This is the first in a series of contribution pieces to highlight the opportunities and challenges of integrated resorts and help Korea to better cope with heated competition among Asian countries to attract more international tourists and revitalize the economy. – ED.

In 2004, Singapore's minister for trade and industry's announcement in parliament that the city state was open to the possibility of having a casino was a major shock. Casinos had been banned in Singapore since the nation's founding, and any suggestion to introduce them, whether from within the government or external parties, was always met with a firm "no." Founding Prime Minister Lee Kuan Yew even told a casino magnate, "Over my dead body."

The world in 2004 presented numerous challenges for Singapore. After recovering from the Asian financial crisis of the late 1990s and enduring the global economic downturn following the dot-com crash and the Sept. 11 attacks, Singapore was hit hard by the SARS outbreak in 2003. These global economic downturns, health crises and geopolitical uncertainties prompted a major rethink of the Singaporean economy.

By then, Singapore was losing its competitiveness as a destination for tourism and business and was perceived as dull and unexciting. Cities worldwide were reinventing themselves, and it was crucial for Singapore to do the same to be seen as a vibrant, dynamic, cosmopolitan hub. The casino was seen as a potential solution to revitalize the tourism industry.

Singapore policymakers proposed a new tourism concept: the integrated resort (IR). An IR would include attractions like convention facilities, restaurants, shops, theaters and tourist destinations such as theme parks and aquariums. The gaming component was framed as a limited but essential part, making the IR financially feasible without government grants or subsidies.

This proposal sparked extensive public discussions and consultations, generating significant media coverage locally and internationally. Public opinion was evenly split, with strong support and opposition.

Spokespersons for Buddhism, Christianity, Hinduism and Islam voiced their concerns. Several groups, including Muslim and Christian communities and social workers, openly disapproved of the casinos. They worried about the negative social impacts of gambling, such as money laundering, loan sharks and organized crime. They argued that the introduction of casinos in other jurisdictions led to higher incidences of problem gambling, bankruptcies, divorce rates, domestic violence and family abandonment.

Supporters cited the economic benefits of having casinos in Singapore. They saw casinos as a way to boost tourism and job creation at a time when Singapore was losing its share of the tourism market. The presence of a casino could introduce a range of facilities and attractions that would otherwise be unprofitable or not economically viable, elevating Singapore's tourism industry. The IR concept allowed for the cross-subsidy of these facilities and attractions within the entire IR development.

This photo shows Helix Bridge leading to Marina Bay Sands and ArtScience Museum in Singapore City. gettyimagesbank

After some deliberation, Prime Minister Lee announced the decision to lift Singapore's 40-year-old ban on gambling, allowing the operation of not one but two new casinos. A highly organized process of competitive tendering ensued, culminating in the selection of developers and operators in 2006. Cabinet approval was granted to Las Vegas Sands for the Marina Bay site and Genting International and Star Cruises, both part of Malaysia's Genting Group, for the Sentosa site. Both IRs were completed and opened in 2010.

Even before the IRs were up and running, Singaporean policymakers had already acknowledged their potential negative consequences and promised to contain them through different safeguards.

In 2006, the government passed the Casino Control Act, licensing the two companies to build IRs with casinos. The Act also established the Casino Regulatory Authority (CRA) and the National Council of Problem Gambling (NCPG). The CRA and NCPG work together to limit the social impact of casino gambling through progressively tightened safeguards.

The CRA was tasked with regulating the casinos to ensure they remained free from criminal influence or exploitation. Since the IRs opened in 2010, the casino operators have been reprimanded and fined multiple times by the CRA for regulatory breaches.

Early restrictions on the casinos included a limit on floor space (15,000 square meters) and the number of gaming machines (2,500), with the casino floor space not exceeding 3 percent of the overall IR development.

An aerial view of Resorts World Sentosa on the island of Sentosa / gettyimagesbank

Only individuals 21 years old and above are allowed to enter casino premises. Citizens and permanent residents must pay a minimum levy of 100 Singapore dollars ($73) per entry for 24 hours or 2,000 Singapore dollars for unlimited access to one casino for 12 months (increased to 150 Singapore dollars per entry or 3,000 Singapore dollars per year in April 2019). This levy deters spontaneous visits from those unable or unprepared to pay.

The Casino Control Act provides for three types of casino exclusions. A person may volunteer for self-exclusion, while family members can apply for exclusion if a relative poses a threat to the family. Third-party exclusions automatically apply to individuals receiving government financial aid, living in rental flats with over six months of public housing arrears, receiving government legal aid or those who are undischarged bankrupts.

In June 2013, the government introduced the Casino Visit Limit, an additional safeguard that caps the number of times a registered individual may visit the casinos each month. This measure is administered similarly to the exclusion provisions.

Casino operators in Singapore are prohibited from accepting credit cards and post-dated checks from local residents and extending credit to them, except for premium players who must deposit at least $100,000 upfront. Advertising casinos in local mass media is also strictly prohibited.

To address gambling addiction, the policymakers introduced extensive education and outreach programs. Thirty-six Family Service Centres (FSCs) and the five Community Development Councils throughout the country were tasked with providing information on gambling addiction. Staff at these centers were trained to identify compulsive gambling symptoms and offer basic counseling, advice and referrals to specialized services. Some FSCs also provide legal and financial advisory services to problem gamblers and their families.

Tourists pose for photos at Merlion Park in Singapore, May 23. Singapore's Ministry of Trade and Industry (MTI) announced on May 23 that the country's gross domestic product (GDP) growth forecast for 2024 has been maintained at 1 to 3 percent while the economy grew by 2.7 percent year-on-year in the first quarter. EPA-Yonhap

In 2008, the National Addictions Management Service (NAMS) was established at the Institute of Mental Health to treat addiction. NAMS offers treatment and counseling for gambling addicts, including individual, group and family therapy, public education talks, training for health care and social service professionals and a 24-hour helpline for gamblers and their families.

To combat casino-related crime, the Casino Crime Investigation Branch was established. The police launched an offensive against loan sharks throughout 2009, prior to the IRs opening, and were given enhanced capabilities and regulatory flexibility to tackle unlicensed money-lenders.

Singapore's two IRs offer more than just casinos. These destinations feature world-class hotels with over 6,000 rooms, high-end retail, top-tier dining and diverse entertainment venues. The development of such multifaceted attractions has significantly broadened Singapore's appeal as a tourism hub on the global stage, ensuring that they cater to a wide range of preferences and desires.

Marina Bay Sands Casino is crowded with visitors in this April 2015 photo. Newsis

Tourism receipts grew by 18 percent in 2011 compared to 2010, reaching a then-record high of 22.3 billion Singapore dollars, while visitor arrivals increased by 14 percent to 13.2 million. The Ministry of Trade and Industry reported in November 2012 that "the IRs directly hire more than 22,000 employees, and have spun off more than 40,000 jobs throughout the economy." The economic impact of the two IRs has been estimated to have "contributed 1 percent to 2 percent" of annual gross domestic product, government sources said in 2019.

The IRs have played a crucial role in establishing Singapore as the world's leading meetings, incentives, conferences and exhibitions destination by strengthening the island's facilities and infrastructure for meetings, incentives, conferences and exhibitions. A large number of the leading business events in Singapore are held within their venues.

In April 2019, the Singapore government approved the further expansion of both IRs in exchange for a combined new investment of nearly $7 billion in non-gaming facilities and tourist attractions. This deal allows the casinos to maintain their duopoly until 2030.

The Singapore government has clearly been able to capitalize on the benefits and advantages that a casino can bring to the economy to the fullest effect while minimizing the clear, negative and dangerous effects by preparing for and ring-fencing the ills of the casino early and effectively to protect citizens.

Christopher Khoo is a managing director of MasterConsult Services and a veteran in Singapore's consulting, research and tourism industry. Previously, Khoo held various positions at the Singapore Tourism Board and also worked as a research director at PwC.