The Vietnamese legislature is mulling over a plan to extend a pilot program that will allow its citizens to take part in its casino gambling industry, once only limited to foreigners. This program, which was initially set to conclude in 2022, will be pushed to December 31 this year. Although it was launched in 2019, the concept for this program was developed in 2016 when the Politburo approved the establishment of two local casinos. The said gambling houses were to preliminarily operate as a trial run for just 3 years. The initial plan was for one of the two casinos to be developed in Phu Quoc, Kien Giang Province, and the other in Van Don, Quang Ninh Province.

However, only one of the two casinos saw the light of day. This was the Corona Casino Phu Quoc which officially became the first casino in the Southeast Asian country to allow Vietnamese citizens to gamble. Its first construction phase cost the Vietnamese government VNĐ25 trillion ($1.005 billion) and was expected to double by the time it was finished. To be allowed to wager for three years, Vietnamese citizens had to part with an entry fee of VNĐ1 million ($43) for 24 hours at that time. All these funds would then be directed into the coffers of the Kien Giang province. The Southeast Asian country then set the legal gambling age for its locals at 21 years or older.

These gamblers were also required to produce documents showing their monthly income surpassed VNĐ10 million ($430). The documents included copies of a player’s rental income, a bank deposit showing interest receivable, tax returns, or discharge of tax obligation for taxable income graded at least class 3 for the last year. The government also allowed citizens to show multiple sources of income with a combined total of up to VNĐ10 million. The daily operations of this casino were overseen by Uppfinity Gaming Management, a company with roots in the Netherlands. This international casino management company has vast previous experience in Europe and Macao.

While the Corona Casino Phu Quoc initially got off to a splendid start, it eventually ran into a major roadblock in the form of the COVID-19 pandemic. In 2021, the casino was closed for many months amid a surge in infection numbers. This is one of the main reasons why the Vietnamese government considered extending the period of the trial run. Since 2019, the casino has so far served 300,000 Vietnamese citizens and 180,000 non-locals. The age range of Vietnamese players at the casino is between 21 and 97 years, with the majority falling in the 39-year-old category.

The Extension is Part of an Extensive Review of the Trial

The decision to extend the trial period was rooted in a decree that emanated from the Ministry of Finance to the Vietnamese government. This decree sought to amend Clause 2, Article 12 of decree no 03/2017/ND-CP on casino business. Additionally, the Ministry of Finance worked hand in hand with the Ministry of Public Security, the Ministry of Planning and Investment, the Ministry of Culture, Sports, and Tourism, the State Bank, and local peoples’ committees.

These different ministries and citizens’ committees conducted a comprehensive review of the local casino pilot program. The collaborative approach from the various governmental organizations in Vietnam was meant to ensure that all the aspects of the trial are well examined from its economic benefits to its social impacts.

In the thorough review, one of the primary goals was to assess the potential benefits of allowing Vietnamese citizens to play in the casinos. The benefits were evaluated through various lenses, including revenue generation, job opportunities created, and any potential social issues that come with casino gambling.

Opinions on the outcome of the review have been far and far between. That said, the Ministry of Finance, at the end of the review in 2022, felt that it was necessary to extend the trial period for another 2 years. A statement by the ministry read in part:

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“The trial program… has proved to be a correct policy that satisfies the needs of a group of citizens and increases government revenue.”

What Do the Prevailing Numbers Say?

One of the pertinent attributes that the government will look at to determine whether the casino program will have a long-term future will be the revenue numbers generated. If the underlying figures are anything to go by, then the future of casino gambling for the locals doesn’t appear to be bright enough. The returns of the local casino are hardly impressive.

In 2023, Vietnamese citizens spent a cumulative VNĐ242bn ($9.7 million) on entry passes at the Phu Quoc. In accumulated revenue, the casino registered VNĐ6.404tn ($257.4 million) in taxable income, which translated to a healthy figure of VNĐ3.679tn ($147.9 million) directed to the state’s coffers as taxes. The casino also reported losses worth VNĐ3.7 billion ($148.7K).

For local Vietnamese gamblers, this extension offers the opportunity to continuously access local casino games without the need to travel abroad. Not only is this a money-saving incentive to local gamers, but it also enhances the responsible gambling spirit for them.

This trial extension also accords more avenues for community engagement. The casino platform may host tournaments and events, which will ultimately foster a sense of togetherness and harmony with the surrounding communities. Meanwhile, it remains to be seen whether the casino will get an additional extension beyond 2024.