On 16 January 2017, the Government issued Decree No. 03/2017/ND-CP on casino business operations (“Decree 03”). Below are the salient points of Decree 03:
- Permission for Vietnamese citizens to game at casinos in Vietnam
As a 3−year pilot scheme, Decree 03 allows Vietnamese citizens residing in Vietnam who: (i) are 21 or older, (ii) have a regular income of at least VND10 million per month, and (iii) who receive no objections in writing from siblings, spouses and/or biological and adopted parents – to access and game at Vietnam-based casinos.
In order to access and game in a casino in Vietnam, Vietnamese players must buy an entrance ticket at a cost of VND1 million per 24 consecutive hours, or VND25 million per month. The proceeds from these tickets will be contributed to the local state budget.
Any company desiring to operate a casino (“Casino”) must issue an electronic card to every Vietnamese player to track their identities and any activities they undertake. Specifically, the card must record information about: (i) the player’s code number, (ii) full name, (iii) ID/Passport number, (iv) identification photo; (v) times of entry/exit from the casino, and (vii) the amount of money used for playing and the amount of prize money for each occasion of playing at the business location of the Casino.
- Conditions and licenses for casino business activities
According to Decree 03, a casino is a conditional business, and can only be conducted as an ancillary business in association with the main business (e.g. regarding tourism, a hotel, a resort or a complex entertainment activity) (“Project”). The Casino, if invested by foreign investors, must apply for the following main licenses: (i) investment in-principle approval of the Prime Minister for the Project (“Prime Minister’s Approval”); (ii) Investment Registration Certificate for the Project (“IRC”) (in case the Project is invested by local investor, this IRC shall not be required), and (iii) a certificate of satisfaction of conditions applicable to casino business activities (“SC”) in order to legally operate the casino business.
Under the Law on Investment, the IRC is issued by the provincial People’s Committee based on the Prime Minister’s Approval. In terms of minimum capital requirements, the Project must have a total capital investment of at least USD2 billion.
The SC is granted by the Ministry of Finance after the Casino, in addition to satisfying other technical requirements, has contributed at least 50 per cent of the total registered investment capital of the Project. The SC’s term of validity shall be subject to the term of the Project, however must not exceed a period of 20 years from the effective date of the IRC or the Prime Minister’s Approval. With respect to an existing and operating casino project, the Casino may apply for an SC with a maximum term equivalent to the remaining term of its existing IRC.
A Casino that has obtained an IRC and has operated a casino before the effective date of Decree 03 is not required to obtain an SC, and can continue to operate based on its existing license. In such cases, the number of permitted electronic gaming slots and gaming tables of the Casino, as well as the location of the casino and its operations, must be in compliance with its issued IRC. If a Casino that has undertaking casino activities would like to increase its number of gaming slots and gaming tables, then such Casino may apply for an SC provided that the requested number of slots and tables does not exceed the total amount which has been approved under the issued IRC. For a Casino that has obtained an IRC but has not undertaken any casino activities, obtaining an SC is mandated.
Where a casino undertakes any foreign currency activities (e.g. exchanges or payments), the Casino must obtain a relevant license from the State Bank of Vietnam.
- Number of electronic gaming slots and gaming tables
The quota on electronic gaming slots and gaming tables for any Project is to be decided by the Prime Minister on the basis of the total investment capital registered by the Casino. As such, the Casino may have 10 electronic gaming slots and 1 gaming table for every USD10 million of contributed investment capital. This provision is applied to both a newly-invested Project and an expanded Project.
According to Decree 03, the number of slots and tables a Casino may have at a specific point in time is subject to the amount of contributed investment capital. Thus, the more capital it has paid, the more electronic gaming slots and gaming tables the Casino may be allowed to put into operation. In addition, any increase in the number of permitted gaming slots and gaming tables for operation would require an amendment to the SC, which can only be made if the total investment capital contributed at the time of applying for the amendment is at least USD100 million greater than the investment capital contributed at the last issuance of the SC.
Decree 03 took effect on 15 March 2017.
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