From Thursday, April 4, 2019, gamblers who are Singaporeans and Singapore permanent residents (PRs) will have to pay more to enter the casinos in Singapore.

50 percent more expensive

It will cost 50 percent more just to enter the casinos at the two local integrated resorts (IRs).

The 24-hour daily levy for Singaporeans and PRs will increase from S$100 to S$150, while the annual levy will go up from S$2,000 to S$3,000.

Sudden increase

The announcement was made by the ministries of trade and industry, finance, home affairs and social and family development the day before on Wednesday.

Increase in levy timed to big announcement

The move comes amid plans by the gaming industry to expand their operations.

The goal is to make the businesses of the IRs viable, while keeping gambling in check.

This levy increase comes as the two IR operators, Marina Bay Sands and Resorts World Sentosa, are given exclusivity to continue to run casinos in Singapore until 2030, having announced their commitment of around S$9 billion in non-gaming investments.

The Singapore government is also using the higher levies to keep problem gambling under control.

How increase in entrance fee was calculated?

The increase in entry fees took into account several factors, including the problem gambling situation, household income levels and prices of alternative gambling locations in the region.

Other measures: Delayed levy activation

From August 2019, patrons will only be able to purchase a second daily or annual casino entry levy if the first one is expiring within six hours.

The levy will be automatically activated after six hours of purchase.

This prevents impulse purchases of levies and slows down marathon gambling sessions.

According to the National Council on Problem Gambling (NCPG), the probable problem and pathological gambling rate has decreased from 2.6 percent in 2010 when the IRs first opened to 0.9 percent in 2017.

Packaged negotiations between government and IR operators

Casinos have their revenues taxed by the Singapore government.

Gross gaming revenue is currently subjected to casino tax rates of 5 percent for premium gaming and 15 percent for mass gaming.

Taxes on gaming revenues will be increased in February 2022 -- after the current moratorium expires.

A new 10-year moratorium will subject the IRs to tiered tax rates of between 18 percent and 22 percent for mass gaming, and from 8 percent to 12 percent for premium gaming.

If the IR fails to meet its investment commitments, flat tax rates of 22 per cent will apply on its mass gaming revenue, and 12 per cent on its premium gaming revenue.