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Of late, Vietnam has been in the news throughout casino circles because it is ready to shut down the huge pilot program that allowed its local citizens to gamble. Corona Resort & Casino in Phu Quoc said that it will cease admissions for Vietnamese nationals to its gaming floors with effect from midnight on December 31, 2024. Forerunner of this move marks the end of this three-year trial, which started in 2019.
Brief History of the Trial
The trial received its nod from the Vietnamese government back in 2016 to determine the impact caused by legalised gambling for locals. The three-year program is scheduled to allow locals conditionally if they present at least minimum monthly income of VND 10 million – and pay an entry fee of VND 1 million per day or VND 25 million per month.
The Corona Resort took bets starting in January 2019, the first casino where it was legal for locals to gamble. Operations were severely disrupted during the supposed trial period by the COVID-19 pandemic, a development that called into question the accuracy of results coming in. However, it granted an extension of the experiment until the end of 2024 late last year to get concrete data about its efficiency.
Suspension Decision
Casino executives, however, announced via its website that local gambling would be suspended beginning Dec. 30, 2024. Relatively grateful to the patron’s customers, it drove a single point: This would probably be a “temporarily suspension.” They, afterwards, announced that they could have continuing access for international customers while all citizens owning foreign passports could play.
The Ministry of Finance then will pore over the results of the trial in minute detail before making any decision on whether to actually go forward or kill the program. If at the end of the trial period there is no resolution, casinos have to shut the local gambling down completely.
Mixed Financial Results
Despite attracting nearly 300,000 locals since its opening, Corona Resort & Casino has not been financially healthy at all. Partly, while it did reportedly rake in around VND6.4 trillion or about $258 million, in revenue between 2019 and 2023, it also reportedly suffered upwards of VND3.7 trillion ($150 million) in losses during that period. Very high depreciation and interest payment burdens have made up the largest part of these losses.
While locals have mostly stayed away, international tourism has jumped on Phu Quoc. The island is expected to welcome about 6 million tourists this year-more than double the pre-pandemic levels. Yet for the Corona Resort, that rush has yet to yield any profit.
The Future of Gambling in Vietnam
While Vietnam is still in motion with plans to develop its tourism segment, Phu Quoc also remains a leading investment and growth focus. It finds a place in the ‘best places to travel in Asia,’ according to prominent publications such as Travel+Leisure and Condé Nast Traveller. Favoured visa policies, topped by projects for the development of tourism worth more than VND388 trillion ($16 billion), may probably be just the signals that get Phu Quoc on its toes.
The operator does, however, remain hopeful for the resumption of the local gambling activities in the future. It promised to continue the benefits meant for the Vietnamese customers and will notify them if and when the operations resume.
The suspension of the local gambling at Corona Resort & Casino represents a new twist in the journey of Vietnam towards regulated gambling for its citizens. Of course, there are still challenges in the way: financial losses and operational obstacles; yet, there is growth too, with tourism mushrooming on Pearl Island. Looking into 2025, all eyes fall upon the decision-makers of Vietnam, which way they will consider the future of local gambling within the country’s vibrant tourism landscape.
Source: igamingbusiness.com
