Royal International Corp. (RIC), which owns the largest casino in Quang Ninh Province, Vietnam, expects to double its profits in 2021, despite two straight years of losses.
Asia Gaming Brief cited documents distributed at an annual shareholders’ meeting that said the company looks to revenues of $10.3 million, of which $5.8 million will come from gaming and the rest from hotel operations.
The Royal Ha Long Casino is targeting foreigners working in Vietnam who have been unable to return home due to Covid-19 travel restrictions. The firm plans to cut costs and “adopt a flexible pricing strategy” to attract Vietnamese customers once the pandemic is over.
During the first quarter, RIC recorded revenues of $1.2 million for a loss of $1.1 million. In 2020, the company posted a $4.3 million loss and attributed it to increased competition from casinos in border nations such as Cambodia, Philippines and Myanmar.
The Royal Ha Long is a foreigners-only casino, unlike the Corona Resort and Casino in Phu Quoc and Van Don in Quang Ninh, both of which are part of a three-year pilot program to test locals casinos.
The government however has not indicated it will expand this pilot program to other casinos.
“The government’s main concern would be not to expose the local population to potential social risks from gambling and so I do not think there will be a significant shift in government policy in the near term,” said Saponti Baroowa, associate director of business intelligence at Dezan Shira & Associates in Ho Chi Minh City in an interview with AGB.
“There are these pilot programs, but that gives us the view that it’s something the government is experimenting with, but I think it’s highly unlikely to be opened up to domestic big spenders any time soon.”
