Vietnam Extends Casino Pilot Program for Locals Until 2024

Vietnam Extends Casino Pilot for Locals Until 2024 Despite Mixed Financial Outcomes

In a move that reflects both cautious optimism and the need for further evaluation, Vietnam has extended its pilot program allowing locals to gamble in casinos until the end of 2024. Originally launched in 2019 and significantly impacted by the COVID-19 pandemic, this program marks a historic shift in Vietnam’s approach to gambling, which was previously restricted to foreign visitors. Learn how this pilot program has evolved, the challenges it has faced, and what its extension means for the future of gaming in Vietnam.

The Genesis of Vietnam’s Casino Pilot Program

Vietnam’s journey towards allowing locals to participate in casino gambling began in 2016 when the Politburo approved a limited trial for two casino projects. The idea was to test the waters and see if controlled gambling for locals could contribute positively to the economy without inciting social issues. The two chosen locations were Phu Quoc in Kien Giang Province and Van Don in Quang Ninh Province.

While the Phu Quoc casino, later named Corona Casino, successfully opened its doors in January 2019, the Van Don project never came to fruition. The Corona Casino, located in a burgeoning tourist hub, required Vietnamese patrons to meet stringent entry criteria. Locals had to be at least 21 years old, prove a monthly income exceeding VNĐ10 million (approximately $402.50), and pay an entry fee of VNĐ1 million for a 24-hour pass. These measures were put in place to ensure that only those who could afford it would participate, thereby minimizing the risk of social harm.

Impact of the COVID-19 Pandemic

The initial phase of the Corona Casino’s operation was marked by promising footfall, with nearly 300,000 Vietnamese locals visiting the casino alongside 180,000 international guests. However, just as the casino was beginning to gain momentum, the COVID-19 pandemic struck, leading to widespread disruptions.

The aptly named Corona Casino faced unprecedented challenges as the pandemic forced the closure of its gaming halls for several months in 2021. This unexpected halt prompted the government to consider extending the trial period, recognizing that the true potential of the pilot program could not be accurately assessed amid the pandemic’s disruptions.

Financial Outcomes and Challenges

Despite the challenges, the Corona Casino has reported significant, albeit mixed, financial outcomes since its inception. By the end of 2023, Vietnamese gamblers had collectively spent VNĐ242 billion on entry passes, contributing to the casino’s total accumulated revenue of VNĐ6.404 trillion. This revenue also added VNĐ3.679 trillion in taxes to the state’s coffers, demonstrating the potential financial benefits of the program.

However, the casino has also faced financial difficulties, posting cumulative losses of VNĐ3.7 billion last year. These losses were largely attributed to high initial depreciation and interest costs, which have weighed heavily on the casino’s profitability. The mixed financial performance raises important questions about the long-term sustainability of allowing locals to gamble in Vietnamese casinos.

The Extension and Future Implications

With the pilot program now extended until December 31, 2024, Vietnamese lawmakers have granted themselves additional time to thoroughly assess the impact of local gambling on both the economy and society. This extension will allow for a more comprehensive evaluation, considering the program’s performance post-pandemic and its potential for sustainable growth.

As part of this assessment, officials will examine whether the program has met its economic goals without exacerbating social issues. If the results are favorable, the government may consider making the program permanent, thereby opening the doors for more casinos to welcome local players. On the other hand, if the experiment is deemed unsuccessful, the program may be discontinued.

Vietnam’s decision to extend the locals-only casino pilot program until the end of 2024 reflects the government’s cautious approach to gambling regulation. While the program has shown promise in generating revenue, it has also faced significant challenges, particularly due to the impact of the COVID-19 pandemic. As the trial continues, the future of casino gambling for locals in Vietnam remains uncertain, hinging on the government’s ability to balance economic benefits with social responsibility. The upcoming years will be crucial in determining whether this experiment will pave the way for a broader acceptance of gambling within the country or if it will remain a tightly controlled exception.