The authorities will review gambling regulations if loot boxes become a significant driver of gambling behaviour, said Minister of State for Home Affairs Sun Xueling. Sun was responding to questions raised by lawmakers in parliament on a new bill to tighten casino regulations in Singapore and crack down on casino-related offences. The bill, which proposes an amendment to the Casino Control Act (CCA), was passed on Sep. 10. It criminalises acts such as breaching visit limits applied for by one’s family, withdrawing bets after they have been placed, and recording gaming machines within the casino.
Background
The discussion on loot boxes arose during the reading of the new bill on Sep. 10. Tanjong Pagar GRC Member of Parliament (MP) Melvin Yong highlighted that the authorities currently do not regulate chance-based loot boxes as gambling, provided there are no in-game monetization facilities. However, Yong argued that loot boxes are essentially gambling disguised as games. He cited research indicating that children who play games with loot boxes are more likely to develop gambling problems in adulthood. Yong urged the Ministry of Home Affairs (MHA) to study this issue in the local context and consider stricter regulations.
Loot boxes are gambling too: Yong
During the parliamentary session, Yong referenced an article from The Guardian that discussed the link between online gaming and gambling addiction. The article noted that children exposed to loot boxes are significantly more likely to face gambling issues later in life. An Australian researcher mentioned that the favourable odds in such games could mislead players into believing they have a higher chance of success in actual gambling. Yong warned that future games might incorporate loot boxes and virtual tokens, allowing players to gamble indirectly. He called for the MHA to examine whether a tougher stance on loot boxes is necessary.
Government will monitor landscape: Sun
In response, Sun Xueling assured that the authorities would continue to monitor the situation. “Our current approach to regulating loot boxes is a balanced one. It aims to safeguard against gambling inducement, rather than gaming. We will continue to monitor the landscape closely,” she said. Sun pointed to restrictions imposed by the MHA in March, which limited the value of arcade prizes to less than S$100 due to the higher risk of gambling inducement with larger prizes. She concluded, “Similarly, if we find that loot boxes are becoming a significant driver of gambling inducement, we will review our regulations.”
Future implications
The amendment to the Casino Control Act is part of a broader effort to address newer forms of gambling brought about by technological advancements, such as loot boxes in video games and mystery boxes. Currently, gambling in Singapore is regulated by various government agencies, including the Casino Regulatory Authority, the Tote Board, and the Singapore Police Force. As the boundaries between gaming and gambling continue to blur, the government may need to adapt its regulations to protect vulnerable populations, particularly children, from the potential harms of gambling disguised as gaming.
