A recent overhaul of Vietnam’s gambling policy will bring residents of the country one step closer to being able to gamble in casinos.
The Lottery and Gambling division of Vietnam’s ministry of finance has announced that the long-awaited draft decree to alter the country’s legislation had been submitted to the country’s authorities for review.
Tough penalties for law-breakers
Under current laws, online foreigners and Vietnamese citizens living overseas, called Viet Kieu. Vietnamese people resident in Vietnam who are interested in gambling must cross the border into Cambodia or Laos, where gambling is legal. The only gambling opportunity at present is through lotteries.
Those caught gambling illegally can face a fine, non-custodial reform or even a prison sentence.
Stumbling blocks impede draft legislation
The draft decree began life in 2009, when the government set out to attract investors through the gambling sector. It experienced several delays in the meantime, causing investors to baulk at the repeated stalling.
It is estimated that the Vietnamese government has lost $800 million annually in tax revenues as a result of the delays.
Nguyen Huy Dat, deputy director of the Lottery and Gambling division, admitted that the draft had undergone numerous revisions before its submission and expressed hopes that it would be the last draft.
The division said it had taken into consideration some operator concerns, including lowering the totally investment capital of a casino project to $2 billion, instead of $4 billion, on condition that the disbursed capital reaches $1 billion.
Investors, operators positive about legal changes
Investors and operators are understandably eager to see the final product. The rumblings of an economic slowdown in nearby China has forced operators to grapple with shrinking gaming revenues.
Some eight casinos have been licensed to operate in Vietnam since 2014, however the current legal situation means locals cannot gamble there, forcing operators to rely on foreign players and Vietnamese living outside the country.
Executive chairman of Ho Tram Project Company Limited Michael Kelly said,
Owning the largest casino venue in Vietnam, Ho Tram is waiting for the adoption of the decree to improve our casino business performance further.
A recent study by the Institute of Regional Sustainable Development shows that the casino industry has the potential to draw some $3 billion in additional direct foreign investment, translating into a 0.58% increase in Vietnam’s GDP.
