Gambling Inside Story

Taming The Casino Dragon By Chia Teck Leng

The only certain thing in life is its uncertainty The great CASINO debate has been raging relentlessly for the past months. By now, every Singaporean must be acutely aware, if not already weary, of the issues involved. The proponents have steadfastly argued for the monetary benefits of such a venture while the sceptics frowned on the social ills which it must inadvertently bring. Unfortunately, it is neither an issue which can be clinically analysed nor expeditiously decided. For it is ultimately a decision which must be determined by economics and politics. It is therefore not my place or intention in this paper to academically debate the pros and cons of setting up a casino in Singapore. Let the populace continue with their debate and then let the politicians decide; which they ultimately must. A complete examination of the workings of the proposed casino and the psyche of punters would necessitate a voluminous and detailed discussion beyond the scope of this paper. For now, I only hope to share my insights into casino gambling as an ex-punter. I wish to highlight in summary form some of the risks suffered by punters and some of the potentially associated crimes. In so doing, I will also put forward some suggestions on protection measures for the Singaporean punter and possible safeguards against casino related crimes. All this in the event the powers-to-be decide to proceed with the project to revive the CASINO DRAGON in our small Republic.

My Experience I started gambling in casinos in 1994. It started off innocuously enough. I was simply passing time on board a cruise ship on a lazy afternoon. By pure chance, I had walked into its only casino; to be accosted by alluringly colourful lights, attractive croupiers and the magical promise of easy money. That casino targeted the mass market and the overall stakes were relatively low. Nevertheless the experience was exhilarating for one so new to it. Like an inexperienced teenager succumbing to the lure of a newly discovered vice, I was soon hooked. Whether by coincidence or good fortune, I could never tell, but I was then a consistent winner. As the stake of my bets increased in proportion to the frequency of my trips to the casinos, so did my bank balance.

Just when I was wallowing in the glamour and triumph of my new found wealth, tragedy struck. In one night alone, I lost three quarters of the million dollars which I had painstakingly accumulated over the past four years. I completely lost my footing. That, unfortunately was also the turning point. As I tried in vain to recover my winnings, I made even greater losses. At about this time, the unsavoury side of casino gambling began to rear its ugly head. The casinos and junket operators began to harass me for debts owed. I soon became desperate. On many occasions, I was suicidal. When the depression was overpowering late one night, I made a goodbye tape in the event...... As I struggled under a mountain of debt, my thoughts centred only on how to repay the money and how to win it all back. I began to take outrageous risks. Against my better judgement, I falsified bank documents in order to obtain funds. I reasoned to myself that the borrowing was only temporary and I would return every cent from my eventual winnings. Alas, it was not to be. The more I borrowed, the more I lost. By this time, I was already quite familiar with the workings and the mechanics of casino gambling. I did my calculations. In order to have a chance in recouping my enormous losses, I had to seek out bigger bets. So I started to travel to the most exclusive casinos in Australia and London where the biggest bets in the world are placed. Soon, I was placing a million dollars bet a hand and winning or losing ten million dollars or more on every trip. At the point when I was arrested, I was purportedly the second biggest casino gambler in the world.

Casino - A Brief Modus Operandi Any discussions on the risks to punters and the corresponding safeguards can only begin after a brief examination of the modus operandi of a casino. How does a casino make its money ? A casino is simply a commission earner. A well run casino does not take risks like a gambler. Instead, by a process of balancing the stakes it offers for each table game against its overall business volume, the casino ensures that its daily wins and losses will never be sufficiently large to affect its viability. The rest is taken care of by the natural

laws of mathematics and statistics. For the table games it offers, the casino, also known as the house, sets rules which tweak the games in its favour. This is not to say that dubious schemes or mechanisms are employed to cheat punters. On the contrary, table games in established casinos are strictly regulated and played to exacting rules. Only the way in which the game is played is skewed in favour of the house. In this way, the casino enjoys what is commonly referred to as the House Advantage. What's the House Advantage ? This is the percentage of theoretical win which the House enjoys. It represents the mathematical odds in favour of the casino in the long term. Statistically, the casino always wins against the collective mass of punters in the long term in accordance with the theoretical House Advantage. But the punter can nevertheless enjoy short term wins due to the non-linear behaviour of the gaming model. To a large extent, this phenomenon provides the motivation and accounts for the existence of punters and casinos alike. Although the house invariably wins everyone as a whole all the time, some punters can still expect to win some of the time. It is this psyche of hope and quest to be among the lucky some which motivates a punter to gamble even if he is fully aware of the existence of the house advantage. In some places, the house advantage of the more popular table games are readily available. Some are even prominently displayed, such as those in the exclusive clubs in London. To understand the underlying mathematics of house advantage, consider the popular game of Baccarat. In this game, the punter has essentially two choices; he may bet either on banker or on player. Ignoring the effects of the specific dealing sequence in the game, the chances of a win on either banker or player is practically even. So in the long term, the punter has an equal chance of making a correct or incorrect bet in the game of Baccarat just as he would in tossing a coin. Statistically, therefore, the house is not in any better position compared to the punter. To make commercial sense, the house introduces an artificial mechanism to create the house advantage. In this case, it is called a banker's commission. A five percent commission is deducted from the payoff to a punter each time he wins on a bet placed on banker. As there is an equal chance of a punter winning on player and banker in the long term and as the five percent commission is only levied

on banker bets, the average results in a house advantage of 2.5% in favour of the house. And this 2.5% is the world-wide acknowledged theoretical win in a Baccarat game. So for every dollar placed in any Baccarat bet, the house can expect to win 2.5 cents in the long term. This margin, besides going towards paying for the casino's expenses can be expected to make a respectable contribution to its bottom line. The individual house advantages of the other popular casino games are as follows : Conventional Roulette

2.7%

American Roulette

5.2%

Blackjack

0.7% - 5.0% (depending on the sophistication of play)

Caribbean Poker

5.5%

Slot Machines

1.0% - 30.0% (depending on casinos

Having assured itself of an advantageous position over the punters, the next thing a casino does in order to ensure a good revenue stream is to package its products. How to attract punters? The pool of casinos scattered throughout the world can be categorised roughly into three major types. These are : a. Mass Market Casinos b. Resort Casinos c. Exclusive Clubs a. Mass Market Casinos Many of the casinos in Macau are fine examples of the mass market casinos. They derive the bulk of their business from the middle to low end punters from Hong Kong and Macau. Some of them do cater to high end rollers but the volume of this business is relatively small if compared to the exclusive clubs in Europe and the US. These mass market casinos are basically grind shops. They employ cheap labour who are rude and uncouth; scantly aware of the level of service expected by high end rollers. They provide

only the basic glitz and glamour for their undemanding clients and in return, they thrive on the sheer volume. The perks they provide are similarly scant. A regular punter from Hong Kong may be given complimentary ferry tickets to Macau. One who has demonstrated some measure of loyalty may even be provided with free accommodation. But that's about it. Individually, the yields from punters in this lower end market are small. Collectively, this group of punters are among the most lucrative, being undemanding in their expectations and providing no problems on debt collection since they are never extended credit in the first place. b. Resort Casinos As the term suggest, the casinos in many resort areas around the world, such as those in Las Vegas, Monte Carlo, Lake Tahoe and Johannesburg fall into the category of resort casinos. These casinos cater mostly to foreign traffic and derive their business from both travellers as well as serious gamblers. For their niche clients, they offer both the excitement of gaming as well as the attractions of their resort facilities. Their croupiers are well trained to be both professional and pleasant. Their overseas businesses are often subtly advertised by way of marketing offices located around the world. In terms of perks, they offer the standard food and accommodation to their lower end punters. To those who qualify under their stipulated minimum check-in amounts, they also offer free air tickets and a modest cash rebate. To the few big players, referred to in the industry as whales, they offer the best they have. These usually include a personalised butler service, the use of villas, private gaming saloons as well as significant cash rebates. For the few top players in the industry, private jets are chartered for the utmost comfort in travel. To casinos in this category, their business depend largely on the tourist dollar, supplemented by the volume from regular big time players. In the 1990s, these casinos also routinely offer credit to their big clients. However, the various financial catastrophes around the world during that period and the resultant massive credit defaults have since rendered these casinos much more prudent in their credit policy. To offset the costs of the perks offered to their foreign guests, these resort casinos often enjoy preferential tax treatment on their foreign sourced income for which they have to identify and maintain a separate record.

c. Exclusive Clubs There are only a handful of casinos in the world which qualify as truly exclusive clubs. These are the very old establishments in London which derive a significant portion of their business from the rich and famous around the world and the whales in the gaming industry. Besides the usual perks offered by the big boys in the industry, these clubs tailor their offers according to the demands of their individual clients. Everything is negotiable, even the size of table limit which is mandatory for all players. For this niche market, the ultimate attraction is the exclusivity and the confidentiality which goes with it. So what are the risks? The punter in casino gambling not only suffers from the handicap of the house advantage. He is also subjected to a host of psychological pressures inherent in human weaknesses. A good punter must satisfy three criteria. He must know the game well, exercise good money management and enjoy a bit of luck. Few can consistently satisfy the first two criteria and none can control the third. When a punter wins, he is tempted to continue in the belief that he could win more. When he loses, he is tempted to chase after his losses. In this trap, the punter is often lured unwittingly into a situation whereby he is ultimately conquered by his own weaknesses and the statistical behaviour of the gaming model. Many an educated and discerning punter has been tragically decimated over the years. The risk to the uninformed and the new convert must be horrendously larger. Any Safeguards? Any possible safeguards must invariably correlate to the risks enumerated above. Let us examine these one at a time. a. Location We can assume that a casino in Singapore must logically fall under the resort type. For one, it is unlikely that the government would allow the operation of a mass market casino to singularly target its indigenous population as potential clients. For another, the authorities as this stage would neither have the experience nor the networking and credentials to operate an exclusive club. Moreover, a resort casino would be

complimentary to the Republic's objective as a tourist hub; bringing in both the tourist dollar as well as developing the infrastructural facilities envisioned a millennia ago. The logical site must therefore be one of the existing entertainment areas. Sentosa naturally comes to the mind. The place already has fundamental resort supporting facilities and possesses enough space to allow for further development. More importantly, it is near but not that near. In considering location, one must be mindful of the Macau syndrome. It is a known fact that because of the proximity of the casinos in Macau relative to its residential and business centres, many housewives, workers and business executives literally steal time to gamble in these places. The social ills and resulting low work efficiency associated is both devastating and worrisome. b. Barriers To Entry If the principal motivation of a casino in Singapore is to attract foreign revenue and stem the outflow of the local gamblers' dollars, then a barrier to entry must be erected to protect those who may not be able to afford the stakes. The mass media has so far speculated on a creative but somewhat contentious scheme. This is a plan to admit only those who enjoyed a certain income level. I am of the view that this way of screening would be neither effective nor politically correct. It cannot be effective as the reported income of a person is not necessarily reflective of his net worth and it would be even more difficult and cumbersome to try and verify the net worth of a person. It is also politically incorrect as the underlying principle can be viewed as condescending in approach and may even be challenged outright as discriminatory. I believe that the imposition of a substantial entrance fee is a better way to erect an effective and politically acceptable barrier to entry. The proposed casino may be run like a private club. An entrance fee of say $10,000 may be imposed on local members. Admission to foreigners would be free. The current group of Singaporean gamblers who could afford to regularly gamble overseas would not find this fee unreasonable or prohibitive. The convenience factor alone, not to mention the implicit status and attraction of novelty would more than make up for the pain of the one-time fees. The

non-habitual or novice gamblers who form the bulk of the remaining Singaporeans on the other hand would probably be put off by the perceived exorbitant fees. As this scheme allows for a freedom of choice, it is thus politically correct. And there is an added bonus. The amount of entrance fees collected, which would be substantial, may be channelled into charitable or gambling related rehabilitation purposes. This club concept is adopted by casinos in London although they do not impose any admission or membership fees. As in other places, the imposition of fees in clubs in London would be considered as counter-productive to the commercial objective of a casino. In Singapore's context however, I believe that it will contribute towards reducing the social menace associated with gambling and more importantly, it is enforceable without attracting too much undue protest.

c. Operating Hours Most casinos, apart from the clubs in London and the cruise operators in other parts of the world, operate on a 24 hour basis. The 24 hour arrangement being optimal for maximising profits. The 24 hours operation however is hugely detrimental to the punter. The longer a punter is engaged non-stop in a table game, the higher the probability that he will lose in accordance with the workings of the house advantage and the laws of statistics. And the longer the play hours, the higher the chances of fatigue and wrong decisions. The gambler is ultimately human, subject to all the frailties of the human body and mind. The approach must therefore be to divide the Singapore casino into two distinct parts; the halls catering exclusively to local punters and the VIP halls catering to foreigners. The local halls should observe a restriction of operating hours; perhaps similar to the 2 p.m. to 6 a.m. rule observed in the London clubs. The VIP halls, naturally do not need to conform to this requirement. d. Table Stakes Every gaming table in a casino has a maximum betting limit; commonly referred to as the

Table Limit. Without this limit, the exposure to the casino would be tremendous and many of the popular schemes which punters have so ingeniously devised for games such as Baccarat would have actually worked. The significance of this table limit to the punter is also important in another way. By having higher table limits, there will be a tendency for the punter to place bigger bets. Such bigger bets naturally causes the punter to suffer larger exposures. In gambling, the greatest risk occurs when the punter loses more money than what he can afford. At this point, his mental control breaks down as he becomes desperate and he no longer functions in a rational manner. In this condition, he becomes a threat to both himself as well as the community. He will contemplate all options; however risky and absurd they may be. Such is the human weakness of attachment to material wealth and form the basis for him to risk everything in his attempt to re attain the status quo. The bottom line is therefore to prevent one from losing to the point of bringing pain. And one of the means of achieving this is to carefully regulate the table limits. The gaming table limits in the halls for locals must be set at an appropriately low level. Those in the VIP halls of course do not require such considerations and following industry practice; their limits may be set in accordance to the reserves of the casino, the front moneys of the punters and the mathematics of the game. An illustration of table limits in existing casinos is provided in the following table :

Table Limits Casino Games

Mass Market

Resort Type

Exclusive Clubs

Roulette

USD 50 - 100

USD 100 - 2,000

USD 2,000 - 6,000

USD 100 - 500

USD 1,000 - 10,000

USD 10,000 -50,000

USD 1,000 -

USD 10,000 - 100,000

USD 100,000 - 750,000

USD 500 - 2,000

USD 2,000 - 7,500

(Max bet on a single number) Blackjack (Max bet on a single box) Baccarat (Max bet based

7,500

on table differential) Caribbean

USD 100 - 500

Poker (Max bet per player)

e. Credit The extension of credit is an accepted practice in the gaming industry. It is supposed to facilitate the convenience of players who may otherwise be burdened with the hassle and risk in transporting large sums of money to the casinos and back. In reality, the credit extended is often a punter's Achilles' heel, causing him to overextend himself and leading to eventual tragedy. As I stated earlier, the practice by casinos to extend credit was rampant in the 1990s but such activities have since been subdued due to the default of massive debts. The obvious conclusion here must be the total ban on credit for Singaporean punters. I suspect that in setting up a casino in Singapore, the gaming act will have to be updated to make casino gambling legal. During this update, a clause should simultaneously be

included in the act to specifically render credits and loans extended to Singaporeans for gambling illegal, null and void. Such an action to prohibit legal redress in cases of gaming related loan defaults will protect the local punter. Together with vigilant policing, it will reduce significantly one of the major risks to a casino gambler. The contrary may be practised with regard to overseas punters. The gaming act must be amended to specifically allow for redress in the case of loans or credits extended to a non-Singaporean for the purpose of gambling. The junkets and casino operator must be able to extend credit to foreign punters on an informed basis, with full recourse to debts outstanding. Although there are credit bureaus in Europe, the US and Australia which cater exclusively to screening punters for their credit worthiness, I find the manner in which the surveillance are carried out inadequate; especially on foreign based clients. Besides the routine checks on bank relationships, which are frequently ineffective because of secrecy acts, the bureaus normally rely on network assessments which can be vague and outdated. Of course the concern here is a commercial one and is wholly irrelevant to the government if the casino is ultimately to be a private enterprise. Nevertheless, the law must be carefully amended to achieve the desired results. Examples of the limit of credit access by punters are as follows : Illustration of typical Casino/Junket Debt offers Type of Player

Maximum line of credit

Period Of Credit

Regular Player

USD 5,000 - 50,000

3 days

Premium Player

USD 50,000 - 500,000

7 days

USD 1,000,000 - 10,000,000

Negotiable

Whale (Typically defined as a player who checks in a min of USD 1 mil)

f. Junket Operators Many casinos, particularly those in the US and Australia are legally allowed to employ the services of Junket operators. The primary role of these Junket operators is to lure

punters to the casino. In many instances, the Junkets fulfil a secondary role of extending credit. These Junkets are usually native to the cities in which the punters come from and are therefore in a better position to assess the credit worthiness of the punters and to recover the eventual debt due. In the context of our discussion, Junkets must never be allowed to court local Singaporeans, period ! For foreign punters, licensed junket operators of which several well organised and experienced ones already exist, should be allowed to market their businesses. The potential large markets in casino gambling in recent years include China, Taiwan, Hong Kong and Japan. These markets are particularly worthy of mention as they are either places where casino gambling is prohibited or where the nearby casinos are unsuitable for one reason or another. g. Perks I have already enumerated some of the perks commonly offered by casinos at the beginning of this paper. These perks are simply commercial incentives to lure the punter. They are offered to the punters in proportion to their level of play. For Singaporean punters, none of these incentives should be allowed. In any case, the restrictions recommended above would have placed the Singaporean punter as part of the mass market ineligible for perks; thus rendering a further debate of this issue purely academic. On the contrary, the foreign clientele should be aggressively pursued by way of incentives. Cash rebates in accordance with common market practice should be awarded. The complimentary airfares, food and beverage and accommodation must be a standard offer; with the actual level of incentive commensurate with the check-in amounts. The offer of credit and the use of Junket operators must also be considered. To encourage the casino to pursue foreign punters despite the lower potential profits due to perks offered, tax breaks may be given. In return, the casino will be required to submit detailed information and keep separate records of this foreign based income. h. Confidentiality and Secrecy The issue of confidentiality and secrecy is of paramount importance in the gaming

industry. Whilst the mass market punters are not necessarily concerned with their identities and any inadvertent recognition, the profiles of larger players are often regarded as extremely sensitive. The identities of whales and their performance in the casinos are normally classified and never revealed. Exceptions are few, but they do exist. So whilst the issue of confidentiality and secrecy may not be a worry for the Singaporean punter, the identities of foreign players, especially the whales must be handled with care. Singapore is ideally positioned in terms of jurisdiction and timing to attract the top gaming business in this part of the world. Like I stated earlier, the markets with huge potentials are China, Taiwan, Hong Kong and Japan. For a variety of reasons, including political and geographical ones, the regular gamblers as well as the whales in these places would find Singapore the ideal place. It is my belief that having taken into account the unique needs of these gamblers and thus given the proper planning, the potential financial gains from gaming alone would make the whole tourism revenue pale in comparison. (See also The Financials discussed later) i. Money laundering and other crimes The risk of money laundering is historically associated with gaming. However, with the restrictions suggested being imposed on the local punters, any such risk from the local population would be manageable. The stakes are inherently small and the requisite buy-in and pay-out must be over long periods for any scheme to be effective. In such a case, any trend or pattern suggesting irregularities would naturally become obvious over the extended time. On the other hand, the risk of money laundering by overseas syndicates would be much more severe and profitable. In this case, a close monitoring of fund movements, their sources and destinations vis-à-vis the punter's origin, the pattern of play versus the checkin amounts and other details would to a large extent reveal any suspicious transactions. Other crimes such as prostitution, loan sharking, petty thefts and robberies can be expected to increase as a result of the legalising of casino gambling. This is inevitable and must be handled within the framework of the current law enforcement system.

j. Record Keeping Record keeping is important for a close watch over this volatile industry. The records for individual local punters cannot and need not be particularly exhaustive, especially in view of the inconspicuous nature of play in the mass hall and the resulting difficulty of accurate records. The casino however must be mandated to keep exhaustive records on overseas punters, especially on the bigger and more regular players and the whales. A list of mandatory records, including but not restricted to the following should be kept: a. Patron's personal & passport particulars b. Bank references c. Dates of visits d. Check-in money and its origin e. Record of pay-out and its destination f. Time & Duration of play g. Average bets h. Actual wins and losses i. Credit profile j. Existing records with other casinos Some of the above records, such as average bets and wins and losses, may only be accurate if the punter is of a calibre to qualify for play in private saloons. As a whole, these records should be sufficient to isolate trends and identify trouble spots. They will certainly help in assessing individual punter's profitability and may even aid in determining credit worthiness but I guess these areas would only be of commercial interest to the casino itself. Government regulation and self-help The existing forms of governmental regulation range from an almost hands-off approach as in Las Vegas to the heavily regulated settings in Australia and London. In the heavily regulated markets, the casinos are required to submit daily reports to the gaming authorities on their performance and cash flow. In addition, they are also required to seek approval before introducing new games, ceasing old ones, modifying rules of play and

adjusting table limits. From time to time, the gaming commission is invited to arbitrate in disputes and contentions. In Perth, Australia for instance, the gaming commission has a twenty four hour counter in the casino itself to facilitate complaints and arbitration. The rationale, as in both Australia's and London's case is to protect the punter. One specific law of interest in Melbourne and Sydney is the self-exclusion provision. Under this law, punters who feel that they have succumbed to the addiction of gambling and wants out may sign an undertaking with the casino to legally bar themselves from its premises. They effectively become persona non-grata and risks arrest if they breach their undertaking. The procedures for reversing their decision later are cumbersome and this law is one effective way in assisting the weak-willed to quit gambling. Self-help groups such as Gamblers Anonymous have been established in the US, Australia and London to counsel gambling addicts. These professionals operate an effective rehabilitation program in helping compulsive gamblers kick their habit. In Perth, Australia for instance, the availability of their help is given prominent coverage in terms of large posters in the casino halls. From time to time, they are also advertised in the T.V., compliment of the casinos. In Singapore's case, it is imperative for the government to set up a stringent gaming commission devoted exclusively to the monitoring and control of casino gambling. Selfhelp groups dedicated to rehabilitating gambling addicts must also be encouraged to flourish.

The Financials It is interesting just to note the typical financials of the punter, the junket operator and the casino, if only for the monstrosity of the figures involved. An illustration is provided below : a. Punter Take the case of the Singaporean Baccarat player. Say his average bet is $100. The time

taken for the turnaround of each game will depend on the number of players, the time each punter takes to deliberate and the speed of the croupier in the payoffs. Say each game takes an average of five minutes; from the time the bets are placed to the time it is paid off. By remaining in the casino for four hours, the punter would have played 48 times. His turnover would be $100 X 48 = $4,800. If he frequents the casino twice a week, his turnover would be $499,200 a year. Based on the house advantage of 2.5% for Baccarat, the punter will make a potential loss of $12,480 a year or $1,040 a month. Of course, his actual wins and losses will fluctuate from trip to trip but statistically, he is exposed to this loss in the long term. Now consider the case of the foreign regular player. Say his average bet is $2,000, play time is also 4 hours and assume the same turnaround time of 5 minutes. His turnover per day will be $96,000. If we assume that he visits the casino once every quarter and each time spends 3 days, his annual turnover will be $1,152,000. His potential loss of 2.5% is $28,800 per year. But as a regular player, he is probably entitled to cash rebates. The market average rebate for a regular player with good credit standing is 1.1% of turnover. Taking into account this rebate, his potential loss drops to $16,128 per year. b. The Junket Operator Consider the Junket operators who as a group of 10 collectively control 2,000 foreign regular punters. The market rate commission payable to junkets average 0.4% of punter's turnover. The annual collective commission to the junkets based on the above is $9,216,000 and each junket potentially enjoys a gross commission per year of $921,600. c. The Casino Based on the above scenarios and assuming there are 2,000 local punters and 2,000 regular foreign punters (as illustrated above), the casino financials based on Baccarat alone is as follows : Entrance fee of $10,000 each

$20 million

Annual potential wins from 2,000 local punters

$25 million

Annual potential wins from 2,000 foreign punters

$23 million

These figures are purely for illustration purpose and only considered the game of Baccarat. The assumed punter population in the illustration in conjunction with the frequency and duration of visit can be comfortably serviced by a casino size of approximately 50 tables. In geographical terms, this is the size of a small resort casino. The actual Singapore casino is likely to be larger. Depending on the actual size of the casino and the number of gaming tables ultimately available, the potential gross profit for the casino and the junket operators is likely to be many times more. Summary The financial implication of the casino to Singapore is undoubtedly enormous. There are also substantial risks areas which will not only threaten the very fabric of our society but also introduce potential crimes not otherwise envisaged. I believe that these risks can be mitigated through the employment of certain safeguards, the diligent enforcement of well planned laws and the assistance of self-help groups. I confess that while I may not personally favour the set-up of a casino in Singapore, I nevertheless feel that the time has come when we may not be able to isolate ourselves for very much longer. The majority of the countries near by, especially those in ASEAN are all contemplating the set-up of casinos; acutely aware of the potential profit from the huge gaming market. To remain steadfast in our stand against having a casino would mean both the loss of this lucrative market and the continuing leakage of exchange due to local regular punters visiting overseas casinos. We may have no choice but to revive the Casino Dragon. But if we are to have the Dragon, then we must at least seek to tame it.

Ed: Mr. Chia, a former finance manager of Asia Pacific Breweries (Singapore) Pte. Ltd., is currently serving a 42 year sentence for cheatings banks of $117 million to feed his gambling habit. He writes this paper from prison.