Vietnam extends casino trial period for local patrons until year-end
The trial period allowing Vietnamese citizens to gamble at select casinos has been extended until December 31st, 2024, with the Phu Quoc casino project reporting mixed financial outcomes during the pilot phase.
According to a report by Vietnamnet, the trial allowing Vietnamese citizens to gamble at casinos has so far only been implemented at the Phu Quoc casino, which has been in operation since January 2019. Between 2019 and 2023, the Phu Quoc casino generated VND6.4 trillion ($258 million) in revenue, contributing nearly VND3.69 trillion ($148 million) to the state budget.
Despite improved business results in 2023 compared to 2022, the Phu Quoc casino project still reported a cumulative loss of VND3.72 trillion ($150 million) due to high initial depreciation and interest costs.
From 2019 to the end of 2023, the casino attracted 295,943 Vietnamese citizens (62 percent of total players) and 179,507 foreign nationals (38 percent of total players). The age of Vietnamese players ranged from 21 to 97, with the majority being 39 years old.
Currently, a draft decree amending the regulations for the casino business has been submitted by the Ministry of Finance to the Government. The decree proposes extending the trial period for the first casino, allowing Vietnamese citizens to gamble until the end of 2024. Other casinos will have a three-year trial period starting from the date they receive their Certificate of Eligibility.
The Ministry of Finance, working with the Ministry of Public Security, the Ministry of Planning and Investment, the Ministry of Culture, Sports and Tourism, the State Bank of Vietnam, and local People’s Committees where casinos operate, will conduct a thorough review and assessment. Based on these evaluations, authorities will decide whether to end or extend the trial period. If the Government does not issue a resolution by the end of the trial, casinos will temporarily suspend allowing Vietnamese citizens to gamble.
The Ministry of Finance stresses that clearly defining the trial period and evaluation process is essential for assessing the impact of allowing Vietnamese citizens to play at casinos. This clarity also helps the involved enterprises manage their operations more effectively and plan their strategies.
In May 2024, the Politburo agreed to extend the trial period for the Phu Quoc casino project until the end of the year. The Van Don casino project will have a three-year trial period starting from when it begins operations.
However, as reported previously by AGB, Vietnam’s plans to develop a thriving integrated resort (IR) sector have encountered hurdles, with the Phu Quoc pilot project and the Van Don plans facing notable challenges.
By Viviana Chan – Asia Gaming Brief – August 26, 2024