Casino Business has always been one of the industries with extremely attractive profit margins; if exploited properly, it can bring significant economic benefits. The Decree 03/2017/NĐ-CP on casino business, effective from March 15, 2017, has opened up many opportunities for businesses wishing to operate in this field.
What is casino business? Conditions for casino business in Vietnam
Casino is a conditional business activity, subject to strict control by the competent state management agency to ensure that all betting activities are conducted in accordance with the law, minimize social evils, and bring benefits to the nation and society. 
All explanations regarding the conditions and regulations for casino business activities below are extracted from Decree 03/2017/NĐ-CP2. Specifically, for the activities of operating casinos, you are invited to learn more in the article what is a casino.
a) Conditions for obtaining a Certificate of Eligibility for Casino Business
– Obtained an investment registration certificate or investment policy decision from the competent state management agency, which includes casino business activities; – The enterprise has completed disbursing at least 50% of the total investment capital of the project registered in the investment registration certificate or investment policy decision; – There is an area to arrange a casino business point that meets the following conditions:
- Has a separate entrance and exit
- Has electronic devices and a camera system to monitor and supervise all activities in the casino business point (24/7), ensuring monitoring of the following basic positions: Entrance and exit of the casino business point, area for game machines, gaming tables, cashier area, cash counting vault area, and storage area for cash and tokens. The monitoring images through electronic devices and camera systems at basic positions must be stored for a minimum of 06 months from the date of recording. If necessary, the storage period may be extended as required by the competent state management agency;
- Has a security force, with adequate protective equipment, fire prevention and fighting equipment, emergency exits, ensuring security and safety according to relevant legal regulations;
- Has fully posted rules for entry and exit in Vietnamese, English, and other foreign languages (if any) in a conspicuous position at the entrance and exit of the casino business point
– There is a manager in charge of the casino business point with a minimum university degree and at least 01 year of experience in managing casino business activities 
– There is a business operation plan that includes the following contents: Information about the enterprise, information about the implementation status of the investment project, the duration of the request for permission to operate a casino, projections about the number of game machines, gaming tables, types of gambling games, evaluation of business effectiveness, projected demand for foreign currency revenue and expenditure, solutions to ensure security, order, and social safety for the casino business point, and the implementation plan. However, casinos still have secrets to help increase their revenue. Specifically, Vaobo88 has revealed in the article secrets of the casino.
b) Conditions for granting the Investment Registration Certificate for the project of service, tourism, and entertainment complex with a casino
– Has been approved by the competent authority regarding the policy to allow the implementation of the project with a casino;
– Casino business activities can only be granted an Investment Registration Certificate along with the service, tourism, and entertainment complex project with minimum investment items such as: Hotel, service area, tourism, commerce, entertainment, conference center;
– The minimum investment capital of the project is 2 billion US dollars;
– There is a feasible plan and measures suitable to the conditions of Vietnam to control and limit the negative impacts of casino business activities.
– In cases where the investor is not required to obtain an Investment Registration Certificate according to the provisions of investment law, the conditions for the competent state management agency to decide on the investment policy are implemented according to the provisions of Clause 1, Article 23 of Decree 03/2017/ND-CP.
c) Conditions on security and order
– Must be registered, licensed, or established according to the provisions of Vietnamese law.
– The person responsible for the security and order of the business establishment must not fall into one of the following cases:
a1) For Vietnamese people:
- Has been prosecuted for criminal charges that the judicial authorities of Vietnam or foreign countries are investigating, prosecuting, or adjudicating.
- Has a criminal record for crimes against national security or other intentional crimes with a sentence of over 3 years in prison that has not been expunged; is currently under a suspended sentence; is serving a non-custodial reform sentence; is under house arrest, prohibited from residence, prohibited from holding positions, prohibited from doing business in sectors and trades with conditional investment related to security and order as decided by the Court.
- Is currently subject to educational measures at the commune, ward, or town; has a decision to apply administrative handling measures while waiting for the decision to be executed; is addicted to drugs; is temporarily suspended or temporarily suspended from the decision to be sent to a compulsory educational institution or a compulsory rehabilitation center; has been subjected to administrative handling measures but has not yet met the time limit to be considered as not having been subjected to administrative handling measures;
a2) For Vietnamese citizens residing abroad holding foreign passports and foreigners: Has not been granted residence by the competent authority of Vietnam, meets fire safety and firefighting conditions according to the provisions of fire prevention and firefighting law.
– Business establishments in sectors and trades must have a security and order assurance plan.
– The security and order assurance plan includes the following basic contents:
Identify the area, locality, and specific targets that need to be strengthened to ensure security and order;
- Implementation measures;
- Regular service forces;
- Service vehicles;
- Organizational and directive measures;
- Coordination measures with local authorities and relevant functional agencies where the business establishment operates;
- Assumed situations when incidents related to security and order occur; mobilization of forces and means; handling measures.
Documents required for the issuance of a Casino Business Eligibility Certificate
The documents required for the issuance of a Casino Business Eligibility Certificate include the following materials:
- Application for the Certificate of Eligibility for Casino Business. The application for the Certificate of Eligibility for Casino Business must be in the form specified in Appendix No. 01 issued together with Circular 102/2017/TT-BTC;
- Authenticated copy of the Investment Registration Certificate or investment policy decision, which includes casino business activities and any adjusted Investment Registration Certificates or investment policy decisions (if any) issued by the competent state management authority in accordance with the law on investment, or a non-authenticated copy presented alongside the original for comparison.
- Documents and materials proving that the enterprise has completed the disbursement of investment capital. The enterprise must have completed the disbursement of at least 50% of the total investment capital of the project registered in the Investment Registration Certificate or investment policy decision;
Documents and materials proving that the enterprise has completed the disbursement of investment capital must include: – Report from the enterprise on the status of disbursement of investment capital for the service, tourism, and entertainment complex project with a casino, including the following basic contents:
- Project name, objectives and scale of the project, total investment amount of the project, investment items and progress of implementation of the items of the project as specified in the Investment Registration Certificate or investment policy decision;
- Status of disbursement of investment capital and implementation of the items of the project as specified in the Investment Registration Certificate or investment policy decision up to the time of requesting the issuance of the Certificate of Eligibility for Casino Business.
- Investment capital must be directly disbursed to organizations or individuals related to the enterprise in the purchase and sale of assets, payment of costs incurred to form assets, and other costs related to the investment.
– The implementation of the items of the project must be reflected in the contracts for the implementation of the project items, the acceptance minutes specifying the accepted volume, and confirmation from an independent unit (supervisory consulting unit or project management consulting unit). The enterprise is responsible for the accuracy and honesty of the reported data; – Commitment from the investor regarding the status of disbursement of investment capital and the status of implementation of other commitments (if any); – Audit report from an independent auditing organization approved to conduct audits for public interest entities in accordance with the auditing law regarding the reports of the casino business enterprise. The audit report must be a full approval report as per the regulations of independent auditing law; – Other documents and materials proving that the enterprise has completed the disbursement of investment capital (if any).
- Diagram of the location of the casino business point.
- Draft Internal Management Regulations, organization of the Internal Control Department, internal regulations on anti-money laundering, Dispute Resolution Regulations, and Game Rules.
- Business operation plan for the casino including the following contents: Information about the enterprise, information about the status of project investment implementation, duration of the request for permission to operate the casino, expected number of gaming machines, gaming tables, types of gambling games, evaluation of business efficiency, expected demand for foreign currency revenue and expenditure, solutions to ensure security, order, and social safety for the casino business point and implementation plan.
- List, criminal record certificates, authenticated copies of diplomas certified by the competent state authority proving the professional qualifications and skills of the manager in charge of the casino business point or non-authenticated copies presented alongside the original for comparison.
Process and procedures for issuing the Certificate of Eligibility for Casino Business
The business submits one set of documents requesting the issuance of a Certificate of Eligibility for Casino Business to the Ministry of Finance for verification of the completeness and validity of the documents. Within 15 days from the date of receipt of the documents, the Ministry of Finance notifies the business about the completeness and validity of the documents and requests the business to supplement documents (if any) and submit 06 official sets of documents for appraisal. Within 60 days from the date of receiving valid documents, the Ministry of Finance considers issuing the Certificate of Eligibility for Casino Business. In case of refusal to issue the Certificate of Eligibility for Casino Business, the Ministry of Finance notifies the business in writing and states the reasons for the refusal.
Procedure for Document Appraisal
Within 15 days from the date of receiving valid documents, the Ministry of Finance sends the documents to seek opinions from relevant agencies including: the Ministry of Planning and Investment, the Ministry of Public Security, the Ministry of Culture, Sports and Tourism, the State Bank of Vietnam, and the People’s Committee of the province where the business applies for permission to operate casino business;
Within 15 days from the date of receiving sufficient opinions, the consulted agency must provide written opinions to the Ministry of Finance and is responsible for the contents consulted;
After receiving the opinions from the relevant ministries and sectors, the Ministry of Finance summarizes the opinions and considers deciding whether to issue or not issue the Certificate of Eligibility for Casino Business.
Content of Appraisal
Based on the provisions of Decree 03/2017/ND-CP and other relevant legal regulations, the Ministry of Finance and relevant agencies appraise the documents according to the contents that meet the conditions for issuing the Certificate of Eligibility for Casino Business.
Casino Tax in Vietnam
Casino tax in Vietnam is calculated on two aspects: Business & players.
In which, the business is calculated based on the actual revenue from the cash exchange counter of the casino, while for players, it is the VAT tax calculated on the winnings.
Specifically as follows:
1/ Casino Business Tax
Casino business tax is classified as a special consumption tax, applied at 35% based on the total actual revenue from the cash exchange counter of the casino.
According to Decree 03/2017/ND-CP of the government for this special business type, the taxable revenue must not only rely on the business’s reports but also be closely monitored throughout the operation process.
a) Close Monitoring
The conventional currency exchange activities at the casino can be accurately entered into the computer.
Therefore, accounting software prescribed by the Ministry of Finance must be used and connected to the Tax Authority to ensure strict control.
b) Establishing a Supervision Team
In addition to reporting on the software, the competent authority also needs to establish a supervision team to closely monitor all activities of the business.
The amount reviewed from the conventional currency exchange counters of the casino must completely match the amount reported by the business on the software system.
In addition, the surveillance camera system must be fully installed in: the area for table games, the area for slot machines, the treasury, the cashier counter, the entrance and exit of the gambling facility, and all areas related to business activities.
The proposed tax rate to promote this special business type is 15% for the first 10 years instead of the current 35%, which is still under consideration.
2/ Casino Tax Applicable to Winning Players
For players, the condition to gamble directly must be strictly adhered to.
In addition, players who win bets also need to pay a special income tax VAT on winnings over 10 million VND.
Specifically, the tax rate is 10% (Winning amount – 10 million VND) / winning ticket.
8 companies licensed to operate casinos
There are 8 units across the country that have been legally granted the right by the government for this special business type:
- International Tourism Joint Venture Hai Phong with Do Son Casino.
- Royal International Joint Stock Company with Ha Long Casino, Quang Ninh.
- International Hotel Joint Venture Lao Cai with Lao Cai Casino.
- Special Tourism and Entertainment Unit Silvershore Hoang Dat with Crown Casino Da Nang.
- Novaland with Ho Tram Project: Ho Tram Strip Casino in Ba Ria Vung Tau City.
- Nam Hoi An Project with Nam Hoi An Casino, Quang Nam.
- Hong Van Hotel Joint Stock Company with Hong Van Casino, Mong Cai.
- Phu Quoc Investment and Tourism Development Joint Stock Company – Corona Resort & Casino Phu Quoc.
Eligible players at casino business points
- Foreigners and Vietnamese citizens residing abroad with foreign passports issued by competent authorities of foreign countries, valid travel documents, and legal entry into Vietnam.
- Implementing a pilot program for Vietnamese citizens to play at casino business points for a period of 3 years, starting from the date the first casino business is allowed to pilot Vietnamese citizens to play at the casino business point.
These are the conditions for operating casinos in Vietnam. As for businesses operating gambling services, online casinos, most of them must go through the Pagcor license. So, What is Pagcor?? And What is Gambling??
Conditions for Vietnamese citizens to play at casino business points
- Must be at least 21 years old and have full civil legal capacity according to Vietnamese law;
- Must have sufficient financial capacity to participate in playing at the casino business point. Players must prove they have a regular income of 10 million VND/month or are subject to tax from level 3 or higher according to the Personal Income Tax Law.
- Must purchase a ticket to participate in playing at the casino business point. The ticket price is 1 million VND/24 continuous hours/person or 25 million VND/month/person;
- Must not be among those whose relatives with full civil legal capacity in the family are father, adoptive father, mother, adoptive mother, wife, husband, biological child, or themselves have submitted a request for the casino business not to allow them to play at the casino business point;
- Vietnamese citizens allowed to play at the casino business point may only use Vietnamese Dong to exchange for the designated currency and may exchange the designated currency back to Vietnamese Dong in case they do not use it all or win a prize.
Conclusion
The activity of casino business worth billions of USD has not yet been properly exploited according to its value and potential in Vietnam. Currently, our country only has 7 – 8 legally operating casinos contributing to the economy. Leaders need to abandon the mindset of “if it can’t be managed, then ban it,” as this will cause our country to miss out on rapid economic development opportunities. Learning from the casino management models of more developed countries such as: Macau, Hong Kong, Singapore, Europe, etc. will put an end to the situation where Vietnamese people spend billions of USD annually on foreign casinos and bookmakers.
