The landscape of gambling in Vietnam has undergone significant changes, reflecting the government’s evolving stance on this industry. Here’s an overview of the gambling scene in Vietnam:
Historical Context: The Gambling War
Gambling has been traditionally illegal for Vietnamese citizens, with the state-run lottery being the only exception. The government cracked down on illegal gambling rings, imposing strict penalties, particularly for those involved in organized crime or lending sharks. The battle against illegal gambling extended to online platforms, with significant efforts to shut down operations.
Shift in Policies: Opening to Legalized Gambling
Casino Decree No. 03/2017/ND-CP:
In a notable shift, the Vietnamese government issued Casino Decree No. 03/2017/ND-CP on January 20, 2017. This decree marked a significant change by allowing local Vietnamese citizens to gamble on a trial basis at approved casinos. The move was aimed at curbing illegal gambling activities and retaining tax revenue within the country.
Decree No. 06/2017/ND-CP:
In addition to the Casino Decree, the government issued Decree No. 06/2017/ND-CP, which legalized international betting on soccer, horse racing, and greyhound racing. The objective was to regulate and capture tax revenue from these forms of betting.
Challenges and Illegal Gambling Operations:
Despite the efforts to regulate and legalize gambling, challenges persisted. Reports surfaced about the existence of illegal online sports betting rings, resulting in stringent legal actions against those involved. The government continued its crackdown on unauthorized gambling activities, emphasizing its commitment to eradicating illegal operations.
Casino Legislation and Foreign Investment:
Minimum Investment Requirements:
To attract foreign investors, the government set rigorous conditions under Casino Decree No. 03/2017/ND-CP. Investors seeking a Certificate of Registration of Investment in a Casino were required to meet criteria such as a minimum investment capital of USD 2 billion. The decree outlined specific conditions, including the incorporation of hotels, tourism, commercial, and entertainment areas within the casino projects.
Phu Quoc Casino:
The Ministry of Finance initiated consultations on the appraisal results for the Phu Quoc casino, signaling the potential for the country’s largest casino business complex. The casino, part of an ecotourism complex, received a 20-year business license and aimed to contribute significantly to tax revenues.
Gambling Opportunities and Restraints:
Two Types of Gaming Machines:
The Casino Decree differentiated between two types of gaming machines:
- Prize-winning Business: Gaming machines with prizing programs and special equipment for casino games.
- Prizes Not Convertible: Machines where players receive prizes that cannot be converted into cash or kind.
Phu Quoc Casino Business Conditions:
The Phu Quoc casino had to meet specific conditions, including the isolation of gaming tables and award-winning electronic gaming machines from other recreational areas within the complex. The Ministry of Finance confirmed that the casino met the required conditions for operation.
Outlook: Opportunities and Challenges:
The government’s shift toward legalized gambling, including the allowance for local Vietnamese citizens to participate in approved casinos, opens up opportunities for investors and contributes to tax revenues. However, challenges persist, requiring ongoing efforts to combat illegal gambling and ensure the responsible operation of licensed casinos.
Conclusion:
Vietnam’s journey in navigating the gambling landscape reflects a dynamic approach, combining regulatory measures, foreign investment attraction, and a commitment to addressing illegal activities. As the industry continues to evolve, the government’s policies and the actions of investors will shape the future of gambling in Vietnam.
You can read more about casino projects in Vietnam in this blog.
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