The Obstacles for Introduction of Responsible Gambling Policy: A Case Study of Hong Kong and Singapo

1
The Obstacles for Introduction of Responsible
Gambling Policy A Case Study of Hong Kong and
Singapore

• Rex So BBA, MA
• The Society for Truth and Light

2
Reasons for comparing Hong Kong and Singapore

• Similar economic and cultural backgrounds
• Change the long-established gambling policy in
  past decade
• Governments hold different attitudes towards
  gambling

3
Situation in Hong Kong (1)

• The government claims that its long-established
  gambling policy is not to encourage gambling, but
  allows limited legal gambling activities as a way
  to meet the society needs and combat illegal
  gambling

4
Legalization in Hong Kong (2)

• Legalized football betting in 2003
• Principles sufficiently large and continuous
  demand for the important matches which can only
  be satisfied through illegal channels
• the government allows the Jockey Club to
  determine which matches should be opened for
  wagering

5
Situation in Hong Kong (3)

• Lenient to the Jockey Club (rapid development in
  soccer betting)
• Determine to change the betting duty system in
  horse racing
• illegal bookmaker the noble cause for the
  government and the Jockey Club ? strengthen both
  legal and illegal markets

6
Situation in Singapore (1)

• the Singaporean government insists gambling is
  one of the social evil
• In order to prevent capital outflow to illegal
  bookmakers and revitalize local football sector,
  the government allows legal gambling in matches
  involved by local and national team in 1999

7
Situation in Singapore (2)

• Singapore Pools, the sole operator for football
  betting and lotteries
• And now, not restricted in local matches, but
  also accepts bets in other popular European
  matches (but much less than Hong Kong)

8
Situation in Singapore (3)

• Two integrated resorts (casinos) will be built
• Same as her stance in legalization of football
  betting, believe the economic benefits would
  outweigh the social costs
• More funding for programs lowering the social
  costs

9
What is Responsible Gambling

• Not only refers to what gambling operators
  operations
• But also what gamblers and the society should do
  to avoid problem gambling
• Responsibility means responsibility for causing
  and curing the problem

10
What are the problems?

• Excessive gambling behaviour in the society
• Prevalence in adolescent gambling
• ? All the rent seekers in gambling industry
  should take a role (including government,
  operators, gamblers and society as a whole)

11
Who shares the greatest responsibility?

• Individuals?
• Gambling operators?
• NO!
• SHOULD BE THE GOVERNMENT!

12
In what ways (1)

• Most beneficial stakeholder
• Hong Kong 13 turnover goes to government, while
  around 6 to the Jockey Club
• Singapore besides tax, all goes to local
  football development and for charity purpose
• ? tax Two edged sword

13
In what ways (2)

• Administrative power
• Hong Kong the government grants the right to the
  Jockey Club for three years, and subject to be
  renewed
• Singapore Singapore pools is a national gambling
  agency

14
What is the difference

• Higher bargaining power for the Jockey Club
• the Jockey Club is not the subordinate of the
  government
• Chairman of the club is also the Executive
  Council member (highest administrative authority)
• One of the major financial source for the
  government

15
Results

• Singapore recognize the social defects are
  inevitable, but emphasize on economic benefits
• Hong Kong shy with the economic reason,
  emphasize the degree of illegal bookmakers
  penetration

16
Results

• Financial source for preventive measures
• Hong Kong rely on the Jockey Club
• Singapore almost provided by the government

17
Obstacles for responsible gambling policy

• Conventional wisdom
• operators? Individuals?
• Certain extent
• Government? Yes
• ? To be concise, should be the government ethics!

18
Government Ethics

• Ethics is not a primary goal of government in the
  way that, say, national defence, economic
  prosperity, or public welfare are. These and
  other public policy goals are intrinsic to
  government they are part of the reason that
  government is established and maintained. Ethics
  is mainly instrumental to government its main
  purpose is to contribute to the other, intrinsic
  value. Honest government is a good in itself,
  valuable independently of any good policies that
  government may make. The value of ethics,
  however, is still a by-product of government, not
  a good at which government directly aims.
• By Thompson, Dennis F. (1992)

19
Government Ethics

• Prerequisite for good public policy
• Reflects the consistency and ruling ideology of
  the government
• Higher the consistency is, higher the legitimacy
  is

20
Ethics of Tolerance at different degrees

• Respect individual choice, emphasize
  compatibility with liberalization, but
• Singapore consistent with other sin businesses
• Hong Kong deviated from other sin businesses

21
Conclusion

• The degree of gambling participation is largely
  affected by government ethics
• Government ethics ? ruling ideology ? policy
  formulation ? negotiation with the society and
  stakeholders ? operations ? affect individual
  behaviour