Locals gaming considered a plus
Vietnam has considered slashing its minimum investment for casino resorts from $4 billion to $2 billion. It will need to go lower and throw in more incentives to draw major international casino operators, according to Union Gaming Securities Asia analyst Grant Govertsen.
According to GGRAsia, Govertsen said Union Gaming does not expect “much (if any) interest on the part of the major gaming companies … unless two or three important conditions are met: 1) locals gaming, 2) licenses granted in the major cities of Ho Chi Minh and Hanoi, or 3) the minimum investment requirement is lowered substantially to a number less than US$1 billion.
“Depending on whether or not the government is willing to settle for less, and in the context of the current China macro, it is hard to imagine a scenario where there will be significant international interest on the part of the major players … unless an integrated resort license (with locals allowed) is available for downtown Hanoi or Ho Chi Minh City,” said Govertsen.
Vietnam’s Ministry of Finance reportedly completed a draft decree last year aiming to grow the country’s gaming industry. Augustine Ha Ton Vinh, an advisor to the government on the matter, said the new rules, which could be released in the first half of 2016, may include regulations for locals, such as a minimum gambling age and a minimum monthly income requirement.
“Assuming that locals are approved at up to four integrated resorts, the locations would be critical,” added Govertsen. “Current thinking includes a north, central, south and southwest (Phu Quoc island) strategy.”
If locals are not permitted to play, developers would likely be looking to invest “significantly lower than US$1 billion,” Govertsen added.
