1. The Ministry of Home Affairs (MHA) will impose restrictions on prizes for games offered at amusement centres and fun fairs, with effect from 1 March 2024.
2. Increasingly, the games being offered on amusement machines at amusement centres and fun fairs are mainly based on chance. High-value prizes (e.g. smartphones and gaming consoles) are also being offered to attract people to play. These two components mean that engaging in such games is not substantially different from gambling.
3. Thus, MHA will be introducing a cap on the value of prizes to reduce the risk of gambling inducement, especially amongst youths. MHA notes that several overseas jurisdictions have also imposed restrictions on the value of prizes. For example, the UK Gambling Commission limits the value of prizes for games being offered in claw machines to £50.
4. The following restrictions will take effect from 1 March 2024:
(a) The value of the prizes must be under $100;
(b) Operators of amusement centres and fun fairs must not offer cash, cash equivalents, credit, merchant vouchers or coupons as prizes; and
(c) The sell-back of prizes to operators will be prohibited.
5. MHA notified all operators of these restrictions on 6 February 2023, to give operators time to manage their existing inventory of high-value prizes. In addition, MHA issued an advisory to operators on 31 January 2024, to encourage them to inform their customers of the upcoming restrictions, including by putting up notices at their premises.
6. From 1 March 2024, operators who do not comply with these requirements on prizes may be subject to regulatory action under the Public Entertainments Act. This includes, but is not limited to, the suspension or revocation of their Public Entertainment Licence, or a fine of up to $20,000. They may also be liable for conducting unlawful gambling under the Gambling Control Act, and face a fine of up to $500,000 and imprisonment for up to seven years.
