Generally, the following gambling activities operated by an authorised betting operator or authorised lottery promoter are subject to gambling duty in Singapore:
- Totalisator betting in connection with horse racing
- Sporting event
- Horse racing with commingling arrangement
- Other totalisator bet
- General bet
- Lotteries
Sweepstakes
Currently, Singapore Pools (Private) Ltd is the only authorised betting operator and authorised lottery promoter.
How to calculate gambling duty
The method of calculating gambling duty depends on the type of gambling activities:
| Type of gambling activities | Method of calculating gambling duty |
|---|---|
| 1. Totalisator betting in connection with horse racing | 25% x (Amount of bets received - Winnings paid out - GST *) |
| 2. Sporting event (e.g. football betting with fixed odds, motor racing) | 25% x (Amount of bets received - Winnings paid out - GST *) |
| 3. Horse racing with commingling arrangement | 25% x (Take out amount – GST *) |
| 4. Other totalisator bet (e.g. football pari-mutuel betting) | 30% x (Amount of bets received - GST *) |
| 5. General bet | 30% x (Amount of bets received - GST *) |
| 6. Lotteries (e.g. 4D, TOTO, Singapore Sweep) | 30% x (Amount of bets received - GST *) |
| 7. Sweepstakes | 30% x (Amount contributed towards the sweepstake - GST *) |
*GST = 9/109 x (amount of bets received - winnings paid out)
Due dates for submitting statement and paying gambling duty
Authorised betting operators and authorised lottery promoters are responsible for submitting the following statement and paying gambling duty to IRAS by the 15th day after last day of the month during which these races/events/draw take place.
1. Statement of the amount received as bets and amount paid as winnings
Late filing or non-filing of Statement
You will face enforcement actions for any late or non-filing of your statement. The filing due date is by 15th of the month following the end of the month you conduct the betting activities.
Consequences for late or non-filing of Statement
Failure to file the statement by the due date is an offence.
IRAS may take the following enforcement actions if you fail to file by the due date:
- Offer to compound the offence
- Impose a fine not exceeding $5,000
Offer of composition
Instead of taking prosecution actions, IRAS may allow you to avoid prosecution by paying a composition amount.
A composition amount not exceeding $2,500 for each offence may be offered depending on the promoter’s past compliance records. A notice will be sent to inform you of the composition amount. You must pay the composition amount and file the statement by the due date to avoid prosecution.
Paying the composition amount
You can pay via Internet Banking Fund Transfer in your bank's portal, quoting the 14-digit payment slip number in the reference field. IRAS bank account details can be found on our payment webpage.
The payment will be processed within 3 working days if the payment slip number is furnished.
Legal actions may still be taken against you if you do not file the statement after paying the composition amount. The payment made will be used to settle any unpaid tax.
Appealing for waiver of composition amount
Appeals can be made via email to [email protected]. Appeals will only be considered if:
- You have submitted the statement by the due date stated in the offer of composition; and
- You have filed the statement on time for the past 2 years
Attending court
If IRAS does not receive the statement and the composition amount by the due date, prosecution actions may be taken. In court, if convicted of the offence, the promoter may face a fine not exceeding $5,000 for each offence.
Late payment or non-payment of Duty
The majority of promoters pay their duties on time. The payment due date is by 15th of the month following the end of the month you conduct the betting activities.
Consequences for late payment or non-payment of duty
IRAS may take the following actions if you fail to pay by the due date:
- Impose late payment penalties
- Appoint agents like the promoter’s bank, tenant or lawyer to recover the overdue duty
- Take legal action
The above list is not exhaustive.
Late Payment Penalty
A 5% late payment penalty will be imposed on the unpaid duty if full payment is not received by the payment due date.
If the duty remains unpaid 1 month after the imposition of the 5% late payment penalty, an additional penalty of 5% may be imposed for each completed month that the duty remains unpaid, up to 50% of the unpaid duty.
Appealing for waiver of late payment penalty
Appeals must be made via email to [email protected]
Appeals will only be considered if:
- You have paid the overdue duty in full, by the due date as stated in the late payment penalty notice; and
- No waiver has been granted in the past 6 months up to date
Appointment of agents
If the duty remains unpaid, IRAS may appoint agents like the promoter’s bank, tenant, lawyer or other 3rd parties with money due to the promoter to recover the duties owing.
When the promoter's bank is appointed as the agent, you will experience inconvenience in using the bank accounts (e.g. being unable to access your bank accounts) until you have fully paid the duty.
Requests made for release of the banks from the agent appointment after 12pm on weekdays will only be processed on the next working day while requests cannot be processed on Saturdays, Sundays and Public Holidays.
Agents will be released from the appointment only after the duty and penalties have been paid in full.
Penalties for providing incorrect or misleading information in the Gambling Duties Returns
Penalties for failure to keep proper records
FAQs
Q1. What is a general bet?
Q2. What is totalisator?
Totalisator means a system that enables persons to invest any money or money equivalent on the outcome of a race, competition, sporting event or other event or process taking place in Singapore or elsewhere. The totalisator pool is divided and distributed as winnings among the persons who win the bets. For example, the total value of bets received on a particular horse race are added up and this figure is divided by the number of bets placed to arrive at the dividends (payout) payable.
Q3. How much gambling duties has IRAS collected?
Please refer to appendices to IRAS' Annual Report for the duties collection.