Vietnam has extended the local gambling trial at Corona Resort & Casino in Phu Quoc through the end of 2024, a significant development in the country’s evolving casino industry. This decision comes amid ongoing financial challenges for the resort and follows a draft decree by the Ministry of Finance aiming to amend existing regulations.
The Extension of the Local Gambling Trial
The Vietnamese government’s recent move to extend the trial period for local gambling at Corona Resort & Casino represents a notable shift in the country’s regulatory approach. Originally launched in January 2019, the casino’s trial period has been affected by the COVID-19 pandemic, which disrupted operations and hindered its financial performance. The draft decree submitted by the Ministry of Finance proposes extending the trial period and includes provisions for other casinos that might qualify for similar trials, offering them a three-year period from the date they receive their Certificate of Eligibility.
Current Landscape of the Casino Industry in Vietnam
Vietnam’s casino industry is marked by a mix of local and foreign-focused establishments. The country currently has nine licensed casinos, including three prominent integrated resorts. Corona Resort & Casino in Phu Quoc stands out as the only one open to local residents, while The Grand Ho Tram and Hoiana cater exclusively to international visitors. This segmentation reflects varying strategies within the industry, from targeting local gamblers to focusing on foreign tourists.
Financial Performance and Challenges at Corona Resort & Casino
Since its opening, Corona Resort & Casino has struggled with significant financial difficulties. In 2023, the casino generated revenues of VND 2.2 trillion (approximately USD 89 million) but faced substantial losses amounting to VND 3.72 trillion (approximately USD 149 million). The financial strain on the resort underscores the challenges of attracting local patrons and achieving profitability, particularly in the wake of the COVID-19 pandemic, which severely impacted global travel and local economic conditions.
Government Review and Implications for the Future
The Vietnamese government has undertaken a comprehensive review of Corona Resort & Casino’s performance from January 2022 to August 2023. This review involved collaboration among several ministries, including the Ministry of Finance, the Ministry of Public Security, the Ministry of Planning and Investment, the Ministry of Culture, Sports and Tourism, the State Bank of Vietnam, and the local People’s Committee. The findings of this review will influence future decisions regarding the trial period, determining whether the current setup should be continued, modified, or terminated.
Impact of the Extension on the Casino Industry
The extension of the trial period for local gambling at Corona Resort & Casino has several implications for the broader casino industry in Vietnam. It suggests potential regulatory adjustments that could open the door for other casinos to engage in local gambling trials, thereby expanding the market. Additionally, the ongoing financial struggles of Corona highlight the difficulties of running large-scale integrated resorts in Vietnam, emphasizing the need for effective strategies to attract local gamblers and ensure profitability.
The government’s extensive review process underscores the importance of regulatory oversight in the gambling sector, aiming to ensure that casinos operate within established guidelines and contribute positively to the economy. The outcomes of this review will likely shape the future regulatory landscape and influence how the industry adapts to both local and international market conditions.
The extension of the local gambling trial at Corona Resort & Casino is a significant development in Vietnam’s casino industry. While the casino continues to face financial challenges, the government’s decision reflects a broader effort to integrate local gambling into the market and assess its viability. The ongoing review and potential regulatory changes will play a crucial role in determining the future of local gambling in Vietnam, impacting both the industry and the regulatory environment.