Casino gold rush after new gambling rules

Potential profits from the gambling industry are too lucrative to overlook Photo: Le Toan

One of the first prerequisites of the regulation is that all gamblers would have to be at least 21 years of age and have a clean criminal record to be granted entry in the casino. They would also have to provide proof of a stable monthly income of at least VND10 million ($443) – a limit that would clearly ward off the average earner.

Vietnam plans to impose a Singapore-style casino entry fee for local residents, who will have to ante up VND1 million ($45.45) per day or VND25 million ($1,100) for a monthly pass. The charge is less than the daily S$100 ($70) levy Singapore imposes on its locals but will still represent a significant barrier to most Vietnamese.

However, under the new regulation, local Vietnamese will be permitted to gamble at specific casinos approved by competent authorities on a three year trial basis. After three years, the government will decide whether to continue to allow the Vietnamese to have access to casinos.

Prof. Augustine Ha Ton Vinh, investment consultant for Special Economic Zone and Casino Complex in the northern province of Quang Ninh’s Van Don told VIR through e-mail that “this is the first time the government has issued a full decree about casino gambling on par with international practices. It has contributed to this sector in Vietnam.”

He added that “Hopefully, there will be further new terms added to more adequately address casino tax revenue and the personal income tax of the player.”

Now, Vietnam, one of Asia’s most sought after but seemingly out of reach markets, plans to open its doors for local players on an experimental basis. Billionaire Lim Kok Thay’s Genting Group, Sheldon Adelson’s Las Vegas Sands, and former Adelson lieutenant William Weidner have all shown interest in Vietnam, and a successful experiment with so-called open casinos could lead to major investment by international players.

Vietnam currently has seven casinos operating in some of its most popular tourists destinations. They are The Grand Ho Tram Strip in the southern province of Ba Ria-Vung Tau, Aristo International Hotel in the northern province of Lao Cai, Phoenix International Club operated by Silver Heritage Group in the northern province of Bac Ninh, Royal International Hotel Halong in Quang Ninh, Do Son Resort Hotel in the northern port city of Haiphong, Hai Ninh Loi Lai Casino in Quang Ninh’s Mong Cai, and Hong Van Casino in Quang Ninh.

Among those, Royal International Hotel Halong reported in 2014 that its net losses had reached VND153 billion ($6.7 million). Meanwhile, Donaco International, the investor of Aristo International Hotel also reported the lower profit from its Vietnam casino than in others in the region.

It was expected that the situation, however, could change for the better once locals are permitted to enter casinos.