VN extends trial period for local citizens to play in casinos until the end of 2024

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

The Ministry of Finance has submitted a draft regulation to the government amending Clause 2, Article 12 of Regulation No. 03/2017/ND-CP on casino business. The draft regulation stipulates that the probationary period of the first casino company to allow Vietnamese citizens to gamble will be extended until the end of 2024. Other casinos will be subject to a three-year probationary period from the date they receive their eligibility certificate.

The Ministry of Finance will conduct a comprehensive review and evaluation in cooperation 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. Based on these evaluations, the authorities will decide whether to end or continue the trial. If the government does not provide a solution by the end of the trial period, the affected casinos will temporarily ban Vietnamese citizens from gambling.

The Ministry of Finance stresses that the definition of the trial period and evaluation process is crucial for assessing the effectiveness of allowing Vietnamese citizens to gamble in casinos. This clarity will also enable the companies involved to manage their operations more effectively and plan appropriate strategies.

In May 2024, the Politburo approved an extension of the probationary period for the Phu Quoc casino project until the end of the year. The Van Don casino project will have a three-year probationary period from the start of its operation.

The initiative to allow Vietnamese citizens to gamble in casinos began in 2016, when the Politburo approved two projects – Phu Quoc (Kien Giang) and Van Don (Quang Ninh) – to allow local citizens to participate on a trial basis. However, only the casino in Phu Quoc has started operations, and that was in January 2019.

In January 2017, the government issued Decree No. 03/2017/ND-CP, allowing Vietnamese citizens to gamble in casinos for three years from the approval of the first test casino. This test was originally scheduled to be completed in January 2022. Between January 2022 and August 2023, the government conducted a review and evaluation of the test at the Phu Quoc casino.

In June 2024, the Ministry of Finance submitted to the Prime Minister, under an accelerated procedure, a proposal to amend and supplement Decree No. 03, in particular paragraph 2, Article 12. The government leadership approved this proposal in early July.

In a report submitted to members of the National Assembly in March, Finance Minister Ho Duc Phoc noted that by law, casinos are primarily intended for foreigners. Vietnamese citizens are only allowed to gamble in Phu Quoc and Van Don casinos under certain conditions related to personal background, age, financial capacity and legal eligibility.

There are currently nine casino projects in operation in Vietnam – six small and three large. In 2023, these casino companies contributed VND 2,541 billion to the state budget and created about 8,500 jobs.

The attempt to allow Vietnamese citizens to gamble in casinos has so far only been carried out in Phu Quoc Casino, which has been in operation since January 2019. From 2019 to 2023, Phu Quoc Casino generated a total revenue of VND 6,404 billion and contributed VND 3,679 billion to the state budget.

Although the Phu Quoc casino project achieved better business results in 2023 compared to 2022, it still recorded a total 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 (62% of all players) and 179,507 foreigners (38% of all players) visited the casino. The age range of Vietnamese players at Phu Quoc Casino is between 21 and 97 years old, with the majority being 39 years old.

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

Binh Minh