Vietnam has decided to extend its trial period allowing local citizens to gamble at select casinos until December 31, 2024. This decision follows mixed financial results from the Phu Quoc casino, the only casino currently participating in the trial. Initially set to conclude in 2022, the extension aims to provide more time for evaluating the impact and viability of allowing Vietnamese locals to participate in casino gambling, which has traditionally been reserved for foreign visitors.
Mixed Financial Results from Phu Quoc Casino
The Phu Quoc casino, operational since January 2019, has shown both promising and challenging financial outcomes. Over the trial period, the casino generated VND 6.4 trillion (approximately $258 million) in revenue and contributed nearly VND 3.69 trillion ($148 million) to the state budget. Despite these contributions, the casino reported a cumulative loss of VND 3.72 trillion ($150 million), primarily due to high initial depreciation and interest costs. The financial performance improved in 2023 compared to previous years, but the accumulated losses highlight the challenges faced by the casino in its early years of operation.
The trial’s extension aims to provide additional time for a thorough evaluation of these financial outcomes and their implications for the future of local gambling in Vietnam. The mixed results from Phu Quoc will be crucial in determining the next steps for the country’s casino industry.
Government’s Cautious Approach
A draft decree has been submitted by the Ministry of Finance to the Vietnamese Government, proposing the extension of the trial period for the Phu Quoc casino until the end of 2024. This decree also outlines that other casinos will follow a three-year trial period starting from the date they receive their Certificate of Eligibility for Casino Business. The Ministry of Finance, in collaboration with other governmental bodies such as the Ministry of Public Security, the Ministry of Planning and Investment, and the Ministry of Culture, Sports, and Tourism, will conduct a comprehensive review of the trial period.
This review will be crucial in determining whether the trial will be further extended, altered, or concluded by the end of 2024. Should the Government fail to issue a resolution by the trial’s end, casinos will temporarily suspend allowing Vietnamese citizens to gamble. The decision to extend the trial reflects Vietnam’s cautious approach to expanding its casino industry to include local participation.
Future Implications for Vietnam’s Casino Industry
The extension of the trial period is a significant move in Vietnam’s evolving gambling policy. The Phu Quoc casino’s results, both in terms of financial performance and player demographics, will serve as a key indicator for the future direction of the industry. The trial has seen a high level of local interest, with 295,943 Vietnamese citizens visiting the casino, making up 62% of its total visitors. The remaining 38% were foreign nationals.
The outcomes of this trial will significantly impact future regulations and the broader strategy for developing Vietnam’s integrated resort sector. This sector aims to boost tourism, generate employment, and contribute to the economy. The extension provides an opportunity to address the challenges faced by the casino and to refine the approach to local gambling in Vietnam.