Electronic gaming machine manufacturers, suppliers and testing laboratories seeking to operate in Vietnam must first be licensed in Macau, according to a new government order.
“In Vietnam, the government believe that Macau is the hub of the gaming industry in Asia,” said Vietnam International Law Firm Chairman Ngo Thanh Tung in a note to clients cited by industry media outlet GamblingCompliance.
Macau’s Gaming Inspection and Coordination Bureau lists 23 manufacturers, four EGM agents and seven testing laboratories, all of which would gain automatic approval to enter the Vietnamese market, according to the order, which came in the form of a clarification of Ministry of Finance guidance issued last year on the regulation of machine gaming.
The order arose in the wake of a controversial court decision last year awarding a gambler the equivalent of US$55 million that mistakenly registered as the prize on a malfunctioning slot machine in a club at the Sheraton Saigon Hotel. The case ended when the gambler settled after the club appealed, leaving the industry in limbo on the ramifications of the initial court judgment. The order attempts to address this with provisions to govern dispute resolution prior to litigation.
Other provisions include a fee cap of 4 percent of gross gaming revenue for management companies, a minimum fixed payout to players of 90 percent and detailed technical requirements. There are also rules covering surveillance, component destruction and replacement, recordkeeping, licensing, auditing and financial statement reporting.
The order did not address the government’s prohibition on Vietnamese nationals engaging in casino-style gambling, which is considered a major obstacle to any large-scale foreign investment in resort development in the country.
“It is noteworthy that the Vietnamese government maintains its position that Vietnamese are excluded from entering establishments to play on casino gaming machines,” VILAF said.
