Could create an industry boom
Vietnam is considering opening casinos to local gamblers in a bid for more foreign investment.
The country, which has considered eliminating the ban to keep local gamblers and their money at home, may now be planning a three-year lift on locals gaming to see how much it boosts tax revenues and interest in the jurisdiction by global gaming developers.
Investment analyst Professor Augustine Ha Ton Vinh said that a new draft decree will permit Vietnamese residents to gamble at only two casinos in the country, located in Van Don Island, Ha Long Bay in North Vietnam and on Phu Quoc Island in South Vietnam.
“I believe Vietnam will see a new and booming gaming industry which will significantly help boost foreign direct investment, improve local and regional tourism, stem outflows of capital, develop new skilled labor, etc.,” said Ton Vinh in a statement. “I am confident the Ministry of Finance will get its final draft decree approved and will soon release it, possibly in the next few months.”
The decree reportedly would require that all local gamblers be 21 years of age or older, show proof of income and have no criminal record before they can enter and play at one of the selected casinos, WCD reported. In addition, local residents would have to pay an entrance fee of $50 for each visit or get a monthly pass costing $1,100. Such entry fees are usually designed to curb problem gaming.
The latest draft decree may also allow smaller casinos in Vietnam to expand. Developers of large integrated resorts would be required to make an investment of no less than $2 billion to be eligible for a license.
Earlier this year, Union Gaming analyst Grant Govertsen said international investors see Vietnam “as one of the prized global greenfield opportunities”—but only if it opens the door to locals. And Shaun McCamley, head of Asian operations at Global Market Advisors, told CNBC.com that the existing ban “kills any interest for large gaming companies to invest in IR projects.”
Vietnam is seen “as a potential great investment opportunity should the government allow locals,” Govertsen said. “Las Vegas Sands has been the most visible and vocal major gaming developer who has an interest in Vietnam.”
