Emphasis on Asia: Delayed yet Destined to Succeed
Vietnam's gaming industry, often dubbed a "sleeping giant," is on the brink of significant changes. The current regulations governing locals' access to casinos are undergoing a transformation, with the Vietnamese government considering the introduction of enhanced locals gaming.
Current Regulations and Proposals
Historically, Vietnamese citizens have been largely barred from casinos, with a notable exception being the Corona Resort & Casino on Phu Quoc Island, which was part of a pilot program allowing locals to gamble [2][4]. However, the Ministry of Finance is proposing to loosen these rules, backed by economists who argue that allowing locals to gamble domestically could boost state revenues, increase oversight, and prevent illegal gambling activities [1][2]. The Ministry of Finance has included a proposal in a draft decree to allow Vietnamese citizens to play at all domestic casinos [2].
Pilot Programs and Developments
The initial pilot program on Phu Quoc Island ended in early 2024 after mixed results, but it laid the groundwork for future expansions [3][4]. Plans are underway to replace the requirement for locals to prove financial capacity with a simpler casino entry fee model to participate in gambling [5]. A new US$2 billion integrated resort in Quang Ninh Province, developed by Sun Group, is set to allow both locals and foreigners to gamble as part of a revamped pilot program [3][4].
Economic and Social Implications
Experts see these changes as an opportunity to increase government revenue and control illegal gambling activities by legalizing and monitoring local participation [1][2]. The developments are also aimed at reducing the flow of Vietnamese gamblers to foreign destinations like Cambodia, Singapore, and Macau [2].
Impact on Existing Casinos
Hoiana Resort & Golf, located near Hoi An, is looking for local patronage, as its original vision for Chinese high-rollers was hindered by the collapse of the Macau junket industry. Developers have invested up to US$2 billion each in Vietnam, hoping for locals to be allowed in casinos. One of the casinos named in the pilot program, in Van Don, Quang Ninh province, has not been built yet. The Corona casino's three-year trial under Vietnam's pilot program was interrupted by the COVID-19 pandemic.
The "build it and they will come" strategy has not yet worked in Vietnam. If implemented, this change could transform Vietnam's land-based gaming industry. Corona Resort & Casino, located on Phu Quoc Island, is currently favored by tourists over locals, but it may see a shift in demographics if locals are allowed to gamble. Ho Tram, a property once part of MGM Resorts' expansion plans, remains one of the most visually appealing in Asia, but its future prospects could be revitalized with the introduction of enhanced locals gambling.
In conclusion, Vietnam is moving towards a more open and regulated approach to locals gaming, with a focus on economic benefits and reducing offshore gambling losses. The success of these changes will depend on the effective implementation of the proposed regulations and the public's response to these developments.
