Vietnam Loosen Laws on Casino and Gaming Allowing Vietnamese to Try Luck

On 16 Jan 2017, Vietnam Prime Minister issued Decree 03/2017/ND-CP on casino including investment conditions and procedures of foreign investment in service, tourism, and entertainment with casino, including investment registration of foreign investors, business operation license eligibility, and notable three-year pilot plan that allow the Vietnamese playing in the casino.

Vietnam has allowed investment in the field of casino business and that foreign investors have been in Vietnam since 1995. But it is expected only when Vietnam law makers loosens the regulations on casino and gaming business allowing Vietnamese to come and try luck, foreign investors would be encouraged to invest in constructing real estate, entertainment projects providing services, tourism and entertainment with gaming and casino to serve the entertainment needs of the increasing population of Vietnam, and attract international tourists.

1. Vietnamese will be accepted at casino during three-year pilot

Casino will accept Vietnamese to try luck whom must be at least 18 years of age, with regular income from 10 million / month or more, and no close family ties with the casino business enterprises. Entrance tickets will be at around VND 1 mil (around USD 50) for 24 continuous hours per person or VND 25 million (around USD 1,200) per month per person.

2. Casino Operation

The casino enterprises can only provide casino in one location and such location must be separated from other business areas of entertainment.

3. Investment Registration and Business Operation License investing and operating Casino

Eligible investors wishing to invest and operate service, tourism and entertainment with casino have to make investment a minimum capital of USD 2 billion, and submit plans to manage the negative impacts of casino operations.

Investors meet investment conditions when being granted the investment registration, business certificate and operation license in casino; has disbursed at least 50% of total capital as regulated in the investment registration; layout area for casino business; employ proper casino operation manager; and have plans approved by the authority.

Decree 03/2017/ND-CP will become effective from 15 Mar 2017 and do not affect the organizations which have been granted permission.

Currently casino in Vietnam allows foreigners such as Do Son Casino in Hai Phong, Ho Tram Casino in Vung Tau, Casino Aristo International in Lao Cai, Silver Shore Casino in Da Nang, Casino Royal Quang Ninh, and projects Casino Hoi An, Casino Van Don, and Casino Phu Quoc.

Easing regulations on casino business will help prevent flyout capital of Vietnamese to visit casinos in neighboring countries such as Cambodia, Macao; help better manage the social order in the sensitive entertainment area in Vietnam and attract foreign tourists.

Furthermore, Vietnam hopes to further integrate regionally, and internationally, attract billions of dollars of foreign investment to sustain growth, and make tourism a key sector to further develop. However, Vietnam will also meet challenges arisen in management of smuggling, illegal transportation of foreign currency, gold, silver, precious stones, precious metals, money laundering, high-tech crime and terrorist financing. Further laws will be issued to cope with the changes along the way but the loosen of laws on casino and gaming is needed.

The laws on casino and gaming will be only the beginning of an inevitable trend that attract investment in tourism and entertainment construction project. The laws has been evolving and there will be changes in the coming time which ANT Lawyers in Hanoi, Da Nang and Ho Chi Minh City will monitor and provide relevant updates.

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Please click here to learn more about ANT Lawyers Foreign Investment Practice or contact our Law firms in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529

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The Business Conditions for Sports Betting in Vietnam

Law firm in Vietnam

Law on amendments to Physical Training and Sports No. 26/2018/QH14 is in valid as of February 1st, 2019. The highlight that must be noted is sports betting as provided in Article 67a. This activity is officially governed by laws. Sports betting is a form of entertainment with rewards in which bettors predict the results of sporting events used for betting purpose.

The sports betting has a long history, but it had not been recognized by the State for a long time. Therefore, the betting was considered a violation of laws and was liable to administrative and criminal remedies. Before sports betting is restricted and just allowed to bet on horse racing, greyhound racing and pilot international soccer as specified in the Decree 06/2017/ND-CP effective from March 31st, 2017 on business of betting on horse racing, greyhound racing and international soccer. After the amendment law takes effect, the sports are allowed to bet will be extended according to the List of sports activities allowed to trade in betting issued by the Government.

What Conditions Required for Sports Betting?

Relating to condition of sports betting business in Vietnam, the enterprises need to be granted a certificate of eligibility for betting business. This is one of the conditional business lines under the strict management.

Regarding horse racing and greyhound racing, the enterprises need to obtain the Certificate of investment registration for the project for construction of horse and/or greyhound racecourses and the Certificate of eligibility for betting business. For horseracing, the charter capital requirement is VND 1 trillion ($44.2 million), while for greyhound racing it is VND 300 billion ($13.2 million). Locations of horse and/or greyhound racecourses are conformable to the socio-economic development planning of the area where such racecourses are located. Therefore, if the project attracts more than one investor, the investor for the project for the construction of horse racecourses and/or greyhound racecourses which covers the business of betting on horse racing and/or greyhound racing shall be selected through bidding process according to law.

Regarding international soccer, the procedures is similar to horse racing and greyhound racing. However, The Government allows one enterprise to pilot the business of betting on international soccer. The duration of pilot international soccer betting business shall be 05 years since the date on which the Certificate of eligibility for international soccer betting business is issued. After such period, the Government shall consider whether or not to continue the pilot international soccer betting business upon the assessment of the collected results. The list of international football matches and tournaments which are selected to provide the basis for the business of betting on international football is stipulated in the Decision No. 1064/QĐ-BVHTTDL issued by the Ministry of Culture, Sports and Tourism.

Which Authorities Will Approve the Sports Betting Activities?

The Ministry of Finance will publicize the conditions, dossiers, procedures for organizing bidding to select enterprises to pilot international football betting business according to the provisions of law. To be able to participate in bidding, the enterprises need to meet the following conditions:

(1) The minimum charter capital shall be VND 1 trillion ($44.2 million)or an equivalent amount;

(2) Having a plan on investment in the technological system, technical equipment and business software to ensure their accurate, safe and stable operation;

(3) There shall be a feasible plan on the business of betting on international soccer and ticket selling methods and locations;

(4) Committing to community assistance.

There are 135 countries in the world officially legalizing sports betting activities. Betting is increasingly on the rise, along with the development of information technology and entertainment. In Vietnam, sports betting is put under the strict management.

How ANT Lawyers Could Help Your Business?

Please click here to learn more about ANT Lawyers Foreign Investment Practice or contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529

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