In a surprise move, the Ministry of Finance this week ruled that local Vietnamese are still barred from entering casinos in Vietnam.
VnExpress reports that the ministry submitted a draft decree stating that only foreigners and Vietnamese with foreign passports can gamble in casinos, which is unchanged from the old policy. In 2013, the Politburo, the Communist Party’s decision-making process, gave permission for Vietnamese who meet certain criteria to gamble at a proposed casino in Quang Ninh Province, on the border with China. Industry insiders expected this to pave the way for full legalization, but the Ministry of Finance’s decision overrules this instead.
The news source quoted a senior ministry official saying that “we are continuing to study and gauge the social impacts of letting Vietnamese punters into casinos. We want to report to the higher-ups about the ramifications this could have, such as organized crime, gambling additions, money laundering and other illicit activities.”
While social ills are a valid concern when it comes to gambling, critics of the policy argue that Vietnam is losing out financially thanks to its strict stance. Many gamblers simply hop across the border to bet in Cambodia, or head to Hong Kong or Macau. As a result, according to research by Augustine Ha Ton Vinh on Vietnam’s gaming industry, the country loses up to US$800 million a year in tax revenue from Vietnamese gambling in Cambodia.
The requirements to establish a casino are stringent as well, as foreign investors wishing to do so must built an integrated resort, invest at least US$4 billion and have 10 years of experience operating casinos.
[Photo via VnExpress]
