How do you deal with the rewarded entertainment industry?

01-10-2020 |  

The rewarded entertainment industry, if developed, may make a positive contribution to society, but the issue of how to manage to minimize negatives is a matter of debate.

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 move was immediately seen by many experts as the next step to open up the rewarded entertainment market in the context that Vietnam's tourism industry needs new motivations for growth.

Currently, the system of legal documents governing the field of prized play in Vietnam has been completed at the Government's Decree level, accordingly, 3 types of prize play are allowed to do business including bets, casinos and video games with prizes for foreigners.

The regulation only stops at the level of "he hé"

In many countries around the world, the award-winning entertainment industry thrives, meeting the needs of society and bringing large revenues to the budget. These activities are considered to be one of the constituent parts of the entertainment industry and indispensable in developed society.

However, in Vietnam due to the stigma of social psychology and apprehension in state management, the award-winning entertainment industry is developing "holding back" in the style of "walking and tracking". Therefore, the scale of the operation of this field is still "very expensive" compared to the region.

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

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.

What principles do you develop based on?

Experts say that the rewarded entertainment industry in Vietnam has a large development area, which if well exploited can contribute to the state budget of several billion USD per year. However, it must be frankly said that social psychology has a significant impact on the promulgating of policies. The half-hesitant type causes the industry to suffer, affecting investor psychology and the progress of projects.

Currently, there are 3 large-scale casinos that have not yet been deployed in Quang Nam, Khanh Hoa and Thua Thien Hue. Horse racing betting, greyhound racing, international football betting… very interested by tourists. However, in addition to a pilot business betting dog racing in Ba Ria – Vung Tau, currently some provinces and cities such as Hanoi, Phu Yen, Vinh Phuc, Da Nang, Lam Dong … new projects are proposing projects to build racecourses, greyhound racing, including betting business.

The apprehension and reservations raised by Mr. Nguyen Van Phung, Director of The Department of Large Corporate Tax Administration (General Department of Taxation) were not open: "Casino needs to be a little slower. I don't like casinos very much, because it's hard to manage. Other activities should open soon".

As mentioned, the legal corridors for the award-winning entertainment industry as stated, are now revealing inadequate development needs. In the opinion of businesses, economists, it is necessary to make additional amendments to suit the new situation. Regarding chalk, financial expert Can Van Luc said that it is necessary to attach rewarded entertainment services to Vietnam tourism development will be very effective because it promotes the same development. However, it is necessary to carefully refer to the international experience of the previous countries in this field.

Meanwhile, giving an opinion on how to organize and manage rewarded play activities, economist Vo Tri Thanh said that this industry must rely on a few principles.

"Vietnam has had political support but is extremely reserved, so it does not release awareness and is very worried about social issues. Every industry must have principles", Mr. Thanh emphasized.

Accordingly, Mr. Thanh said that the first principle, is to be internationally competitive, because this is a global industry. This is extremely important and should be put first.

The second rule is that having rewarded fun is only part of entertainment, so there must be a combination in planning and organization.

The third principle is that there must be specific provisions on direct contribution of the budget to society only. "In Singapore, for example, visitors to a large casino here have to pay $100 and $100 is deposited directly into the small and medium-sized enterprises and the poor," Thanh said for example.

The next principle is that the organization must be transparent, professional and explaining, both in the process of operation and the way it is organized. "It is not enough for a lottery room of the Ministry of Finance to manage the current prize-winning fun activities," Thanh said.

"In essence, rewarded play is a conditional business but the condition here also has 2 ways to choose whether to give or choose to quit", Mr. Thanh emphasized.

According to EnterNews