Vietnam gets ready to create "new gambling industry"

The so called Casino Decree No. 03-2017, dated Jan. 16, 2017 was signed by the Prime Minister and released four days later on Jan. 20 to the public, allowing Vietnamese to gamble legally inside their country.

The ruling Vietnam Communist Party’s Politburo announced back in 2013 that it supported a new Special Economic Zone and integrated resort on Van Don Island, situated in the UNESCO World Heritage Ha Long Bay. Along with its support, the Politburo commissioned a study to assess the socio-economic impacts of allowing local Vietnamese to enter casinos.

“After three years of soul searching and policy debates, the ruling party’s leaders believe now is the time to move ahead, creating a new gaming industry. In mid-September 2016, the Party made it clear that it supports the creation of a new gaming industry and will allow local Vietnamese to enter designated casinos on a trial basis,” Gaming industry observer and professor Augustine Ha Ton Vinh explains.

Following are some key items of Vietnam's new Casino Decree:

1. Local Vietnamese will be allowed, on a trial basis, to visit designated integrated resorts and casinos which meet requirements under this Decree and are approved by competent authorities.

2. The period of the trial basis is 3 years from the first day opening of the authorized integrated resorts. After three years, the government will review the impact and outcome of the trial period and will decide whether to allow local Vietnamese to continue to play.

3. The decree made it clear local Vietnamese, 21 years and above, making around US$500 per month in salary, and without any objection from family members, i.e. spouses, parents, children, will be allowed to enter casinos. In addition, people with any criminal record, currently involved in criminal proceedings, or under house arrest, will not be allowed to enter casinos. The players can opt to self-exclude themselves from any casino permanently or for any period of time.

4. The casino operators have to issue local Vietnamese players with player’s cards for monitoring purposes. The information on the cards will, at least, include photos, names, government ID or passport, date and time of entrance and exits, betting amounts, payouts received, etc.

5. The government authorities can anytime ask operators to provide information on the players for monitoring purposes or during any inspection periods. The operators will need to work with the government on the final review at the end of the trial period.

6. The local players have to pay an entry fee of about $45 for a 24hr period or $1,100 for a monthly unlimited pass.

7. Local Vietnamese currency (VND) will be used for all transactions related to local Vietnamese in the casinos. VND will be exchanged for casino chips for table plays and payouts. Chips will be cashed out in VND.

8. Foreign passport holders will be able to exchange foreign currencies for gaming chips and will be paid in foreign currencies. The State Bank of Vietnam will issue the gaming operators foreign exchange licenses for the collection and payment of currencies for the period of the gaming licenses not to exceed 20 years.

9. The entrance fees collected at the casinos will be used for their respective local social welfare and community programs, under the guidance of the Ministry of Finance.

10. The total investment for an integrated resort is US$2 billion. A minimum $1 billion has to be disbursed before a gaming license is granted.

11. The gaming license will be for a period of 20 years with a one-time non-renewable extension of 10 years. Only two types of gaming modes are allowed: i.e. table games and electronic gaming machines.

12. For each US$10 million in disbursed or additional investment, casino investors can operate one gaming table and 10 electronic gaming or slot machines. For each and every review of the license or increase in investment, a minimum of $100 million in investment is required.

13. To avoid any appearance of preferential treatment and to be in line with the regulatory procedures, the decree has removed any reference to the Van Don and Phu Quoc integrated resorts as the two designated locations for local Vietnamese. These locations were authorized in September 2016 by the ruling Party. This final decree, however, was written in such a way that the “competent authorities” have the final say in keeping Van Don and Phu Quoc as the only two approved for locals to play or to allow other integrated resorts, e.g. Ho Tram to join the crowd. The competent authorities here can be understood as the ruling Party’s Politburo. Normally, the decree will say “competent government authorities” which means decision rests with the Prime Minister and / or his Cabinet. The Ho Tram project’s fate falls under this unclear scenario.

14. The soothsayers will say Ho Tram is ready to accept local Vietnamese as early as March 15, the date the decree takes effect. The pessimistic people and those who are knowledgeable about the government, however, believe “It ain't over till the fat lady sings.”