Operators of arcades, fun fairs advised to inform customers of prize cap of under S$100
The restrictions, which start on Mar 1, mean operators of fun fairs and arcades can only offer prizes that are less than S$100 in value.
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SINGAPORE: Arcades and fun fair operators in Singapore have been reminded to inform customers of an impending cap on the value of prizes that they can offer.
From Mar 1, the value of prizes must be less than S$100, the Ministry of Home Affairs (MHA) said in a statement on Thursday (Feb 1).
Operators must also not offer cash, cash equivalents, credit, merchant vouchers or coupons as prizes. They will also not be allowed to buy back prizes won by customers.
The restrictions were announced last year.
MHA issued an advisory to operators on Wednesday to "encourage them to inform their customers of the upcoming restrictions". This includes putting up notices at their premises.
The ministry notified all operators of the restrictions on Feb 6 last year, it said.
"Increasingly, the games being offered on amusement machines at amusement centres and fun fairs are mainly based on chance," said MHA.
It noted that high-value prizes, like smartphones and gaming consoles, are being offered to induce people to play.
"These two components mean that engaging in such games is not substantially different from gambling," added the ministry.
MHA said the cap is being introduced to "reduce the risk of gambling inducement, especially among youths".
It noted that similar measures have been taken in other countries, such as the United Kingdom, where the cap on prizes in claw machines is set at £50 (S$85).
When the restrictions kick in, operators who do not comply may face having their public entertainment licence suspended or revoked, or be fined up to S$20,000.
They may also be jailed for up to seven years and fined up to S$500,000 for conducting unlawful gambling.
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In 2021, the MHA invited members of the public to provide feedback on a proposal to implement a cap on the value of prizes for mystery boxes, arcade games and claw machines.
"This cap will be sufficient to address the inducement effect of high-value prizes, without increasing the regulatory burden on operators," it said then.
"We are careful not to over-regulate. We recognise that many Singaporeans consider mystery boxes, arcade games and claw machines as a form of entertainment," the ministry added.
"However, there remains a need for safeguards to ensure that these activities do not induce gambling behaviour and cause social problems."
