Vietnam suspends three-year casino pilot programme

Sudhanshu Ranjan December 31, 2024

SiGMA news

The Vietnamese government has made a pivotal decision to suspend its three-year pilot programme allowing locals to gamble at casinos. Effective midnight on 31 December 2024, Vietnamese nationals will no longer be permitted to gamble at the Corona Resort & Casino in Phu Quoc.

Background of pilot programme

The pilot programme was introduced in 2016 with the approval of the Politburo. Its primary aim was to assess the social and economic impacts of allowing Vietnamese nationals to gamble legally under strict conditions. Initially slated for two casinos, only the Corona Resort & Casino in Phu Quoc became operational during the trial period. To participate, locals had to meet stringent entry criteria, including proof of a minimum monthly income of VND10 million. Additionally, they were required to pay entry fees of VND1 million per day or VND25 million for a monthly pass.

The Corona Resort & Casino was a flagship project on the island of Phu Quoc, launched in January 2019. The resort, backed by an investment of VND50 trillion, was the first in Vietnam to open its doors to locals under the pilot scheme. Despite its potential, the casino faced challenges in achieving profitability. Analysts point to high depreciation costs, interest payments, and a post-Covid decline in player numbers as major factors behind its financial struggles.

Reasons for the suspension

The Corona Resort & Casino thanked its clients and reiterated with pride its status as the first authorised casino for Vietnamese locals. Unfortunately, in the announcement, the programme has been temporarily suspended, allowing room for consideration at a future date.

While the suspension is in place, it remains unclear if the programme will continue, be scrapped altogether, or undergo changes. Chinese tourists can neither play nor gamble in the casino anymore, whereas those with foreign passports remain unaffected.

Despite a post-pandemic increase in tourist numbers, the casino reported a loss of over VND300 billion in the first half of 2024. Phu Quoc welcomed six million tourists in 2024, a nearly 50 per cent increase from 2019. With its stunning natural beauty and favourable visa policies, the island has become a prime destination. However, this hasn’t translated to consistent profitability for the casino, highlighting the complex relationship between tourism and gambling revenue.

Potential for recovery

The growing reputation that Phu Quoc is building as an irresistible global travel destination could potentially redeem the performance of the casino in the long run. Recognition by global travel rankings, together with ongoing tourism projects, means that there could be a much brighter future.

The suspension leaves locals with hardly any further legal gaming options, providing many with some limited opportunity to gamble in a regulated environment. This three-year experiment could unlock vast insights into the economics and social consequences of regulated gambling.