Vietnam extends trial period for local citizens to play at casinos until end of 2024

The trial period allowing Vietnamese citizens to play at the Phu Quoc casino in Kien Giang will extend until December 31, 2024. For other casinos, the trial period will be three years from the date of receiving the Certificate of Eligibility for Casino Business.

A draft decree amending Clause 2, Article 12 of Decree No. 03/2017/ND-CP on casino business has been submitted by the Ministry of Finance to the Government. The draft decree stipulates that the first casino enterprise permitted to allow Vietnamese citizens to play will have its trial period extended until the end of 2024. Other casinos will follow a three-year trial period from the date they receive their Certificate of Eligibility.

The Ministry of Finance, in collaboration with the Ministry of Public Security, the Ministry of Planning and Investment, the Ministry of Culture, Sports and Tourism, the State Bank of Vietnam, and local People's Committees where casinos are permitted, will conduct a comprehensive review and assessment. Based on these evaluations, the authorities will decide whether to terminate or continue the trial. If the Government does not issue a resolution by the end of the trial period, the casinos involved will temporarily suspend allowing Vietnamese citizens to play.

The Ministry of Finance emphasizes that specifying the trial period and evaluation process is crucial for assessing the effectiveness of allowing Vietnamese citizens to play at casinos. This clarity also enables the enterprises involved to manage their operations more effectively and plan appropriate strategies.

In May 2024, the Politburo agreed to extend the trial period for the Phu Quoc casino project until the end of the year. The Van Don casino project will have a three-year trial period starting from the commencement of its operations.

The initiative allowing Vietnamese citizens to play at casinos began in 2016 when the Politburo approved two projects - Phu Quoc (Kien Giang) and Van Don (Quang Ninh) - to allow local participation on a trial basis. However, only the Phu Quoc casino has commenced operations, starting in January 2019.

In January 2017, the Government issued Decree No. 03/2017/ND-CP, which permits Vietnamese citizens to play at casinos for three years from the authorization of the first trial casino. This trial was originally set to conclude in January 2022. Between January 2022 and August 2023, the Government conducted a review and assessment of the trial at the Phu Quoc casino.

In June 2024, the Ministry of Finance submitted a proposal to the Prime Minister to amend and supplement Decree No. 03, particularly Clause 2, Article 12, following an expedited procedure. The Government leadership approved this proposal in early July.

In a report submitted to National Assembly deputies in March, Minister of Finance Ho Duc Phoc noted that, according to the law, casinos are primarily intended for foreign nationals. Vietnamese citizens are only allowed to play at the Phu Quoc and Van Don casinos under specific conditions related to personal background, age, financial capacity, and legal eligibility.

Currently, nine casino projects are operational in Vietnam - six small-scale and three large-scale. In 2023, these casino businesses contributed VND 2,541 billion to the state budget and created approximately 8,500 jobs.

The trial allowing Vietnamese citizens to play at casinos has so far only been implemented at the Phu Quoc casino, which has been operational since January 2019. From 2019 to 2023, the Phu Quoc casino generated cumulative revenue of VND 6,404 billion, contributing VND 3,679 billion to the state budget.

Although the Phu Quoc casino project saw improved business results in 2023 compared to 2022, it still recorded an accumulated loss of VND 3,724 billion due to high initial depreciation and interest costs.

From 2019 to the end of 2023, 295,943 Vietnamese citizens (accounting for 62% of total players) and 179,507 foreign nationals (accounting for 38% of total players) visited the casino. The age range of Vietnamese players at the Phu Quoc casino is between 21 and 97 years, with the majority being 39 years old.

Minister Ho Duc Phoc noted that the company has generally complied with the licensing conditions and regulations for organizing casino business activities.