Undercover investigation reveals communist involvement in illegal gambling rings within Vietnam
Unleashing the Gambling Tide: A Look at Vietnam's Rollercoaster of Gambling Legalization
Gambling in Vietnam has Trojan-Horsed its way from strict prohibition into a burgeoning industry, thanks to a series of - sometimes illogical - policy shifts. For decades, the only legal spot of gamble was the state-run lottery with a plethora of illegal street kiosks offering card games and dice.
In the early 2000s, high-rollers yearned for more, and border casinos began cropping up in Vietnam's Cambodian boundary. The rich fickily opted for destinations like Macau or Singapore, keeping their dough overseas. Recognizing the potential for revenue, Vietnam started sanctioning casinos, but only for tourists, forcing locals to revert to the long trek for a taste of Lady Luck.
Digital green-shoots started popping up with the rise of internet penetration from 34% in 2013 to 75% in 2023. This appreciated online gambling, albeit illegally. The government wielded a legal sledgehammer to the rogue casino market in 2013, decriminalizing poker gaming machines. The 44th gaming platform secured the crown as the first legal one, with a catch - locals remained barred from playing, only foreigners could stake their claims.
In 2017, Vietnamese citizens were granted entry not just to serve coffee in casinos but also to indulge in gambling. With a population nearing 100 million, the scenario unfolded reminiscent of a sponge soaking up water.
Two decrees trotted out. The first opened the floodgates for legal bets, with horse racing and international football as the preferred ponies on which to wager. The maximum bet was capped at the equivalent of $42 with the bookmaker's registered capital pegged at $13-$42 million, contingent on the gambling options they could offer. The second decree dipped its toes into the waters of trial land-based casinos. Despite the regulatory rigmarole, it took two more years to sort out licensing.
Casino Corona: A Dramatic Entrance
Casino Corona unveiled its doors in January 2019, boasting a trial license valid for three years. The pandemic arrived in the spring, but Casino Corona continued to thrive, raking in $4.5 million in six months before pandemic restrictions halted its winning streak in 2021.
The Ministry of Finance was impressed enough to extend its license for another two years, citing citizen satisfaction and burgeoning revenues for the treasury in 2022. Gambling seemed to be going strong, with more than 45% of Vietnamese placing bets on sports.
International Expansion: Friend or Foe?
Despite the promising figures, global operators face a challenge in diving into the Vietnamese market. Legal restrictions are stiff, and online gambling remains prohibited, limiting career opportunities for foreign operators. Meeting licensing requirements and navigating the regulatory landscape - a labyrinth of multiple state agencies - is a daunting task. Taxation laws further muddy the waters, making it an uphill battle for potential newcomers. Vietnam's dried-up lottery river flows steadily, but international operators may find it difficult to stake their claim on its shores.
- What about the role of the finance industry and banking-and-insurance sector in Vietnam's gambling sector? Have they stepped in to capitalize on the growing trend?
- As betting on sports like football and horse racing becomes legal in Vietnam, does the casino-and-gambling industry see an opportunity to include finance services such as sports-betting loans and insurance for gamblers?
- With the growing population's increasing interest in casino-games and sports-betting, will the casino-and-gambling industry collaborate with banking-and-insurance to offer secure, financeable casino-games and sports-betting platforms, both offline and online?
- Given the regulatory complexities and taxation challenges for international operators trying to enter the casino-and-gambling market in Vietnam, could the said industry form strategic alliances with banking-and-insurance institutions to navigate these obstacles more effectively?
