Operation of Gaming Machines and Lotteries by Clubs/Societies

When a club or society conducts a lottery (e.g. Tombola, Continuous Lucky Draw, Single Lottery) or operates gaming machines for its members, the authorised promoter of the lottery or the authorised person of the gaming machines of the club or society has to submit the required records and pay gambling duty to IRAS. The method of calculating the gambling duty, record-keeping requirements, due dates for paying duty, and due date for filing the return vary with the type of activities organized.

Requirement to File Form PL-R and Submit Audited Financial Statements

Clubs conducting lotteries or operating gaming machines are required to:

 

1.File Form PL-R (Gambling Duties Return) by the 15th of the month following the end of the month it conducts the lottery or gaming machines (except for scheduled lottery).

For clubs conducting scheduled lottery (one-time), the Form PL-R has to be filed within 15 days from the date of the lottery.

For examples:

• A club operating gaming machines in Aug 2022 will have to submit Form PL-R and pay duty by 15 Sep 2022.
• A club conducting a scheduled lottery (one-time) on 5 Aug 2022 will have to submit Form PL-R and pay duty by 20 Aug 2022.
 
2. Submit audited financial statements (with accompanying notes to the accounts) for the year, together with a reconciliation between the club's annual audited accounts and corresponding figures submitted for gambling duties for the year, within six months from the club's financial year-end.
 
If your club is operating gaming machines, there are additional filing requirements. Please refer to section "Additional Filing Requirements for Clubs Operating Gaming Machines" below.

Form PL-R

Form PL-R is a return for any club or society or other body of persons (incorporate or unincorporate) who operate all types of lottery and gaming machines.

A club conducting a few lottery types (e.g. gaming machines and Tombola) can file the duty payable for these lotteries in a single return.

The form must be signed by a principal officer (e.g. President, Honorary Secretary, Treasurer or management committee member) per Registry of Society's records. 

Clubs have to download the  Form PL-R (Gambling Duties Return)version8 template for reporting lotteries and submit the original copy to IRAS.

Additional Filing Requirements for Clubs Operating Gaming Machines

1. Form PL-R1 (Reconciliation of Soft and Hard Meter Readings)
You need to file Form PL-R1 together with Form PL-R every month. You have to maintain the soft copy of Form PL-R1 and submit this upon IRAS' request.
If you do not file Form PL-R and Form PL-R1 by the due date, IRAS may impose a penalty.
 
2. Audit Checklist for Form PL-R1
Where any exception is noted by the auditors, you are required to submit the audit checklist with details of the exception to IRAS as part of your monthly filing.
Where no exception is noted after the auditor has performed the review on Form PL-R1, you need not submit the checklist to IRAS. However, you need to maintain a copy of the completed checklist for all months and submit it upon IRAS' request.
 
3. Form PL-R2 (Reconciliation of Meter Readings and Actual Cash Flow)
Clubs will complete Form PL-R2 for every month and submit it upon IRAS' request.

Summary of Filing and Payment Requirements

Forms to be filedType of gaming activitiesFrequency of filingWhen to file and pay?

Form PL-R
(Gambling Duties Return)

  • Gambling Machines
  • Tombola
  • Continuous Lucky Draw
Monthly15th day after the end of the month.
Form PL-R
(Gambling Duties Return)
  • Single/Scheduled lottery
Ad hoc basis when a single/scheduled lottery is conductedWithin 15 days after the date of event.

Form PL-R1
(Reconciliation of Soft and Hard Meter Readings)

  • Gaming Machines
Monthly15th day after the end of the month.
Audit Checklist for Form PL-R1
  • Gaming Machines
To be submitted when audit exception is noted15th day after the end of the month.
Form PL-R2
(Reconciliation of Meter Readings and Actual Cash Flow)
  • Gaming Machines
Upon IRAS' requestUpon IRAS' request
Audited Financial Statements for the year
  • Gambling Machines
  • Tombola
  • Continuous Lucky Draw
YearlyWithin 6 months from the club's financial year-end

Note:

As long as the club holds a valid lottery licence and gambling revenue approval, it is required to file Form PL-R even if there is no lottery conducted during a reporting period.

If the audited financial statements does not reconcile with the club's duty submissions for that year, the club will be required to provide reconciliation.

Obtaining Forms PL-R, PL-R1, PL-R2, Audit Checklist for Form PL-R1 and Hard Meter Casing Seal Register


You may download the templates for the Forms below:

 

How to file

To file, submit the hard copy forms by post to:

 

Inland Revenue Authority of Singapore

55 Newton Road

Revenue House
Singapore 307987

 

[Attention: Small Business Division-Compliance and Small Volume Taxes Branch (Gaming Team)]

 

Cheque payment for gambling duties should be mailed separately from Form PL-R and other required documents.

Q1. Can my club submit the soft copy of the Form PL-R (Duties Return) instead of the hard copy to IRAS?

Yes. The club may submit the soft copy of the signed Form PL-R to [email protected]. The club may retain the hardcopy for its record.

Q2. Can my club’s jackpot room supervisor or Finance Manager sign Form PL-R?

No. Your club's jackpot room supervisor or Finance Manager cannot sign Form PL-R unless he is authorised by the club's management committee (Please refer to Q3). Similar to the signatories required for clubs' Income Tax Return Form P1, only the club's principal officers per Registry of Society's records, such as the club's President, Honorary Secretary, Treasurer or management committee member may sign Form PL-R.

Q3. Can the management committee authorise a staff of the club to sign Form PL-R on its behalf?

A staff of the club is allowed to sign the Form PL-R provided the following conditions are satisfied:

There is a letter of authorisation signed by the Secretary or a member of the management committee appointing the assigned staff (with name, designation and identification number) to sign Form PL-R

There are documented minutes of meeting on the club's management committee's decision to delegate the task of signing the Form PL-R to the assigned staff.

 

Notwithstanding the authorisation, the management committee shall remain responsible for the affairs of the club with regard to gambling duties. The authorisation will lapse once the assigned staff leaves the club or his position.

Q4. Forms PL-R1 and PL-R2 require signature by the “club’s representative”. Do they follow the same signatory requirement as Form PL-R?

Forms PL-R1 and PL-R2 can be signed by the club's staff (e.g. jackpot room supervisor) who prepares the form.

Form PL-R1 needs to be marked with audit identification by affixing the audit firm's stamp and providing the name of the auditor who is involved in the review.

Form PL-R shall be signed by the club's principal officers per Registry of Society's records, such as the club's President, Honorary Secretary, Treasurer, management committee member or staff authorised by the management committee (Please refer to Q3).

Q5. For Form PL-R1, a gaming machine has to be checked by a technician if the difference between soft and hard meter readings exceeds $5. The reason for the difference shall be documented in the "Reason if meter difference > $5" worksheet and submitted together with the Form PL-R1 to IRAS. Is this threshold of $5 applicable to variances between the profit based on meters and profit based on manual records in Form PL-R2 as well?

The club may decide on the amount of tolerable variance for Form PL-R2. It need not follow the same $5 threshold in Form PL-R1. However, it is recommended the tolerable variance be set up-front by the club's management (in consultation with the club's external auditors if necessary) so that the staff is clear on the appropriate follow up actions for variances that exceed the threshold when preparing Form PL-R2.

For example, if a club decides that it is reasonable to accept a variance of $20 per gaming machine for purposes of completing Form PL-R2, the club may choose not to investigate variances which are less than $20. Conversely, if any machine shows a variance exceeding the club's threshold, it should be checked and reasons for the variance ought to be documented. 

Possible causes of variance for Form PL-R2 might include:

  • Incorrect recording as a result of human error
  • Not converting credits registered in meters to dollars
  • Faulty machine (or meter)
  • Theft from machine hopper or cash box

     

    Form PL-R2 is to be prepared monthly and maintained as a supporting document to the Form PL-R. Clubs shall submit Form PL-R2 upon IRAS' request.

Q6. My club conducts a scheduled lottery (one-time) on 5 Aug 2022 and operates gaming machines in Aug 2022. Can I report the gambling duties payable for both the scheduled (one-time) lottery and the gaming machines on the same Form PL-R which will be submitted by 15 Sep 2022?

In this case, you will have to submit separate forms for the two types of lotteries conducted in Aug 2022 as the gambling duty payable on the scheduled lottery (one-time) conducted on 5 Aug 2022 has to be reported by 20 Aug 2022(15 days from the date of the lottery); whereas the gambling duty on the operation of gaming machines in Aug 2022 will need to be reported by 15 Sep 2022. Assuming further that you conduct another scheduled lottery (one-time) on 5 Sep 2022 (for which filing is due on 20 Sep 2022), you may then report the duty payable for both lottery types on the same Form PL-R and submit it by 15 Sep 2022.

Q7. My club decides not to claim the cascade payouts when computing gambling duty, what should my club take note of when completing Form PL-R and the GST Return?

If your club does not wish to claim cascade payouts as part of "Total winnings paid" to lower the amount of GST Chargeable on gaming supplies, your club should take note of the following:

  1. Form PL-R: Do not enter any amount under Line 1b (ii) "Jackpot prizes awarded"
  2. GST Return: Do not reduce the standard-rated supplies by the cascade payouts