The Socialist Republic of Vietnam is located in the eastern part of the Indochinese Peninsula and covers 311,700 square kilometers. The country attracts foreign visitors with its rich history, unique cuisine, bustling cities, and magnificent pagodas. Gambling is another form of entertainment available here, as the local government has gradually warmed to these activities.
All forms of betting were prohibited during the communist regime because the government considered them a capitalist pursuit. Vietnamese authorities have slowly loosened the restrictions and recently legalized certain betting activities in an effort to tackle unlawful gambling. Nonetheless, the legal climate in the country remains harsh.
Vietnam has legal lotteries, but these are subject to a government monopoly. Wagering on horse and greyhound races is also possible on state-owned racetracks such as those in the capital, Hanoi, and Ho Chi Minh City (better known as Saigon). Land-based casino gaming is legal as well, with Ho Chi Minh City hosting the largest number of gambling facilities.
However, these venues are mostly open primarily to visitors holding foreign passports. Vietnamese law initially prohibited locals from entering the gaming premises altogether. The authorities later changed their stance as part of a three-year experiment, permitting the entry of locals but only under certain conditions.
In 2018, the national legislature approved a new bill that legalized sports wagering under the government’s regulatory oversight. Online gambling remains illegal at the time of publication, and it appears it will stay that way for the foreseeable future. If you are interested in learning more about gambling regulation in Vietnam, stay with SuperCasinoSites as we explore the laws that govern betting in the country.
Laws That Govern Casino Gambling in Vietnam
Land-based casino gambling used to be available only to foreign passport holders until the passage of Decree Nº 03/2017/ND-CP in January 2017. Under this legislation, Vietnamese nationals can enter casino gaming facilities and gamble, provided they meet certain criteria. The Decree states that operators can host casino games as long as they obtain the necessary licenses from the competent local authorities.
Requirements on Gaming Machines and Tables
Requirements for Casino Entrance
Rights and Obligations of Casino Patrons under Decree Nº 03/2017/ND-CP
Requirements for Obtaining a Casino LicenseGambling Advertising and AML Policies in Vietnam
Only businesses that hold casino and betting eligibility certificates can legally advertise their products and services in Vietnam. All marketing content released by gambling companies must comply with the country’s laws on advertising. The ads must contain the name of the gambling enterprise and specify who is eligible to engage in the casino games under the provisions of Article 11 and Article 12 of Decree Nº 03.
Furthermore, the law restricts marketing activities to signboards and panels located on the gaming floor. The advertising content should not be visible or audible to individuals who are not on the premises. Certified casino operators may also advertise their services during entertainment programs on international flights as well as at international airports.
Certified sports wagering businesses can advertise only at racetracks and designated booths for betting ticket sales. In 2021, the Vietnamese government passed Decree Nº 70/2021/ND-CP to enforce greater control over cross-border advertising via platforms like Facebook and Google Play. These platforms are expected to remove any content that violates the new decree, including pages and ads that promote online gambling.
Certified casino operators must adopt and implement adequate measures to prevent illegal financial transactions in line with Law Nº 07/2012/HQ13 on money laundering prevention. They should cooperate with the State Bank of Vietnam and the Vietnamese Ministry of Finance, reporting all suspicious money transfers to the authorities.
Sanctions for Violation of Vietnam’s Gambling Laws
Vietnamese authorities impose various sanctions on business entities and individuals who violate the country’s gambling laws. Casino operators who contravene local legislation and regulations face pecuniary sanctions in the form of administrative fines ranging from ₫100 million to ₫200 million. Repeated violations might result in the suspension of their casino eligibility certificates.
Those who counterfeit or falsify documents when applying for a certificate incur fines of ₫20 million to ₫50 million. Businesses that operate with falsified certificates face pecuniary penalties of ₫40 million to ₫60 million when caught. Transferring or leasing a certificate carries higher fines of up to ₫150 million.
Licensees might also have their certificates suspended for three to twelve months, depending on the severity of the contravention. Fines for casino businesses that operate without valid certificates altogether can reach ₫200 million.
Entities that operate more gaming machines and tables than the number prescribed in their certificates are subject to penalties of up to ₫200 million. The same applies to businesses that allow Vietnamese nationals to enter their gaming premises without meeting the entry criteria outlined in Decree Nº 03/2017/ND-CP.
Online Gambling in Vietnam
Vietnam has started to liberalize its gambling laws in recent years but has yet to legalize online gambling. However, this has not prevented offshore operators with foreign licenses from accepting Vietnamese registrations. Some foreign websites cater to local customers with a Vietnamese-language interface and payments in the local currency, VND.
The overly restrictive sports betting legislation causes many Vietnamese bettors to join foreign online sportsbooks that offer a greater variety of markets and events. The illegal sports wagering industry in Vietnam has grown tremendously as a result of these restrictions. Estimates suggest locals wager US$10 million each year on soccer games alone.
The country’s government combats illegal wagering by blocking the domains of offshore operators that target Vietnamese customers. One example of this practice occurred in 2012 when the authorities ordered local Internet service providers to block more than 180 gambling domains just before the start of Euro 2012.
Some locals try to circumvent the restrictions by masking their IP addresses through virtual private networks (VPNs). Nonetheless, this approach rarely works because many offshore-licensed gambling operators prohibit the use of VPNs. Even if a Vietnamese customer manages to hide their real location, they must still verify their identity and residence before they can withdraw winnings.
Conclusion
Vietnamese authorities have recently relaxed their stance on gambling, but the country is still light years away from having a developed and thriving industry. The biggest hurdle is the lack of interest from gambling operators. Many remain reluctant to start a legal business in Vietnam because of the overly complex bidding process for certificates and the high minimum capital requirements.
The restrictions on casino entry and the limited sports betting markets do little to improve the situation. As a result, locals who wish to gamble resort to overseas online operators, causing an outflow of taxable money from the country (and violating Vietnamese law in the process). While it is impossible to deny that Vietnam has made some progress in recent years, the government must further relax its stance if the local gambling industry is to flourish.