Legalized Gambling | A Pilot Case of CASINO BUSINESS IN VIETNAM

On January 16th 2017, the Government issued Decree No. 03/2017/ND-CP (“Decree 03”) on casino business.
I.                  Notable regulations under Decree 03
1.                 Vietnamese citizens can gamble in casinos
Upon the issuance of Decree 03, Vietnamese are only allowed to play in two casinos in Phu Quoc (Kien Giang) and Van Don (Quang Ninh) under a pilot project. Now, Vietnamese citizens can enter casinos and gamble with certain conditions.
2.                 Certain conditions for Vietnamese players
Vietnamese players must satisfy the following legal and financial conditions:
(i)                They must be at least 21 years old and have full civil capacity under the laws of Vietnam.
(ii)              A player must have sufficient financial capacity to play in a casino. The player must prove their regular income is 10 million VND/month or more, or subject to tax level 3 or above, in accordance with the Law on Personal Income Tax.
(iii)            A player has to buy a ticket to play in the casino. Ticket price: 1 million VND/ 24 hours, or 25 million VND/ month / person.
(iv)            There is no request to ban this player from his/her relatives who have full civil capacity in the family, including father, adoptive father, mother, adoptive mother, spouse, children or themselves.
(v)              Persons who have been prosecuted, criminal, hold a criminal record or are a drug addict are not allowed to play in the casinos.
3.                 Electronic cards for the player
For strict management purposes, the casino shall issue an electronic card for the player, which includes content such as card number, name, ID number, and photo.
4.                 Currency
While foreigners can use both USD and VND to gamble in the casino, Vietnamese players can only use VND.
II.               Comments:
1.                 Effectiveness of Decree 03
Up till now, there are no casinos in operation yet, therefore, Decree 03 has not been applied in practice. Decree 03 takes effect on March 15, 2017. Under Article 12.2 of Decree 03, Vietnamese citizens can gamble during the pilot implementation period of 03 years from the date of the first licensed casino business enterprise.
2.                 Rationale for Decree 03
Allowing Vietnamese to play in casino keeps the money in the country, limiting the foreign currency bleeding from Vietnam. In addition, it helps the Government collect more tax revenue and manage this area efficiently.
3.                 Ticket price
Some experts argue that the ticket price for playing in the casino is expensive and goes against the general trend of casinos in the world. However, this provision is consistent with Vietnamese strict regulations.
In terms of electronic cards for players, this card should be issued according to personal income tax. It can help to control money laundering and to ensure the rights of taxpayers.
4.                  Proof of financial capacity of players
Since the Ministry of Finance still does not have any specific guidance on this matter according to Decree 03, we propose some possible documents to prove eligibility for players:
(i)                Documents proving income (for laborers)
a.      Contract labor/work decision or original confirmation from employer and Statement of accounts paid through the bank or payroll (salaries notes)
b.     Confirmation of income at work (heads signed & sealed)
c.      Other documents to prove other income.
(ii)              Documents proving income (for business owners)
a.      Business Registration & Tax Code Certification
b.     Audited financial statements of the previous year
c.      VAT declaration certified by the tax authorities.
(iii)              Documents proving income (for household business or individuals)
a.     Business Registration/Tax Code Certificate
b.     Sales books
c.     Retail invoices

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