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Vietnam Extends Casino Trial for Local Players Until End of 2024 Amid Mixed Financial Results

Vietnam-extends-casino-trial-period-for-local-patrons-until-year-end Vietnam has decided to extend the trial period that permits its citizens to gamble at select casinos until December 31, 2024. This decision follows the mixed financial results reported by the Phu Quoc casino during its pilot phase. The trial, initially set to conclude in 2022, has been extended to allow further evaluation of the impact and viability of allowing Vietnamese locals to participate in casino gambling, traditionally reserved for foreign visitors.

Phu Quoc Casino’s Performance Under Scrutiny

The Phu Quoc casino, which has been operational since January 2019, is the first and only casino in Vietnam where local citizens are currently allowed to gamble. Over the course of its trial, the casino generated VND 6.4 trillion (approximately $258 million) in revenue and contributed nearly VND 3.69 trillion ($148 million) to the state budget. Despite these contributions, the casino has reported a cumulative loss of VND 3.72 trillion ($150 million), mainly due to high initial depreciation and interest costs.

The financial performance of the Phu Quoc casino has been mixed, with an improvement noted in 2023 compared to the previous year. However, the accumulated losses highlight the challenges faced by the casino in its early years of operation. The trial’s extension aims to provide additional time for a thorough evaluation of these financial outcomes and their implications for the future of local gambling in Vietnam.

Extending the Trial and Broader Implications

A draft decree has been submitted by the Ministry of Finance to the Vietnamese Government, proposing an extension of the trial period for the Phu Quoc casino until the end of 2024. This decree also outlines that other casinos will follow a three-year trial period starting from the date they receive their Certificate of Eligibility for Casino Business.

The Ministry of Finance, in collaboration with other governmental bodies such as the Ministry of Public Security, the Ministry of Planning and Investment, and the Ministry of Culture, Sports, and Tourism, will conduct a comprehensive review of the trial period. This review will be crucial in determining whether the trial will be further extended, altered, or concluded by the end of 2024. Should the Government fail to issue a resolution by the trial’s end, casinos will temporarily suspend allowing Vietnamese citizens to gamble.

The decision to extend the trial reflects Vietnam’s cautious approach to expanding its casino industry to include local participation. The trial’s outcomes will significantly impact future regulations and the broader strategy for developing Vietnam’s integrated resort sector, which aims to boost tourism, generate employment, and contribute to the economy.

Looking Ahead: What This Means for Vietnam’s Casino Industry

The extension of the trial period is a significant move in Vietnam’s evolving gambling policy. The Phu Quoc casino’s results, both in terms of financial performance and player demographics, will serve as a key indicator for the future direction of the industry. From 2019 to the end of 2023, the Phu Quoc casino attracted nearly 295,943 Vietnamese players, accounting for 62% of its total patronage, with the majority of these players being 39 years old.

In parallel, the Van Don casino project, another key part of Vietnam’s casino strategy, will undergo its own three-year trial once it begins operations. The outcomes of these trials will shape the landscape of casino gambling in Vietnam, balancing regulatory concerns with the economic benefits of an expanded casino sector.

Source:

VN extends trial period for local citizens to play at casinos until end of 2024, Vietnamnet global, August 26, 2024.

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Small Texas Slot Casino Pumps $212M a Year Into Local Economy

Naskila Entertainment is a small, slots-only casino in Polk County, Texas with an outsized impact on the local economy. In fact, it’s really an electronic bingo facility but visitors get the feeling they are playing slots and most people would never know the difference – much like playing at a video lottery terminal (VLT) in a huge New York City casino.

The casino is operated by the Alabama-Coushatta Tribe of Texas on its Reservation near Livingston, about 75 miles north of Houston, a city of over two million people.

According to a report that was commissioned by the Texas Forest Country Partnership, the facility, directly and indirectly, pumped some $212 million into the county economy in 2022.

Casino Generates 800+ Permanent Jobs

TXP Inc. of Austin, the economic analysis firm that conducted the study reports that the operation is responsible for more than 800 permanent jobs, half of them at the casino, and a total payroll of $22.5 million a year collectively.

“This economic impact and these jobs would simply not exist without Naskila. Because 95 percent of Naskila’s customers come from outside of Polk County, and more than 80 percent come from outside the region, Naskila is an economic engine that benefits every stakeholder in the region,” the study stated.

According to a report in Blue Bonnet News, the Winter 2023 TXP study was the third one the Texas Forest Country Partnership had commissioned on the casino’s economic impact. The venue opened as a 15,000 sq ft slot parlor in 2016 and has had to fight until fairly recently to defend its operation as legal under the 1988 Indian Gaming Regulatory Act.

Last summer the United States Supreme Court finally put overzealous Texas prosecutors to rest over the issue when the Court confirmed the gaming center’s standing.

Steady Increase in Economic Value

The first study, done in 2018 showed an economic impact of $140 million increasing to $170m in 2020 and continuing to grow to the current $212m arrived at in the current report found here, courtesy of the Liberty County news outlet. Overall direct and indirect jobs have grown from 550 to 700 and finally to 825 found today with nearly half of them part of the casino operation itself.

Chairman of the Alabama-Coushatta Tribe of Texas Tribal Council, Ricky Sylestine commented on the study and its findings: “We are grateful that our guests, our employees, and our neighbors in Deep East Texas have allowed the impact of Naskila Casino to continue to grow,” he said. “This facility helps sustain our Tribe and our region.”

The average salary and benefits for a Naskila employee are $50,000 according to the report. The impact includes a variety of quality-of-life improvements for those who are employed directly or not in the area with funding for scholarships and additional housing on the Reservation as well as a retail center, health care clinic, and a daycare center.

“The growth of Naskila’s success is very good for Polk County,” said Polk County Judge Sydney Murphy. “Naskila draws visitors into our region and provides stable income and benefits for its employees. We know that Naskila will continue to play an important role in our county’s future.”

Source: Study finds Naskila Casino injects $212 million into local economy, Bluebonnet News, March 13, 2023

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