Vietnam Business Law

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New restrictive rules on casino gambling machines

Like many Asian countries, to attract tourists, Vietnam has allowed investment in casinos and casino gambling machines. However, the new rules on casino gambling machines under Decree 86/2013 issued in July 2013 seem to be more restrictive. Under Decree 86/2013, which will take effect from 1 October 2013:

  • A lodging business (e.g. hotel or resort) must have a 5-star rating by the General Department of Tourist in order to have a licence to operate casino gambling machines (gaming licence). Previously, the threshold is 4-star in Hanoi and Ho Chi Minh City and three stars elsewhere;
  • The number of gambling machines that can be installed now depends on the number of hotel rooms. For every five hotel rooms, the owner can install one gambling machine. Previously, a 5-star hotel can have up to 100 gambling machines regardless of the number of hotel rooms;
  • A separate gaming licence valid for 10 years is required for casino gambling machines. A gaming licence can only be issued after the hotel or resorts have been put into operation. Therefore, an investor may have to take risk that its gaming room(s) may be left vacant until the gaming licence is issued;
  • The owner of the hotel or resort may hire a management company to management the gaming business. However, the management fee must not exceed a cap to be provided by the Ministry of Finance (MOF);
  • The gambling machines must be brand new, be examined and certified by independent surveyor and satisfy the technical standards to be published by the MOF. The owner must keep records of all gambling machines; and
  • Gambling rules must be prepared and sent to the MOF and other local authorities for monitoring. Gambling rules must also be displayed in the gaming rooms. 
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