date on which the football game or sporting event in respect of which the bet is made takes place |
Sweepstakes | Within 15 days (or such further period allowed by IRAS) after the date on which the winners in that sweepstake are ascertained |
Other types of betting activities (e.g. 4D, TOTO) | Within 15 days (or such further period allowed by IRAS) after the draw date relating to the bets |
Penalties
Late Submission of Statement
For late submission of statement, the promoter may on conviction be liable to a fine of up to $500.
IRAS may compound this offence by collecting from a person reasonably suspected of having committed this offence a sum of up to $250.
Fraudulent / False Statement
When the promoter attempts to defraud the Government by failing to deliver the statement or by delivering a false statement, he may on conviction be liable to a fine of up to $1,000 or four times the amount of duty payable, whichever is higher.
IRAS may compound this offence by collecting from a person reasonably suspected of having committed this offence a sum of up to double the amount of duty payable or $5,000, whichever is less.