Vietnam’s Phu Quoc casino accumulates $259.1 million in accumulated losses

A new report claims that the experimental casino operated by the Vietnamese Ministry of Finance on Phu Quoc has lost almost VND6.4 trillion ($259.1 million) so far.

The Vietnam News claims that the Ministry presented a report on the status of the nation’s casino industry to the National Assembly. According to Minister of Finance Ho Duc Phuoc, poor participation in the pilot program enabling Vietnamese citizens to bet is causing financial problems.

Vietnamese citizens were initially permitted to gamble at specific casinos on Phu Quoc Island and in Van Don District, according to the Politburo’s 2016 approval of the trial for a three-year period. But as of January 2019, just the casino project on Phu Quoc Island has opened.

The report indicates a tendency of project losses despite ongoing trials and coordinated efforts across ministries and sectors. The project generated about VND6.4 trillion ($259.1 million) in income between 2019 and 2023, with 2023 exhibiting a notable rise over the preceding year and making a significant contribution to the State budget.

One significant issue has been the decline of Vietnamese players, who in 2023 will make up just 39% of all trips. The study attributes this decline in part to the COVID-19 pandemic, which has caused a gradual increase in foreign visitor arrivals starting in 2022.

Notwithstanding these challenges, the casino industry has showed signs of life, contributing more than VND2.54 trillion ($102.8 million) to the State budget in 2023—a considerable increase over 2022—and creating jobs for close to 8,500 people.

Minister Phuoc proposed stricter requirements going ahead, highlighting the need for large investments in the service, tourist, business, and entertainment sectors—a minimum of $2 billion—when granting casino licenses. Moreover, casinos would only be allowed to begin with specific approval from the Prime Minister and Politburo, as well as after paying out at least half of the total investment funds.

Original story by: Asia Gaming Brief