Additional revenue from the good financial performance of the two integrated resorts and the utilisation of it11 Jan 2011
Date: 11 January 2011
Parliamentary Question for Oral Answer by Ms Denise Phua Lay Peng:
To ask the Minister for Finance (a) how much additional revenue will the Government be receiving as a result of the good financial performance of the two integrated resorts; (b) what is the breakdown of the revenue attributable to the casinos and other operational units; and (c) what are the likely ways in which this additional revenue will be utilised.
Reply by Finance Minister Tharman Shanmugaratnam:
1. The two Integrated Resorts (IRs) collect casino entry levies on behalf of the Totalisator Board. They also pay betting taxes and GST on their business receipts to the Government. However, the entry of the IRs has also led to a restructuring of the gaming industry as a whole. Hence, while the IRs have brought in new revenues, collections from other gaming activities such as lotteries, horse and sports betting and fruit machines operated by clubs have fallen.
2. Taken together, the net increase in collections by the Tote Board with the entry of the IRs was about $130m in the eight months between April and November 2010. Likewise, the net increase in revenues to the Government with the entry of the IRs was about $420m over the same period.
3. The Tote Board will pool collections from the casino entry levies with their recurrent surpluses, which go towards funding activities benefiting the community. Just to cap, these range from educational and health programmes, to sports and to arts & culture. Some of Tote Board's on-going commitments include the Tote Board Social Service Fund, the Tote Board Community Healthcare Fund, the Yellow Ribbon Project and the Community Chest.
4. The revenues collected by the Government from the IRs, like those from the gaming industry, flow into the Consolidated Fund. They are not earmarked for specific purposes, but go towards funding of the Government budget as a whole. This allows Government the flexibility to channel funds to areas with the greatest needs and strategic priority.