Referendum sought on Singapore casino

Beth Jinks

Friday, April 8, 2005 | 9:35 a.m.

Singapore's opposition Workers' Party called for a referendum on whether a casino should be allowed in the city-state, saying that gaming will breed fraud, money laundering and gambling addicts.

The party, which has one member in Singapore's 94-member parliament, maintains a casino would increase "social ills" and that government arguments about the potential economic benefits "have not been convincing," James Gomez, second assistant secretary general, said in an e-mailed policy statement Thursday.

The government will announce on April 18 whether to end a casino ban and allow gaming within an "integrated resort" that will include a convention center, retail outlets and restaurants. It is trying to boost tourism to help combat a slowdown in the island-state's $104 billion economy.

The casino proposal, which faces opposition from some community and religious groups, has attracted 19 submissions, the government said in March. Las Vegas-based companies including Wynn Resorts Ltd., MGM Mirage, Las Vegas Sands Corp., and Harrah's Entertainment Inc., as well as Australia's Tabcorp Holdings Ltd. said they submitted initial proposals for the project by a Feb. 28 deadline.

Singapore's cabinet will decide whether to allow casino gaming in the city-state without a referendum or a vote by members of parliament, Lim Hng Kiang, minister for trade and industry, said March 8. The country already allows betting on horseracing, soccer and lotteries.

"There is a risk that the attraction of 'integrated resort' sugar-coated to be a family entertainment center will attract both parents and children to the same venue known for its gaming culture," the Workers' Party policy statement said. "Let the people decide directly on the matter."

The government has said it would restrict its residents' use of any casino, aiming to reduce the risks of social problems often associated with the gaming industry. The casino would have to restrict credit for Singapore citizens and permanent residents, who would be charged membership fees of S$100 a day or S$2,000 a year. Tourists would enter free.

The Workers' Party's Low Thia Khiang is one of only two elected opposition members of parliament in Singapore, where the People's Action Party, founded by the island-state's first Prime Minister Lee Kuan Yew, has ruled since prior to independence in 1965.

Singapore aims to double annual visitor arrivals to 17 million and triple tourism revenue to S$30 billion ($18 billion) by 2015. Without a casino to attract tourists, it may take longer and cost more to achieve that target, Lim Neo Chian, chief executive of the Singapore Tourism Board, said in an interview March 30.

If allowed, a casino in Singapore may generate about $1.7 billion of gaming revenue a year, Merrill Lynch said in a March 16 report, with "international premium players" making up 13 percent of the total. The integrated entertainment center would match gaming income from restaurants, conferences and malls, according to Merrill Lynch estimates.