Phu Quoc Casino in Vietnam Records Loss Despite Increase in Revenue
The popular Vietnamese casino Phu Quoc recorded an accumulated loss of VND3.7 trillion, according to a recent report. Despite the revenue increasing by 45.7% and overall better results in 2023 than was the case back in 2022, the casino is still struggling, as Ho Duc Phoc, a Minister of Finance, reports.
Pilot project:
In Vietnam, only foreign tourists are able to place bets in most casinos. However, Phu Quoc and Van Don are an exception, since the casinos started a pilot program that allows the citizens to gamble as well. But not all Vietnamese can place their bets – in order to do that, they have to comply with strict requirements, including personal records, age, financial capability, and behavioral capability.
One of the main reasons why the casino is falling is the fact that Vietnamese have decided to gamble in other countries since the borders were opened after the COVID-19 pandemic measures were lifted.
At the moment, Vietnam features nine casinos in total. Six of them are small, while three casinos are big, with about 8.500 employees. They are still a great asset to the state’s finances, since only in 2023 the state generated VND2.541 trillion in taxes on their operations.
Since the Phu Quoc casino was opened in January 2019, it brought VND3.679 trillion in taxes to the state. In four years, until the end of 2023, the casino generated a consolidated revenue of VND6.404 trillion (US$259 million).
However, the high amortization costs and interest payments in the period after the opening caused a loss of VD3.724 trillion ($154 million). But despite that, the casino records a significant growth compared to previous years.
From 2019 to 2023, 295,943 country residents visited the casino, which is 62% of all players. There were foreigners as well – in the same period, 179,507 tourists visited it, which is 38% of the total number.
Most of the players are somewhere around 39, while the age ranges from 21 to 97.
According to Phoc, As VietnamNet reports, the Ministry of Finance (MOF) doesn’t plan to allow the citizens to gamble in other casinos.
Running for sports betting operator:
But changes are here when it comes to the sports betting industry. The country is granting one company an opportunity to offer international football betting services for five years, which will be considered as a trial phase.
The new operator hasn’t been chosen yet, but MOF is supposed to collaborate with other departments to pick the company. Among the requirements for the lucky operator are at least VND1 trillion of charter capital, as well as an advanced betting system and organized business plans.
According to the 2013 Law on Bidding, the provision isn’t included when it comes to bids to choose the investors.
MOF is planning to amend Decree 06 through a new decree, which is in progress at the moment, so the process of bidding is easier for both countries and investors.