Star City v Tan Hong Woon: Enforceability of Foreign Wagering Contracts under Singapore Civil Law Act
In Star City Pty Ltd (fka Sydney Harbour Casino Pty Ltd) v Tan Hong Woon, the Singapore Court of Appeal dismissed Star City's appeal against the High Court's decision. The court ruled that Star City could not recover unpaid loans granted to Mr. Tan for gambling, as it was a gaming contract irrecoverable under s 5 of the Civil Law Act. The court held that s 5(2) is procedural and makes actions to recover money won upon a wager unenforceable in Singapore, regardless of where the wager was concluded.
1. Case Overview
1.1 Court
Court of Appeal of the Republic of Singapore1.2 Outcome
Appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore Court of Appeal denies Star City's claim to recover gambling debts, ruling s 5(2) of the Civil Law Act bars enforcement.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Star City Pty Ltd (fka Sydney Harbour Casino Pty Ltd) | Appellant | Corporation | Appeal dismissed | Lost | Foo Maw Shen, Ng Wai Hong, Deborah Koh |
| Tan Hong Woon | Respondent | Individual | Appeal dismissed | Won | Jason Lim, Tan Kay Khai |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Justice of Appeal | Yes |
| Lai Kew Chai | Judge | No |
| Yong Pung How | Chief Justice | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Foo Maw Shen | Ang & Partners |
| Ng Wai Hong | Ang & Partners |
| Deborah Koh | Ang & Partners |
| Jason Lim | Michael Khoo & Partners |
| Tan Kay Khai | Michael Khoo & Partners |
4. Facts
- Star City operates a licensed casino in New South Wales, Australia.
- Mr. Tan was a regular patron of Star City Casino with a cheque cashing facility.
- Mr. Tan signed five house cheques for AU$50,000 each in exchange for chip purchase vouchers.
- Mr. Tan lost the entire sum of AU$250,000 at the casino.
- The five house cheques were dishonored due to insufficient funds.
- Mr. Tan made good AU$55,160, leaving AU$194,840 unpaid.
- Star City sought to recover the unpaid sum as unpaid loans.
5. Formal Citations
- Star City Pty Ltd (fka Sydney Harbour Casino Pty Ltd) v Tan Hong Woon, CA 600093/2001, [2002] SGCA 10
6. Timeline
| Date | Event |
|---|---|
| Casino Control Act 1992 of New South Wales, Australia enacted | |
| Mr. Tan granted use of Star City Casino's cheque cashing facility | |
| Mr. Tan began visiting and gambling at Star City Casino | |
| Star City provided Mr. Tan and his wife with complimentary air tickets and a hotel suite | |
| Mr. Tan signed and handed over five house cheques to Star City | |
| Mr. Tan signed and handed over five house cheques to Star City | |
| Mr. Tan stopped visiting and gambling at Star City Casino | |
| High Court decision reported at [2001] 3 SLR 206 | |
| Court of Appeal decision issued |
7. Legal Issues
- Enforceability of Foreign Wagering Contracts
- Outcome: The court held that the claim was essentially an action to recover money won upon a wager and was irrecoverable in the courts of Singapore.
- Category: Substantive
- Sub-Issues:
- Characterization of transaction as loan or wager
- Application of lex fori
- Public policy considerations
- Characterization of s 5(2) of Civil Law Act
- Outcome: The court held that s 5(2) of the Civil Law Act is a procedural section.
- Category: Procedural
- Sub-Issues:
- Substantive vs. procedural law
- Effect on right of action
- Re-characterization of Foreign Transactions
- Outcome: The court held that the courts of the forum are entitled to re-characterise a transaction according to the law and logic of the lex fori.
- Category: Procedural
- Sub-Issues:
- Application of lex fori
- Public policy considerations
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Recovery of Debt
10. Practice Areas
- Commercial Litigation
- Gaming and Wagering
- Cross-border disputes
11. Industries
- Gaming
- Hospitality
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Star City Pty Ltd v Tan Hong Woon | High Court | Yes | [2001] 3 SLR 206 | Singapore | The High Court's decision, which disallowed Star City's claim, was appealed and subsequently dismissed by the Court of Appeal. |
| Hill v William Hill (Park Lane) | House of Lords | Yes | [1949] AC 530 | United Kingdom | Overruled the prior position in Hyams v Stuart King. Cited for the principle that s 5(2) strikes down as unenforceable all contracts to pay the sum won upon a wager. |
| Hill v William Hill (Park Lane) | House of Lords | Yes | [1949] 2 All ER 452 | United Kingdom | Overruled the prior position in Hyams v Stuart King. Cited for the principle that s 5(2) strikes down as unenforceable all contracts to pay the sum won upon a wager. |
| Bubb v Yelverton | Court of Chancery | Yes | [1870] LR 9 Eq 471 | United Kingdom | Cited as an example of cases that drew a distinction between the gaming contract itself and other collateral contracts arising therefrom, which was later overruled. |
| Re Browne, ex p Martingell | King's Bench Division | Yes | [1904] 2 KB 133 | United Kingdom | Cited as an example of cases that drew a distinction between the gaming contract itself and other collateral contracts arising therefrom, which was later overruled. |
| Chapman v Franklin | High Court of Justice | Yes | [1905] 21 TLR 515 | United Kingdom | Cited as an example of cases that drew a distinction between the gaming contract itself and other collateral contracts arising therefrom, which was later overruled. |
| Hyams v Stuart King | Court of Appeal | Yes | [1908] 2 KB 696 | United Kingdom | Cited as an example of cases that drew a distinction between the gaming contract itself and other collateral contracts arising therefrom, which was later overruled. |
| Monterosso Shipping Co v International Transport Workers` Federation | Court of Appeal | Yes | [1982] 3 All ER 841 | United Kingdom | Cited for the distinction between substantive and procedural law. |
| Re Shoesmith | King's Bench Division | Yes | [1938] 2 KB 637 | United Kingdom | Cited for the definition of 'procedure'. |
| Poyser v Minors | Queen's Bench Division | Yes | [1881] 7 QBD 329 | United Kingdom | Cited for the definition of 'procedure'. |
| Quarrier v Colston | Court of Chancery | Yes | [1842] 1 Ph 147 | United Kingdom | Cited for the principle that a loan for the purpose of gambling can be recovered so long as the gaming took place in a country where they were not illegal. |
| Saxby v Fulton | Court of Appeal | Yes | [1909] 2 KB 208 | United Kingdom | Cited for the principle that a loan for the purpose of gambling can be recovered so long as the gaming took place in a country where they were not illegal. |
| Soci,t, Anonyme des Grands Establissements de Touquet Paris-Plage v Baumgart | King's Bench Division | Yes | [1927] 96 LJKB 789 | United Kingdom | Cited for the principle that an action for money lent for the purpose of gaming at those games can be brought in the French courts and that money so lent can be sued for in France either on any security given or on the loan itself instead of the security. |
| G & H Montage GmbH v Irvani | Court of Appeal | Yes | [1990] 2 All ER 225 | United Kingdom | Cited for the principle that once it has been found that foreign law characterises the action as one upon the aval, it is no longer open to the forum when applying a procedural provision to re-characterise the action as something else. |
| G & H Montage GmbH v Irvani | Court of Appeal | Yes | [1990] 1 WLR 667 | United Kingdom | Cited for the principle that once it has been found that foreign law characterises the action as one upon the aval, it is no longer open to the forum when applying a procedural provision to re-characterise the action as something else. |
| Las Vegas Hilton Corp v Khoo Teng Hock Sunny | High Court | Yes | [1997] 1 SLR 341 | Singapore | Distinguished on the basis that the court in that case was only concerned with the issue of enforceability of the loan and it was not disputed by both parties that a loan had been advanced by the casino to the gambler. |
| Loh Chee Song v Liew Yong Chian | High Court | Yes | [1998] 2 SLR 641 | Singapore | Cited for the principle that a loan and a wagering contract are distinct transactions. |
| Star Cruise Services v Overseas Union Bank | High Court | Yes | [1999] 3 SLR 412 | Singapore | Cited for the principle that the law of the forum decides what actions may be brought and what actions may not be brought. |
| Sun Cruises v Overseas Union Bank | High Court | Yes | [1999] 3 SLR 404 | Singapore | Cited as similar statements were made by the judge. |
| Lipkin Gorman v Karpnale | House of Lords | Yes | [1991] 2 AC 548 | United Kingdom | Cited for the principle that a broad view of things must be taken. |
| Lipkin Gorman v Karpnale | House of Lords | Yes | [1992] 4 All ER 512 | United Kingdom | Cited for the principle that a broad view of things must be taken. |
| Hope v Hope | Court of Appeal in Chancery | Yes | [1857] 8 De GM & G 731 | United Kingdom | Cited for the principle that the courts of one country are called upon to enforce contracts entered into in another country, the question to be considered is not merely whether the contract sought to be enforced is valid according to the laws of the country in which it was entered into, but whether it is consistent with the laws and policy of the country in which it is sought to be enforced. |
| Crockfords Club v Mehta | Queen's Bench Division | Yes | [1992] 2 All ER 748 | United Kingdom | Cited for the principle to ascertain the nature of the transaction in issue. |
| Crockfords Club v Mehta | Queen's Bench Division | Yes | [1992] 1 WLR 355 | United Kingdom | Cited for the principle to ascertain the nature of the transaction in issue. |
| CHT v Ward | Queen's Bench Division | Yes | [1965] 2 QB 63 | United Kingdom | Cited for the principle to ascertain the nature of the transaction in issue. |
| CHT v Ward | Queen's Bench Division | Yes | [1963] 3 All ER 835 | United Kingdom | Cited for the principle to ascertain the nature of the transaction in issue. |
| Law v Dearnley | King's Bench Division | Yes | [1950] 1 KB 400 | United Kingdom | Cited for the principle to ascertain the nature of the transaction in issue. |
| Law v Dearnley | King's Bench Division | Yes | [1950] 1 All ER 124 | United Kingdom | Cited for the principle to ascertain the nature of the transaction in issue. |
| Woolf v Freeman | King's Bench Division | Yes | [1937] 1 All ER 178 | United Kingdom | Cited for the principle to ascertain the nature of the transaction in issue. |
| MacDonald v Green | King's Bench Division | Yes | [1951] 1 KB 594 | United Kingdom | Cited for the principle to ascertain the nature of the transaction in issue. |
| MacDonald v Green | King's Bench Division | Yes | [1950] 2 All ER 1240 | United Kingdom | Cited for the principle to ascertain the nature of the transaction in issue. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Civil Law Act (Cap 43, 1999 Ed) s 5(1) | Singapore |
| Civil Law Act (Cap 43, 1999 Ed) s 5(2) | Singapore |
| Civil Law Act (Cap 43, 1999 Ed) s 5(6) | Singapore |
| Gaming Act 1845 (UK) s 18 | United Kingdom |
| English Gaming Act of 1892 s 1 | United Kingdom |
| Trade Union and Labour Relations Act 1974 s 18 | United Kingdom |
| Bills of Exchange Act 1882 (UK) s 72 | United Kingdom |
| Interpretation Act (Cap 1, 1999 Ed) s 9A | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Cheque Cashing Facility
- Chip Purchase Voucher
- House Cheques
- Gaming Contract
- Lex Fori
- Re-characterisation
- Wagering Contract
15.2 Keywords
- Gaming
- Wagering
- Casino
- Civil Law Act
- Singapore
- Conflict of Laws
- Enforcement
- Loan
- Debt
16. Subjects
- Conflict of Laws
- Contract Law
- Gaming Law
- Civil Procedure
17. Areas of Law
- Conflict of Laws
- Contract Law
- Gaming Law
- Private International Law
- Civil Procedure