Vinh Phuc bets on government gaming law

Phung Quang Hung, Chairman of Vinh Phuc Provincial People’s Committee, in a recent meeting about the development plan for Hanoi and surrounding provinces, said several investors from the US and South Korea had shown interest in Tam Dao Mountain’s Dai Lai Lake as the proposed site for horseracing and table gaming.

Hung did not disclose the names of the prospective investors, but said that delays on establishing a clear legal structure for casinos was the last barrier preventing capital injections into the area.

The government has been drafting decrees on casinos and sports-betting since 2008, but has not yet promulgated one. Last month, they finally submitted a draft plan for approval and authorities are saying it could be put into law early next year.

While no official announcement has been made about the investors, there have been substantiated rumours since 2007 that Korea’s G.O. Max I&D is planning a $570 million horsetrack that would include seats and services for 15,000-17,000 people, as well as a golf course and luxury villas.

Up to now the firm has not yet received an investment certificate because there is no legal structure by which to do so.

A source familiar with the Korean investor and a middle-man between them and Vinh Phuc authorities said G.O. Max is eager to get the project started, despite a five year delay.

“We are thrilled to hear that the National Assembly is finally seriously considering the proposed law on gambling and sports-betting and that it could be passed early next year,” said VIR’s source who added that the company was already working to arrange financing with potential partners.