According to a recent report by the Vietnamese government, Vietnam has decided to extend the trial period allowing its citizens to gamble in selected casinos until December 31, 2024.
This extension is part of a pilot project launched at the Phu Quoc Casino, aimed at assessing the feasibility and impact of allowing local residents to participate in casino gambling, which is usually limited to foreigners.
Detailed information on the extended trial period and financial performance:
The pilot program was originally scheduled to end in 2022 but has now been extended to the Phu Quoc Casino, while other casinos will undergo a three-year trial operation from the date they receive operational certification. This ongoing assessment, led jointly by the Ministry of Finance and several other government agencies, is crucial for determining whether to further extend, modify, or stop the trial after 2024.
Since its operation began in January 2019, Phu Quoc Casino has had mixed financial results during the pilot phase. Although the casino's revenue grew from 2019 to 2023 to 6.4 trillion Vietnamese dong (approximately 258 million USD), it also incurred losses of 3.72 trillion Vietnamese dong (approximately 150 million USD) due to high depreciation and financing costs. Despite these financial challenges, the casino contributed nearly 3.69 trillion Vietnamese dong (approximately 148 million USD) to the national budget during the same period.
Reportedly, the casino attracted nearly 295,943 Vietnamese players, accounting for 62% of the total customer flow, with ages ranging from 21 to 97 years old. These demographic data are particularly important as they help shape the future regulatory and operational strategies for the casino industry across Vietnam.
Meanwhile, the Ministry of Finance has submitted a draft decree to amend the casino operating regulations, specifically including extending the trial period for casinos allowing Vietnamese gamblers until the end of 2024. This revision is part of a broader effort to refine casino operating guidelines, ensuring well-regulated operations and benefiting economic and social objectives.
Broader impacts and future directions:
As part of its broader economic strategy, Vietnam is keen on developing the integrated resort industry, which not only boosts tourism but also creates significant employment and revenue. However, the extension of the pilot also highlights the complexity of balancing regulatory issues with economic interests. The outcomes of the Phu Quoc project and other similar initiatives may influence the future prospects of Vietnam's casino gambling.
According to the Asia Gaming Brief, in line with this extension, the Politburo has approved extending the Phu Quoc Casino project until the end of the year and initiating a three-year trial operation at the Yuntun Casino after it begins operations. These measures reflect the Vietnamese government's cautious yet methodical approach to expanding the casino industry to include local participants.
This initiative remains an important component of Vietnam's evolving gambling policy and its integration with the broader leisure and tourism industry. As the trial progresses, relevant ministries will continue to closely monitor and assess its impact, ensuring that decisions made are in the best interests of the nation and its citizens.
