VI Casino business operations in Vietnam are not only a high-end form of entertainment but also a unique investment sector, subject to extremely strict and rigorous legal regulations. To obtain an operating license, businesses must face robust legal “barriers,” from stringent requirements regarding charter capital and total disbursed investment capital reaching billions of USD, to conditions concerning infrastructure, security and order, and financial risk management capacity. Missing any link in the application process for a business license can lead to enormous economic losses for investors. To help readers and businesses clearly define the roadmap and the golden standards that need to be met in this potentially lucrative but challenging “smoke-free” industry, let’s explore the latest casino business requirements with Pham Consult.
- Regulations of Vietnamese Law on Casino Business
Casino business is a conditional business activity licensed by competent state management agencies to operate games of chance on electronic gaming machines and gaming tables to serve the entertainment needs of eligible players as stipulated in Decree 03/2017/ND-CP.
Casino business is a conditional business activity, subject to strict control by competent state management agencies to ensure compliance with the provisions of this Decree and relevant laws. Only enterprises granted a Certificate of Eligibility to operate a casino as stipulated in Decree 03/2017/ND-CP and enterprises specified in Clause 1, Article 62 of Decree 03/2017/ND-CP are permitted to operate casinos.
Casino business must be linked to the core business activities of enterprises to promote tourism and trade development, diversify forms of entertainment, enrich spiritual life, and attract tourists; it must ensure national security, defense, social order and safety, social morality, and public health. The organization and participation in games of chance must ensure transparency, objectivity, honesty, and protect the legitimate rights and interests of all participating parties. Organizations and individuals involved in organizing and participating in games of chance must fully comply with the provisions of Decree 03/2017/ND-CP and other relevant laws.
- Conditions for Casino Business
To operate a casino, a business must meet the conditions for obtaining a Certificate of Eligibility for Casino Business as stipulated in Article 24 of Decree 03/2017/ND-CP (amended and supplemented by Decree 151/2018/ND-CP), specifically as follows:
– Having been granted an Investment Registration Certificate or an Investment Policy Decision by a competent state management agency, which includes casino business activities;
– The business has completed the disbursement of at least 50% of the total investment capital of the project registered in the Investment Registration Certificate or Investment Policy Decision;
– Having an area for the casino business premises that meets all the conditions stipulated in Clause 2, Article 5 of Decree 03/2017/ND-CP;
– The casino business establishment must have a manager or operator with a minimum educational qualification of a university degree or higher, and at least one year of experience in managing casino business operations;
– It must have a business plan in accordance with Clause 6, Article 25 of Decree 03/2017/ND-CP, including the following contents: Information about the enterprise, information on the implementation status of the investment project, the requested duration for casino business permit, the projected number of gaming machines and tables, the types of games with prizes to be offered, an assessment of business efficiency, projected foreign currency revenue and expenditure, solutions to ensure security, order and social safety at the casino business establishment, and an implementation plan.
Note: Each investment project for a comprehensive service, tourism, and entertainment complex with a casino will only be considered for the issuance of one Certificate of Eligibility for Casino Business, and this Certificate of Eligibility for Casino Business will only be issued to the enterprise registered to carry out the investment project as stipulated in the Investment Registration Certificate or the Investment Policy Decision.
- Application dossier for a Certificate of Eligibility for Casino Business
The application dossier for a Certificate of Eligibility for Casino Business is stipulated in Article 25 of Decree 03/2017/ND-CP, and includes the following documents:
– Application for a Certificate of Eligibility for Casino Business.
– A certified copy of the Investment Registration Certificate or Investment Policy Decision, which includes casino business activities, and any amended Investment Registration Certificates or Investment Policy Decisions (if any) issued by competent state management agencies in accordance with the law on investment; or an uncertified copy accompanied by the original for verification.
– Documents proving that the enterprise has completed the disbursement of investment capital as stipulated in point b, clause 1, Article 24 of Decree 03/2017/ND-CP.
– A diagram showing the location of the casino business.
– Draft regulations on internal management, organization of the internal control department, internal regulations on anti-money laundering, dispute resolution regulations, and game rules.
– A casino business plan including the following contents: Information about the enterprise, information on the implementation status of the investment project, the requested duration for casino business permit application, projected number of gaming machines and tables, types of games with prizes to be offered, assessment of business efficiency, projected foreign currency revenue and expenditure, solutions to ensure security, order, and social safety at the casino business, and implementation plan.
– A list, criminal record certificate, certified copies of diplomas from competent state agencies proving the professional qualifications and expertise of the manager/operator of the casino business establishment, or uncertified copies accompanied by the originals for verification.
- Procedures for Issuing a Certificate of Eligibility for Casino Business
The enterprise submits one set of documents requesting a Certificate of Eligibility for Casino Business to the Ministry of Finance for verification of the completeness and validity of the documents. Within 15 days from the date of receipt of the documents, the Ministry of Finance will notify the enterprise of the completeness and validity of the documents and request the enterprise to supplement documents (if any) and submit six official sets of documents for assessment.
Within 15 days of receiving a complete and valid application, the Ministry of Finance shall send the application for comments to relevant agencies, including: the Ministry of Planning and Investment, the Ministry of Public Security, the Ministry of Culture, Sports and Tourism, the State Bank of Vietnam, and the People’s Committee of the province where the enterprise is applying to operate a casino;
Within 15 days of receiving the complete application for comments, the agencies consulted must provide written comments to the Ministry of Finance and be responsible for the content of the comments;
After receiving the comments from the aforementioned relevant ministries and agencies, the Ministry of Finance shall synthesize the comments and consider and decide whether or not to grant the Certificate of Eligibility for Casino Business.
Within 60 days of receiving a complete and valid application, the Ministry of Finance shall consider granting the Certificate of Eligibility for Casino Business. In the event of a refusal to grant a Certificate of Eligibility to operate a casino, the Ministry of Finance shall notify the enterprise in writing, clearly stating the reasons for the refusal.
