The former tour guide was earlier sentenced to 26 months’ jail for duping authorities into granting him permanent residency in Singapore.
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Muhammad Iskandah Suhaimi had locked himself and the two-year-old boy inside a Sembawang flat for more than 17 hours until police broke into the house.
The two operators will have to adhere to strict conditions, and only offer existing products, the Ministry of Home Affairs says.
These legal gambling options provide easier access to gambling, which “could pose a real danger”, experts told Channel NewsAsia.
Among safeguards, only those aged 21 and above will be allowed to open player accounts. Operators have to ensure punters set daily limits on transfers and betting.
Prime Minister Lee Hsien Loong also says it is important that Singapore “must never be seen to be playing multiple sides" in a regional dispute, adding that Singapore must have a stand and stick to it.