Inside Asian Gaming

inside asian gaming JUly 2015 24 Cover Story the government’s pace, not the investors’. “In comparison, the Ho Tram Strip is significantly closer to Ho Chi Minh City, the nation’s biggest population center, and is in a much better position regarding both existing and future infrastructure.” That also makes Ho Tram an excellent candidate for any local play initiative. Alterations to the blanket ban are expected in the government’s long-awaited Casino Decree. Slot clubs got their decree in 2013, codifying and clarifying their regulatory framework. The casino version has been awaited since. “We have seen considerable consistent momentum to completing a decree which would specifically regulate casinos and particularly provide a formal framework for large-scale integrated resort-style casinos,” Mr Pine says. “The government is serious in its efforts to put in place a regulatory and fiscal environment that makes sense and balances its objectives, which very much does include attracting quality investment.” Mr Pine thinks the decree could be issued this year and would likely provide “the first basis for consideration of local gaming to be allowed.” Officials claim the government annually loses $800 million in potential tax revenue needed to close budget deficits due to Vietnamese citizens’ play overseas, where social consequences of gaming are not addressed. Gaming “could be better controlled and regulated should the current laws be amended to allow locals access to international standard gaming facilities such as those we have at The Grand,” Mr Pine says. “The view around casino gaming has been evolving significantly at all levels of government,” he says regarding local play. “It is our view that the relevant government officials are very much focused on the question of ‘how?’ which strongly indicates it is now more a question of when than if.” On the when side, the Finance Ministry plans to submit the draft decree to Prime Minister Nguyen Van Tian in October, with potential approval this year, Morgan Stanley said in a recent report on global gaming. Others forecast the decree and any other major gaming regulation progress will be delayed until after next January’s Communist Party Congress, where new leadership is expected to be chosen. Changes at the top of Vietnam’s ruling elite could produce swift action on casinos, or set the stage for further delays. PICKING WINNERS How to allow local gaming remains an ideological and practical dilemma for Vietnam’s communist rulers. Conventional wisdom says the authorities are considering allowing players that meet a financial test to play at a single property on a trial basis. Financial requirements could include wealth or income minimums, or tax payment receipts. Suggestions have been made that the government might accept other documentation such as the APEC Travel Card, though the card doesn’t have an explicit financial component. In addition to or in place of the financial requirement, Vietnam could opt for a Singapore-style entry tax, likely at a lower rate than Singapore’s S$100 ($80). If Vietnam imposed a fee proportionate in terms of GDP per capita—Singapore at $64,584, Vietnam at $2,589, according to World Bank 2013 estimates in purchasing power terms—the levy would be a mere $3.20. Based on total national GDP, the equivalent fee would be $40. The government could also levy additional gaming taxes on casinos hosting local play. Deciding where locals can play will also be sensitive. If the Gaming “could be better controlled and regulated should the current laws be amended to allow locals access to international standard gaming facilities such as those we have at The Grand,” Mr Pine says. The Grand’s Shaun McCamley says: “It’s a very competitive market, high tax rates means it’s very difficult to be competitive when formulating incentive programs designed to attract foreign players.” The Grand Ho Tram President Shaun McCamley