S-League clubs breathe sigh of relief; IRAS new lottery tax kicks in

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by Shamir Osman
04:46 AM Apr 01, 2011 SINGAPORE - The Inland Revenue Authority of Singapore's (IRAS) new private lottery tax system kicks in today, after months of feedback from clubs that will be affected.

The nine local football clubs in the Great Eastern-Yeo's S-League initially feared the change would render their fruit-machine operations untenable.

But, after doing their sums, they are now breathing much easier.

The old system saw clubs pay a tax of 37.5 per cent on the amount of money in the cashbox of fruit-machines. The new tax system is completely different, charging clubs 9.5 per cent on the turnover of the machines.

The S-League clubs have found that in real terms, they would either pay only 5 per cent more in tax, or even 5 per cent less, depending on gamers' luck with the machines.

Meanwhile, to improve their ability to raise funds, the Football Association of Singapore (FAS) have arranged for club chairmen to meet a vendor that supplies equipment to the Integrated Resorts.

Among the features that have been introduced to them - a software that studies profitability of individual machines and games, and a grand jackpot pool that will link all nine fruit-machine operations of the S-League clubs, allowing for a grand winner.

"Clubs are now individually studying the viability of the proposal to see if it can help make things better for us, and will make individual choices to buy into the scheme," said Balestier Khalsa vice-chairman S Thavaneson yesterday.

"Those who decide to take it up will share the cost of the system, but individual clubs will bear their own operating costs and keep profits generated for themselves, like they do now," he added.

While no date has been set yet, clubs will reconvene after making their own decision.

Said Gombak United chairman John Yap: "Clubs are not averse to technology if it can improve performance of machines and enhance the appeal and gaming experience for consumers. Our only concern is the cost of the system."

While the IRAS' new private lottery tax system takes effect today, a statement on its website says that "to help clubs transit to the new basis, clubs are given up till April 30, 2011 to change over to the new system". Shamir Osman