Inside Asian Gaming

42 INSIDE ASIAN GAMING | April 2014 REGIONAL BRIEFS Vietnam Eyes Casino Boom “At least 10 provinces” in Vietnam have applied for permission to host casinos in their jurisdictions. That’s the word from Minister of Planning and Investment Bui Quang Vinh, who told daily newspaper Thanh Nien his office has been deluged with requests since the Communist Party’s all- powerful Politburo indicated its support last year for rescinding a longstanding ban on casino gambling by the country’s citizens— albeit with conditions and on a trial basis with a view to supporting resort investment in a special economic zone in the province of Quang Hinh, which is close to China and the popular tourist destination of Halong Bay. Van Don, as the zone is known, is attracting interest from both domestic and foreign investors, highlighted by a recent visit from Las Vegas Sands Chairman Sheldon Adelson and a plan floated by a prominent Vietnamese businessman and developer, Dao Hong Tuyen, reportedly backed by American money, for building a multibillion-dollar mixed-use resort complex with a casino there. Farther south, the government also has a vested interest in the success of The Grand – Ho Tram, which opened last summer on the coast about 70 miles from Ho Chi Minh City at a cost of US$500 million. Developed with US and Canadian capital, it is the largest investment in resort development in Vietnam’s history, and it’s reported to be struggling in the absence of locals play. In the meantime, millions of Vietnamese evade the ban every year by crossing the border into Cambodia, resulting in a massive exodus of currency and tax revenues the government is anxious to recover. Judging from the success of casinos like NagaWorld in Phnom Penh the potential of the Vietnamese market could be vast if the ban is lifted, and the Politburo’s support for limited liberalization seems indicative of a country whose economy has not been performing well and critically needs investment, and casinos could provide a much needed lift. The National Assembly, where 90% of lawmakers are Communist Party members, is reported to be gearing up for a vote on loosening the ban as part of a comprehensive framework for regulating the industry. Japan Casino Bill Could Be Delayed Hopes have dimmed that Japan’s parliament will pass a casino authorization bill by summer after one of the lawmakers spearheading the effort said the measure has encountered unspecified procedural issues. Takeshi Iwaya, a member of the governing Liberal Democratic Party’s majority in the Diet, the lower house of the parliament, and one of the leaders of a powerful cross-party coalition backing the bill, said he did not know how long the bill might be delayed. He did, however, indicate that two casinos in outlying regions could be part of the initial roll-out once it passes, according to a report posted on InterGame Online . That would bring to four the number of casinos supporters and analysts currently believe will comprise the market, which will be dominated by two destination-scale resorts, one each in Tokyo and Osaka, capable of generating US$10 billion-$15 billion in combined revenues out of the gate, according to estimates. As many as 12 casinos could be developed over the next 10 years, according to research published by investment bank CLSA, which could push the market to upwards of $40 billion. The prospects have attracted an A-list of global operators, including Las Vegas Sands, Genting, MGM Resorts International, Wynn Resorts, Melco Crown Entertainment, SJM and Caesars Entertainment. The bill is not expected to require partnerships with Japanese companies, but Mr Iwaya said that ideally foreign operators would join forces with local businesses, noting that while Japan needs the foreign expertise, foreign operators might have trouble adapting to Japan’s particular characteristics. Goa: Floating Casinos Gone by 2015 The government of Goa says the Indian state’s offshore casinos will be evicted when their licenses expire at the end of 2015. Chief Minister Manohar Parrikar offered few details, according to news reports. Addressing the state Legislative Assembly, he said the holders of the five licenses, whose popular casinos ply the Mandovi River in the capital of Panaji, had been informed when their licenses were last renewed that their days on the river were numbered. “If they approach me, we can think about giving them a place somewhere,” he said. He said also that his governing Bharatiya Janata Party has no problem with the 10 or so casinos operating in tourist hotels in and around the capital. “Our opposition was only to offshore casinos, not onshore casinos. There is a difference,” he said. He did not elaborate. Mr Parrikar and the BJP have encountered criticism from community groups and opposition lawmakers for reneging on a campaign promise to shut down gambling on the Mandovi. During Legislative Assembly elections in 2012, the BJP had promised to “throw the casinos into the sea”. Mr Parrikar has since said the casinos would be relocated to deep water off the coast before his term in office ends in 2016. The Grand – Ho Tram Goa Chief Minister Manohar Parrikar