Like many other countries where the government does not approve all areas of the gambling industry, the state lottery is legal in Vietnam. In the country, there are specific gambling zones that offer services mainly only to foreign guests.
Insight into main Vietnam’s gambling laws
Organized lottery games have been held in Vietnam since 1936 and officially since 1946. Trading printing company Binh Duong LTP was founded in 1979 and merged with Song Be Binh Duong Lottery in 2000. On December 5, 2011, the Minister of Finance established the Vietnam Lottery Company (Vietlott). In January, a subsidiary of Malaysian firm Berjaya Corp Bhd (Bcorp) received an 18-year investment license to operate Vietlott.
As far as is known, in the country, in addition to the state, there are three other lotteries – Southern Lottery that oversees Ben Tre, Vung Tau, and Bac Lieu, Northern Lottery covering Quang Ninh, and Central Vietnam Lottery supervising the Dak Lak and Quang Nam lotteries.
There are many casinos operating in the country, which were often opened thanks to investments by companies from other countries. Initially, local residents were not allowed in casinos, but later it was decided that for a certain period they would be allowed access to gambling establishments (located on the Phu Quoc, Quang Ninh, and Van Don islands), but only on the condition that the monthly income of the visitor is not less than 10 million Vietnamese dongs (almost $500). To ensure greater security, there is a limit on the maximum and minimum bets (from a thousand to several million dongs).
Interesting
The entrance to the casino is allowed for those who have no criminal record and only if they have already reached 21 years of age. Besides, the player must obtain permission from his/her family to visit Vietnam’s gambling establishment.
In 2018, authorities adopted a law that made the activity of sporting bets legal. It is also known that the country allows betting on international events in football and horse racing. In this case, bookmakers must be located 500 meters away from social institutions, such as schools and kindergartens.
Frequent customers of Vietnamese casinos are residents of China, where gambling, with the exception of Macau, is also prohibited for local visitors. Junket tours are attractive for the Chinese, and the Belt and Road Initiative has made it much easier for them to access the gambling market in Vietnam. Due to the large flow of tourists, the country’s infrastructure has been also enriched.
At the moment, a large Asian gambling operator Suncity Group Holdings Ltd, a company from Hong Kong, operates in Vietnam. Gambling establishments that are operated by Corona Resort and Casino providing services on Phu Quoc Island. It is known that $4 billion was invested in the construction of this resort. The island district of Van Don in Quang Ninh province is expected to turn into a sea-based economic zone featuring an entertainment complex with gambling establishments for promotion of the high-class tourism.
The current state of the local market
Some time ago, the Ministry of Finance of the state of Vietnam came up with a proposal to reduce the requirements for casino investors. According to the legislation, they must allocate at least $2 billion for the creation of integrated resorts with separate casino zones. In this case, half of the indicated amount must be paid before the final issuance of the license.
All this indicates that the government is afraid that operators will leave the local market due to too strict requirements.
At the same time, indulgences of the authorities have been noted in respect to the local population. In 2018, a pilot law was issued, and it stated that locals would be allowed to play in casinos under certain conditions (there were indicated above). Novomatic AG became the premium provider of gaming technology for the Corona Resort and Casino, the location allowed for local citizens. Its vice president noted that Vietnam is an important area for the company.
It is worth noting that according to the indicators of 2019, the Vietnamese economy showed the fastest growth rates in comparison with other countries of Southeast Asia. In the first six months of 2019, external investors contributed almost $17 billion to the country’s budget, which is almost 70% higher than in the same period of 2018.
The presence of such a large company as Suncity Group in the gambling sector of the state shows that the Vietnamese gambling market has prospects. Suncity Group Holdings Limited showed great hopes for the market when it confirmed information about the construction of the integrated resort. Its opening was scheduled for the first quarter of 2020. However, in March of 2020, the company delayed this event until 2021.
Donaco International announced an increase in profits in 2019. In comparison with 2018, the operator’s revenue grew by 42% – to $24.25 million, while corporate expenses decreased by 19%. These facts testify to the interest of operators in the local market and their determination to stay here.
At the same time, no one denies the existence of a shadow market, which takes away part of the profit. The fight against illegal operators began immediately after legalization. The most revealing case, testifying to the work of offshore companies, was the disclosure in 2018 of the activities of two officials, under whose cover the turnover of shadow gambling companies reached $420 million. In the fall of 2019, an illegal betting network offering online football betting was also discovered. The total income of the illegal bookmaker, recorded by law enforcement officers, was $130 million.
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