Regulatory Authority in Singapore to Introduce New Policies for In-Game Goods Exchange Market
The Singaporean Gambling Regulatory Authority (GRA) has initiated a public consultation on updates to the Remote Games of Chance (RGOC) licence framework, which will remain open until the 20th of August. One of the key proposed changes is the allowance for Type 2 RGOC licensees to operate in-game marketplaces, where players can legally trade prizes such as stickers, graffiti, weapons, and skins for cash or equivalent value.
Current regulations prevent these licensees from providing services that convert prizes readily into money or money equivalents, except when the value is used strictly for in-game transactions within the same or related games. However, a proposed amendment to Paragraph 3(b)(iv) would authorise Type 2 RGOC operators to establish in-game marketplaces where prizes can be exchanged for cash or equivalent, addressing the common third-party trading that currently operates outside regulation.
Operators, if they establish in-game marketplaces for trading prizes earned through Type 2 RGOCs, will still be prohibited from repurchasing those items from players. This restriction is intended to prevent "gambling inducement" and to avoid ensuring "guaranteed monetization" of the rewards. The GRA has noted that these activities do not raise law-and-order or social concerns.
The rule change is a step towards modernizing the RGOC framework in response to evolving player behavior and digital market trends while maintaining controls to prevent gambling-related harm. The Gambling Control Act has been in force since the 1st of August 2022.
In other news, Genting Singapore has appointed Lee Shi Ruh as its new President and COO, marking a change within its senior leadership team. The legislation states that the operator does not provide a service where the prize is readily convertible into money, money equivalent or any thing of value, except for in-game transactions when playing the same game or related games.
Many players engage with in-game marketplaces for trading items via third-party platforms due to current regulations preventing Type 2 RGOC licensees from operating such services. The public is encouraged to participate in the consultation process to voice their opinions on these proposed changes before they are finalized.
- The proposed change in the RGOC framework would allow Type 2 licensees to establish legal in-game marketplaces where players can exchange prizes for cash or equivalent value, addressing the common practice of third-party trading that currently operates outside regulation.
- Despite the ban on repurchasing items from players, operators are considering establishing in-game marketplaces for trading prizes earned through Type 2 RGOCs, as this could be a response to evolving player behavior and digital market trends.
