until

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.

The post Vietnam Extends Casino Trial for Local Players Until End of 2024 Amid Mixed Financial Results appeared first on Casino News Daily.

Brazil’s Senate Delays Gambling Bill Vote Until After Elections

Brazil-casinos-and-gaming-Senate-vote-could-be-delayed-until-October The push to legalize gambling in Brazil faces another delay as Senate President Rodrigo Pacheco (PSD-MG) signals he is in no rush to bring the bill to the plenary. The legislation, which seeks to legalize casinos, bingo, jogo de bicho, and betting on horseracing, will likely be postponed until after the first round of municipal elections in October.

Prioritizing State Debt and Tax Relief

Allies of Pacheco have confirmed that his immediate priorities are the renegotiation of state debts and compensation for payroll tax relief. These issues were highlighted as top priorities by President Luiz Inácio Lula da Silva (PT) during a recent meeting with the senator. Consequently, the gambling bill, already approved by the Chamber of Deputies, will take a backseat until these fiscal matters are addressed.

The delay is also influenced by significant pressure from the evangelical bench, which has prepared studies to dissuade senators from supporting the legalization of gambling. The evangelical group argues that gambling could increase addiction rates in the country and raise moral concerns. Additionally, the Ministry of Justice has expressed fears that the measure could facilitate money laundering activities.

Despite these concerns, President Lula has shown a favorable stance towards the bill, indicating his readiness to sanction it if passed by the Senate. The bill is supported by both the economic team and the political wing, with long-term projections suggesting that the legalization of gambling could generate up to R$22 billion in revenue for the federal government.

Upcoming Thematic Debate

A thematic debate on the gambling bill is scheduled for Thursday, August 8, chaired by Senator Irajá Abreu. This session aims to address remaining points of contention, including the strengthening of measures to prevent organized crime and money laundering. If the debate results in a decision to proceed, the bill could be voted on the following week. Otherwise, the vote will be deferred to after the municipal elections on October 6.

This delay occurs as Brazil progresses towards launching its regulated sports betting and iGaming market, expected to commence on January 1, 2025. The Ministry of Finance’s Secretariat of Prizes and Bets (SPA) has published final regulations clarifying which online games will be allowed and detailing monitoring, inspection, state allocations, responsible gambling, and sanctions.

While some see the postponement of the gambling bill vote as a setback, it underscores Brazil’s legislative bodies’ cautious approach to balancing economic benefits with social responsibility.

Sources:

“Pacheco não tem pressa para pautar PL dos jogos de azar.”, cnnbrasil.com.br, August 7, 2024.

The post Brazil’s Senate Delays Gambling Bill Vote Until After Elections appeared first on Casino News Daily.