Bill in the works since 1999
If Vietnam approves locals gaming in the country’s casinos, it could take a toll on gaming halls across the border in Cambodia, which collected $34.7 million in taxes from its 63 licensed casinos last year.
“We’ve been worried about this law for a long time and we hope that the Vietnam government won’t let its citizens gamble at home, as this would dramatically affect our business,” said Lim Kem Seng, chairman of the Lucky89 Group, which operates two casinos on the Vietnam-Cambodia border.
“The vast majority of our players and revenue come from Vietnam, and if they continue to stop coming, the sector will face a lot of challenges to remain profitable,” he told the Phnom Penh Post. “It’s already not easy for Cambodian casinos here.”
According to Vietnamese media, a locals gaming market could reap about US$800 million in annual revenues. The Macau Business Daily reports that details of the bill has been kept under wraps, but quoted Oliver Massmann, general director of law firm Duane Morris Vietnam, who said, “Although I’m not 100 percent sure, it is likely that Vietnamese may enter casinos, but with specific conditions.”
Ros Phearun, deputy director of the financial industry department of the country’s Ministry of Economy and Finance, is unconcerned about the impact on Cambodia. “Yes, the law would likely make it difficult for Cambodian border casinos,” he said. “But as a whole it wouldn’t change the sector because gambling is a worldwide industry.”
He added that the casinos in Cambodian border towns like Bavet are generally smaller operations. “Bavet does not cater to the VIP market, and mostly attracts Vietnamese that come to play with maybe 10,000 Dong (US$0.45),” he said.
The legislation has been in the pipeline in several forms for seven years, reported the Asia Gaming Brief. “We hope that this will be the last draft, already we have seen a lot of revisions before its submission in June,” said Nguyen Huy Dat, deputy director of the Ministry of Finance’s Lottery and Gambling Division.
According to statistics from the Ministry of Finance, Vietnam has eight casinos, which are open only to holders of international passports. It recently approved two large-scale casino projects—in Van Don, in the northern province of Quang Ninh, and Phu Quoc, in the southern province of Kien Giang. Vietnam also has 50 licensed electronic gaming service providers.
Results of the pending casino bill could be disclosed as early as July 1. According to the Vietnam Investment Review, “hotels and resorts are all eagerly awaiting the government’s decree that will permit Vietnamese people aged 21 and over to gamble.”
