Rewarded entertainment industry: 'Open toang' or 'he hé'?

01-10-2020 |  

The amendments to a number of provisions of Decree 6/2017 on the business of betting on horse racing, greyhound racing and international football are considered as the next step to opening the market of prized entertainment services.

The Ministry of Finance is consulting on the draft amendments to a number of provisions of Decree 06/2017 on the business of betting on horse racing, greyhound racing and international football with more opening points than the document first issued 3 years ago. This is considered as the next step to open up the market of rewarded entertainment services in the context that Vietnam's tourism industry needs new motivations for growth.

Previously, regulations on rewarding activities such as Decree 03/2017 on casino business, Decree 06/2017 and Decree 175/2016 on trading in prized video games for foreigners … has created the first foundations for investors to enter the market. However, these regulations are said by experts to stop at the level of "opening the door" for businesses, making the playground after regulations can not be busier than before.

As with sports betting, the previous rule required matches, betting competitions that had to be published and ratified by the World Football Federation (FIFA). The Ministry of Culture, Sports and Tourism is responsible for announcing the list of these matches. In fact, the organization is solely responsible for organizing and announcing tournaments, matches that they and continental member federations host, and not all international football tournaments. Meanwhile, these tournaments are not much (4-8 tournaments), usually have a very low frequency (usually 2-4 years to have a final round, lasting 10-30 days, the qualifying matches are played in batches). Business opportunities are less so while the minimum investment rate must reach VND 1,000 billion, resulting in 3 years of regulation taking effect, the Ministry of Finance has so far not selected any enterprises as a pilot.

Therefore, Decree 06/2017 has been revised towards expanding the list of tournaments and piloting the selection of a betting business for a period of 5 years.

Inside a casino in Ba Ria – Vung Tau. Photo: Investment Newspaper.

Similarly, Decree 03/2017 has expanded conditions for investors to enter the casino market by removing the regulation that businesses must have at least 10 years of experience and the investment rate of tourism and entertainment complexes has decreased from USD 4 billion to USD 2 billion. At the same time, for the first time, Vietnamese people can play casino after a long time of betting and bonusing activities only for foreigners.

However, there are still vague regulations, which become a development barrier for this "industry" in Vietnam. For example, to enter casino business points, Vietnamese people must have an income of VND 10 million / month. To prove, players must bring documents such as lease contracts, properties or authentication of bank savings books, bank deposit account statements with a term of one year or more with interest in monthly of VND 10 million or more. These procedures are considered troubling by Mr. Nguyen Hoang Hai, Vice Chairman of Vietnam Association of Financial Investors.

Not to mention, when visitors come to the hotel to intend to play casino, the above verification procedures will be a barrier that prevents them from entering.As such, both casinos and the state have lost revenue. Mr. Hai said that the condition of buying a ticket of VND 1 million / person when entering is a test with the financial capacity of many people.

Proposing the orientation of casino development and bonus entertainment in general in the coming time, Dr. Vo Tri Thanh – Former Deputy Director of the Central Institute for Economic Management said that when developing the type of bonus entertainment business in general and casino in particular, it is recommended to "open the door", "play big" and "play professionally" at the pilot stage of development instead of just "opening he".

At the same time, Mr. McCamley, a member of Global Markets Advisors, the world's leading consulting services provider operating in a variety of sectors such as aviation, resorts and casinos, also pointed out that the legalization of casino business activities is showing the regulator's bipartisany. This is shown in the selection of casino development locations. Accordingly, the casino pilot in Van Don or Phu Quoc cannot be achieved successfully if the revenue is only expected on tourists. Instead, large and dynamic cities such as Ho Chi Minh City have the potential to pilot the development of casino projects.

In addition, in countries where casino activities develop, they also only regulate the minimum and maximum wagering levels instead of specifying the number of bets placed in a day.

Specifically, in the UK, Ladbrokes Company stipulates a minimum bet of £1, equivalent to more than VND 29,000, a maximum of £25 equivalent to more than VND 732,000 per bet and no number of bets placed in a day. Or, William Hill Company stipulates a minimum bet of £1, the maximum associated with a bonus of no more than £2 million per day. South Korea also only stipulates a minimum bet on a single bet of 100 won (about VND 2,000) and does not specify the player's bet level at a casino business unit or the number of bets placed during the day.

Dr. Can Van Luc, Member of the National Monetary and Financial Policy Advisory Council, said that along with the easing of appropriate business conditions, it is also necessary to have a specialized agency in charge of this activity to guide the development of synchronization, methodic and professional development associated with night economic development.Currently China, Singapore and Malaysia all have a dedicated lead in prized play activities such as the National Council for Rewarded Play or the Seahorse And Lottery Administration.

From international experience, especially from Australia, Singapore – the country has used the legal corridor effectively to maximize the benefits and minimize the negative impact, Prof. Nguyen Thuong also said that it is necessary to amend the system of policies and laws on rewarding entertainment business. , casinos in the direction of approaching international advanced practice, stability and transparency to encourage organizations and individuals who are Vietnamese and foreign to invest and do business effectively.

Regarding state management, according to the President of the Association of Foreign Investors in Vietnam (VAFIE), there are two models: the establishment of a National Council for Rewarded Entertainment Activities (modeled after Singapore) or allowing the People's Committee of the province or city to license, manage and supervise rewarded entertainment activities (Australian model).

Previously, VAFIE sent a document to the Government to donate economic recovery measures by developing casino services and rewarded entertainment. Currently, the casino and entertainment business is currently carried out in 43 hotels large and small and resorts with revenue growth steadily over the years, the market size has doubled since 2017 but business and social efficiency is not commensurate with the potential and advantages.

According to Prof. Nguyen Thuong, the reason is that the casino business and rewarded entertainment have not agreed on the views and perceptions of attracting foreign investment in this field and the general law has not approached international practice. At the same time, these business activities are managed by the Ministry of Finance but the resources are limited, so the appraisal and issuance of business registration certificates … delayed.

The proposal comes as the Prime Minister directs the rapid recovery and development of tourism in the country and prepares all necessary conditions for the restoration of international tourism as some countries have quelled the epidemic.

According to CafeBiz/ Companion