Until now, Vietnam has yet to formally legalise documents to cover operations of casinos, while electronic gaming services are allowed within the framework of the governmental Decision 32, issued six years ago.
In accordance to the MoF’s draft decree, only five-star hotels will be eligible for providing electronic gaming services. This new licencing criteria is stricter, since currently four-star hotels in Hanoi and Ho Chi Minh City and three-star hotels in other cities and provinces already qualify.

Meanwhile, the MoF has proposed that businesses with at least 10 years of experience in the field can apply to open casinos in Vietnam. But, such casinos must be incorporated in recreational and tourism projects, the minimum capital of which would be determined by the government for a certain period of time. Additionally, licences for casinos must be approved by the prime minister.

“The businesses will be allowed to operate their casinos only after they complete disbursing half of the committed investment capital of the licenced projects and proving their ability to finance the rest of the committed funds,” said the draft decree.

A licence for operating casinos in Vietnam would not exceed 30 years and that for electronic gaming services would not exceed 10 years. According to the draft decree, the MoF will be the licencing agency of casinos and electronic gaming services, instead of the Ministry of Planning and Investment (MPI).

The MoF’s draft decree, however, did not actually set any limits to the number of casinos and electronic gaming providers across the country. MPI statistics showed that there were four businesses currently operating small-scale casinos in northern Haiphong, two in northern Quang Ninh province and one in northern mountainous Lao Cai province.

Additionally, Silver Shores Hoang Dat, which was licenced in 2006, will soon open its resort with casinos in Danang. Last year, Canada’s Asian Coast Development Limited’s $4.2 billion Ho Tram Strip resort complex in southern Ba Ria-Vung Tau province was licenced, and allowed casinos. The complex is set to open in 2011.

The MPI said a growing number of foreign investors had expressed interest in building new casinos in Ho Chi Minh City, Quang Nam province, Ba Ria-Vung Tau, Kien Giang province’s Phu Quoc Island and Binh Thuan.
“Vietnam should have only three casino projects, one in Quang Ninh, one in Quang Nam and one in Phu Quoc,” said Pham Ich Tong, chairman of Global C&D, an investor of the Dragon Beach Resort in central Quang Nam province.

Licenced in September this year, Dragon Beach Resort will be jointly developed by the US’ Tano Capital and Global C&D at a cost of $4.1 billion, featuring nine hotels and associated gaming facilities, a 50 hectare park, an international convention centre, a shopping centre and office and residential spaces on a 400ha site close to Hoi An Ancient Town.

Also under the draft decree, only foreigners and Viet Kieu will be allowed to gamble at either casinos or electronic gaming locations in Vietnam, despite growing petitions from businesses to the government to allow Vietnamese nationals’ entry.



Date Posted: 26-Nov-2009