We refer to the article “Larger jackpot with more prizes for TOTO from Oct 7” (Channel NewsAsia, Aug 28).
Betting amount increase 100%?
It states that “In changes that will take effect from Oct 7, An ordinary bet of six numbers will now cost S$1 as opposed to 50 cents previously, while System 7 will now cost S$7, as compared to S$3.50 previously.
Winning chance fall from 8 to 14m?
The chance of winning the jackpot, however, falls from 1 in 8.14 million to 1 in 13.98 million.”
How much more gaming revenue?
- With these changes, how much more is expected in gaming revenue?
Implications for the poor?
But, perhaps what is more important is to ask what is the likely impact on the poor?
Will most poor people be punting about double what they are betting now?
What are the implications, particularly for lower-income families which have punters now?
Will their arguably, already stretched cashflows be stretched even more?
More revenue = more help for the poor?
Will the increased gaming revenue lead to more help for the poor?
Well, let’s have a look at the past for some clues.
Tote Board accumulated surplus $3.8b, annual surplus $577m?
According to the Tote Board’s annual report 2013 - it had a surplus for the year and accumulated surplus of $577 million and $3.8 billion, respectively.
Why does it need to accumulate so much surpluses?
Donated only $395m?
In contrast, the actual donations paid out (not donation commitments in future years) for the year was only $395 million.
Taxes to Government $1.5b?
Also, its annual contribution to Government (betting duties, income tax and contribution to the consolidated fund) was over $1.5 billion last year.
Why make more revenue if poor don’t get more help?
Will the increased gaming revenue make much of a difference to the poor? Perhaps not very much, unless our policies on giving more of our gaming revenue to the poor change – and we have less annual and accumulated surpluses.
S Y Lee and Leong Sze Hian
P.S. Come with your family and friends to the4th Return Our CPF protest on 27 September 4 pm at Speakers’ Corner https://www.facebook.com/events/516436478486589