LEGAL GAMBLING PLANS FOR VIETNAM?

4 January 2008

Government ministries working on a proposal


After years of discussing the possibility (see previous InfoPowa reports) the Asian country of Vietnam is seriously considering the legalisation of gambling to better manage the activities and draw tax revenues from the pastime, news agency VNA reported this week.

The ministries of Finance and of Planning and Investment are currently drafting a proposal for submission to the Hanoi government for consideration, under which it may be empowered to issue special regulations to "....ensure the sound operation of gambling services providers, prevent potential crimes in association with gambling activities, and safeguard the legitimate interest of gamblers and bettors."

Prior to 2003, all forms of gambling, except the state-run lottery service, were illegal in Vietnam, the VNA report informs. Since then, the government has allowed some four- or five-star hotels in the country to establish electronic centres to offer gambling games provided these are restricted to foreign passport holders.

Four licensed casinos - Do Son in northern Hai Phong city, Hoang Gia and Loi Lai in northern Quang Ninh province, and Lao Cai in northern Lao Cai province operate - designated only for foreigners and overseas-resident Vietnamese.

Gambling has good potential as a tax revenue generator - the state-run lottery service currently accounts for 2.4 percent of Vietnam's gross domestic product, according to statistics from the Finance Ministry. The service grows annually by 22 percent, and its contribution to the state budget makes up 2.5 percent of the total.

In addition, it is conservatively estimated that Vietnam currently has over 200 people who offer illegal gambling services based on daily lottery results. Each of these makes revenues of between 500 million Vietnamese dong (nearly US31 300) up to billions of Vietnamese dong (hundreds of thousands of dollars) each day.

Online Casino News courtesy of InfoPowa