Vietnamese sports bettors gamble billions of dollars annually, but most of the revenue flows to overseas operators. Experts say that if the government amends the 2017 decree, the market has a chance to develop.
If regulations are more relaxed, Vietnam could develop a profitable sports betting industry. This was the consensus of business and financial experts at a seminar hosted by the Investor's Newspaper and the Vietnam Association of Foreign Invested Enterprises (VAFIE) on November 28.
Decree Six: Cumbersome, Unclear, Ineffective
According to Youth Newspaper, the focus of discussion was Decree No. 6, implemented in Vietnam in 2017. This legislation ostensibly opened the door for legal betting on horse racing, dog racing, and international football. It also established a framework for sports betting operators.
However, speakers at the Hanoi seminar stated that these rules are vague, restrictive, and outdated.
For gamblers, Decree No. 6 restricts legal gambling to 20 pilot jurisdictions in Vietnam and caps bets at 1 million Vietnamese dong (£33.20/€40/$42). For operators, it requires a proven capital of at least 1 trillion Vietnamese dong for horse and football betting and 300 billion Vietnamese dong for dog betting. It also demands 5% of revenue to be handed over to the state. Experts advocate for a 5% profit.
But in the internet era, the biggest obstacle might be the reliance on paper and telephone betting, as Decree No. 6 does not allow mobile and online gambling.
Nguyen Ngoc My, chairman of Vabis Group and a business leader in Ho Chi Minh City, stated that Vietnamese policymakers must embrace digital applications, as igaming is an "inevitable and irreversible strategic trend."
Rules May Change by 2025
Huang Yu, chairman of Tianfu Co., Ltd., stated that Vietnamese gamblers spend up to $10 billion annually, mostly on football, but currently, most of the revenue goes abroad.
He advocates for regulations that are favorable to business, keeping these taxable revenues within the country rather than benefiting overseas operators.
Nguyen Mai, chairman of VAFIE, called sports betting a "regulated industry, but the government is reluctant to manage it." However, this situation might change in the coming year.
According to the Investor's Newspaper, the Standing Committee of the National Assembly has set 2025 as the final deadline for the Vietnamese government and the Ministry of Finance to amend the decree. Suggestions made at the seminar will be submitted to the Ministry of Finance to promote the development of the industry.
As economist Can Van Luc stated, sports betting is "a cultural, entertainment, and tourism demand," and it will continue to exist regardless of how Decree No. 6 is enacted. The government might also benefit from it.
