Casino operators are voicing their concerns over a proposed plan by regulatory bodies to increase the monthly casino entry fee to VND50 million ($1,900). Some operators suggest this amount should instead be set as the annual entry fee.
The Ministry of Finance is currently inviting feedback on an initiative to raise the entry fees for casinos. The proposal also includes an increase in the price of a one-day ticket by 2.5 times to VND2.5 million. At the moment, there is no option to purchase annual tickets.
The Ho Tram Project Company, the entity operating the Ho Tram Casino in Ho Chi Minh City, has put forward a suggestion for the introduction of an annual ticket at a cost of VND50 million, with no changes to the existing rates. This initiative would equate to approximately VND4.2 million per month, or 16.8% of the present VND25 million. The company states that this pricing structure aligns with that of Singapore, where visitors pay VND3 million for a 24-hour pass and VND60 million for an annual pass.
The Corona Casino, located on Phu Quoc Island, has proposed fixing the one-day ticket price at VND1.5 million, with a VND35 million monthly pass. These prices are 30-40% lower than the new proposed rates.
The ministry, however, has dismissed both proposals, arguing that increased pricing is necessary to dissuade individuals with insufficient funds from engaging in gambling activities. The Ministry of Justice previously stated that using entry prices as a measure of a player’s finances is not an effective approach.
At present, Vietnamese citizens are permitted to enter three casinos, the third being the Van Don Casino in Quang Ninh province near the Chinese border. Vietnam has six other casinos; however, these are exclusively open to foreign visitors, as the government continues to maintain strict control over the gambling industry.
The Phu Quoc casino, which is operated by a subsidiary of Vingroup, was the pioneer in allowing local entry through a pilot program initiated in 2016. The venue houses 1,470 slot machines and 147 gaming tables. Over the past five years, Vietnamese patrons have made up 52% of the casino’s clientele and contributed to 88% of its revenue. However, these figures have seen a downward trend following the Covid-19 pandemic, with local patronage dwindling to a mere 12% last year.
Why have casino operators objected to the proposed increase in entry prices?
Casino operators argue that the suggested price hikes could deter visitors, leading to a decrease in revenue. They propose that these increased fees should instead be applied to annual tickets.
Why does the Ministry of Finance believe higher entry prices are necessary?
The Ministry of Finance maintains that increased entry prices are a means to discourage individuals who may not have sufficient financial resources from indulging in gambling activities.
Why have the numbers of Vietnamese patrons at the Phu Quoc casino decreased since the onset of the Covid-19 pandemic?
The reduction in local patronage may be due to factors such as economic hardship caused by the pandemic, increased health concerns, and the implementation of social distancing measures.
