Critics of a proposal by Vietnam’s Finance Ministry to legalize sports betting say the plan will fail to entice bettors away from the country’s massive black market because the maximum bet size it sets is too low.
“No one will bet within the proposed limit of VND1 million (US$45) a day. Or they will have others to bet for them,” said Nguyen Hoang Hai, deputy chair of the Vietnam Association of Financial Investors. “Betting should be either banned or legalized. But it should not be half-allowed like this.”
The ministry’s plan, scheduled for submission to the government this month, would regulate wagering on certain international football matches to be decided by the Ministry of Culture, Sports and Tourism. It also would allow in-play betting. Participation would be restricted to people over 18.
“The regulation aims at keeping a careful eye on gamblers and step-by-step development to avoid regrettable consequences,” a ministry official said.
But there are plenty of observers who say it won’t work, including political insiders.
“A drinking table can cost several million dong. People will still bet illegally on international networks due to the low betting limit,” said Nguyen Van Hien, a former chairman of the National Assembly’s Legal Committee.
Nguyen Hanh Phuc, the assembly’s general secretary, said only poor people would gamble under the proposed rule. “Rich people and big gamblers will still bet illegally.”
The government also is considering a dramatic expansion of the casino industry in hopes of transforming the country into a major regional tourist destination and reaping the economic benefits that are likely to result. Experts agree the country would be a very attractive gaming destination, but unless an existing ban on domestic participation is removed, it’s believed the market will not realize its full potential.
This is not, however, deterring interest from several sizable investment groups. One, led by Steelman Partners, Cantor Fitzgerald and Weidner Resorts proposed to develop a mixed-use commercial and office complex, possibly with a resort casino, on the Saigon River in the heart of Ho Chi Minh City, but the local government recently rejected a zoning change the group sought to exceed the area’s 50-story height limit.
Two leading domestic companies in property development and tourism also have submitted proposals: Sun Group, which has asked for permission to invest in a casino in Van Don, Quang Ninh Province; and Vingroup, which is looking to build on Phu Quoc Island.
Banyan Tree Holdings and a property developer known as Hung Thinh Real Estate Investment also have proposals.
