Decree allows casino access for locals
Decree allows casino access for locals
The first-ever permission for Vietnamese citizens to gamble in the country-based casinos will now open the door widely for foreign investment to rush into this lucrative industry.
The government finally issued its Decree 03/2017/ND-CP last Friday to regulate casino business activities for Vietnamese residents, following almost 10 years reviewing and drafting regulations regarding such business.
The most salient point of the decree, which is scheduled to take effective on March 15, 2017, and has long been yearned by existing casino businesses and potential investors, is that for the first time, Vietnamese citizens will be allowed to place their bets in casinos for a trial period of three years, from the date the first casino operator successfully obtains their license for Vietnamese gambles.
The trial casino entry opens for Vietnamese who must be at least 21 years old, have a monthly regular income of minimum VND10 million ($454.5), and are capable of civil actions.
Previously, casino entry was strictly limited to foreigners and overseas Vietnamese (Viet Kieu).
The decree also loosens conditions for businesses to get investment licenses for casino operations, in terms of investment capital.
Accordingly, the total investment capital required for a casino project would be trimmed from $4 billion to $2 billion, given disbursed capital must reach at least $1 billion.
Drafting of the decree began in 2009, subjecting to enormous controversy over whether or not the country should allow Vietnamese citizens to plays at casinos.
Michael Kelly, executive chairman of Ho Tram Project Company Limited, previously said that “Casino’s are our second biggest revenue maker after the hotel and resort businesses. Owning the largest casino venue in Vietnam, Ho Tram is waiting for the adoption of the decree to improve our casino business performance further.”
Ho Tram Project Company Limited operates the $4.2 billion Ho Tram Strip resort and casino complex in the southern province of Ba Ria-Vung Tau.
In a recent interview, Ho Kwon Ping, executive chairman of Banyan Tree Holdings, told VIR that “We have applied for a casino license. The procedures are reasonable and we look forward to a favourable decision soon, since we have already invested so much in tourism, and other applicants are simply promising to invest if they get a license.”
Pinning high hopes on the potential of the market, and the possibilities of easing the regulations by the local government, many investors have poured investment in the business.
The $4 billion South Hoi An integrated casino resort kicked off in April 2016. Invested by a joint venture between VinaCapital, Macau-based SunCity Group, and Hong Kong-based Chow Tai Fook, it is the second largest casino in Vietnam after the $4.2 billion Ho Tram Strip resort and casino complex.
Many other potential foreign firms, including Las Vegas Sands from the US, have expressed their interest in opening a casino in Vietnam.
According to the latest Vietnam-Casino-Gambling-Market Report by Duane Morris Vietnam LLC, Vietnam licensed seven businesses to run casinos.
The government has also recently allowed the development of two large-scale casino projects in Van Don in the northeastern province of Quang Ninh, and the southern province of Kien Giang’s Phu Quoc island.
The regulation that bans locals from playing at casinos has prompted them to gamble overseas, causing an estimated loss of $800 million annually in the much-needed tax revenue for the country.
A recent study by the Institute of Regional Sustainable Development (IRSD) showed that if foreign investment in casino increases by $3 billion, Vietnam’s GDP will expand by 0.58 per cent.
