To legally operate or promote betting and sweepstake activities in Singapore, a person must apply to the Minister for Home Affairs to first get an exemption under the Betting Act or the Common Gaming Houses Act.
This application process is to ensure that betting activities do not proliferate and undermine good social values. It is also an offence for any person to place bets with unauthorised persons.
After a person receives the approval from the Minister for Home Affairs and is gazetted by the Minister for Finance as an exempt organisation in the Betting and Sweepstake Duties Order, any amount received on bets by that person will be subject to duty under the Betting and Sweepstake Duties Act.
IRAS is responsible for the collection of the betting and sweepstake duties.
Scope of Duty
The Betting and Sweepstake Duties Act imposes duty on:
- Any betting made on a totalisator or pari-mutuel promoted by an exempt organisation specified by order in the Gazette by the Minister for Finance;
- Every sweepstake promoted by an exempt organisation specified by order in the Gazette by the Minister for Finance; and
- Any betting at fixed odds on any football game or sporting event where the betting is promoted in Singapore by or on behalf of any exempt organisation specified by order in the Gazette by the Minister for Finance.
Calculating Betting and Sweepstake Duties
Generally, the following betting activities are subject to duty in Singapore:
- Totalisator or pari-mutuel betting (e.g. Toto, horse racing);
- Sports betting (e.g. football betting);
- Sweepstakes; and
- Any other system or method of cash or credit betting held, promoted, organised, administered or operated by an exempt organisation in the Betting and Sweepstake Duties Order.
The method of calculating duty depends on the type of betting activities:
| Type of Betting Activites | Method of Calculating Duty |
|---|---|
Totalisator or pari-mutuel betting in connection with horse racing Sports betting (e.g. football betting with fixed odds) | 25% x (Amount of bets received - Winnings paid out - GST *) |
Totalisator or pari-mutuel betting excluding horse racing (e.g. TOTO)
Any other system or method of cash or credit betting (e.g. 4D and Singapore Sweep) | Effective 1 Jul 2014 ** Up to 30 Jun 2014 |
Sweepstakes | 30% x (Amount contributed towards the sweepstake - GST *) |
*GST = 7/107 x (amount of bets received - winnings paid out)
** The method of calculating duty for totalisator or pari-mutuel betting remains unchanged. For draws conducted on or after 1 Jul 2014, the new duty rate will apply.
Promoters of Betting Activities
Under the Betting and Sweepstake Duties Act, the promoter is the secretary of the racing club or association promoting the betting activity.
Currently, authorised promoters include Singapore Totalisator Board and Singapore Pools (Private) Ltd.
Obligation of Promoters to Submit Statement and Pay Duty
Promoters are required to submit the following to IRAS by the due date:
- Statement of the amount received as bets and amount paid as winnings; and
- Amount of duty payable to IRAS.
Due Dates for Submitting Statement and Paying Duty
| Type of Betting Activities | Submit Statement and Duty Payable |
|---|---|
| Totalisator on horse racing | Within 15 days (or such further period allowed by IRAS) of the last day of the race meeting at which the bets were made |
| Sports betting | Within 15 days (or such further period allowed by IRAS) after the date on which the football game or sporting event in respect of which the bet is made takes place |
| Sweepstakes | Within 15 days (or such further period allowed by IRAS) after the date on which the winners in that sweepstake are ascertained |
| Other types of betting activities (e.g. 4D, TOTO) | Within 15 days (or such further period allowed by IRAS) after the draw date relating to the bets |
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 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.
Your payment will be processed and credited to your tax account within 3 working days if you have provided the correct Tax Reference/ Payment Slip Number in the banking portal.
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
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.
Fraudulent or false statement
You will face enforcement actions if you attempt to defraud the Government by failing to deliver the statement or by delivering a false statement.
Consequences for fraudulent or false statement
The submission of a fraudulent or false statement is an offence.
IRAS may take the following enforcement actions:
- Offer to compound the offence
- Impose a fine not exceeding $1,000 or four times the amount of duty payable, whichever is higher
Offer of composition
FAQs
Q1. What is a 'bet'?
A 'bet' is the staking of money or other value on the event of a doubtful issue (e.g. a horse race, a football match).
Q2. What is 'pari-mutuel' or 'totalisator'?
'Pari-mutuel' is the French word for 'totalisator'. It is a machine that can automatically add up all the stakes received and determines the distribution of the winnings. For example, it adds up the total value of bets received on a particular horse and divides this figure by the number of bets placed to arrive at the dividends (payout) payable.