Vietnam’s authorities are currently considering the opportunity for the introduction of a bill that will allow country’s citizens to enter casino premises. Representatives of Donaco International Ltd., a popular Asian provider of various entertainment and accommodation options, stated that this could prove to be quite beneficial to local gambling facilities.
However, casinos that decide to allow access to Vietnamese citizens will most probably be imposed new types of taxes.
Australia-listed Donaco owns Aristo International, a hotel and casino facility, based in the province of Lao Cai in the northern part of Vietnam.
Currently, the Asian country has a population of almost 92.5 million people. There are several casinos within its territory, but Vietnamese are not permitted to enter their premises, unless they have foreign passports.
Joey Lim Keong Yew, managing director of Donaco, stated that they were optimistic about the proposed change and the effects that it might have upon gambling market, despite the potential increase in taxes.
According to reports from the past months, the draft will allow residents of Vietnam that are aged 21 or over to enter casinos. Moreover, they will also need to meet certain criteria. For example, their background and financial status will matter most.
As Donaco’s CEO stated, the latest proposal was for locals who have an APEC Business Travel Card to be given permission to go into Vietnam’s gambling venues. Generally speaking, APEC, else known as Asia-Pacific Economic Cooperation, is a forum of 21 states, located in the Asia-Pacific region, whose main goal is to encourage free trade and cooperation within the area.
In addition, Mr. Lim also shared that his company was yet another step closer to their desired expansion in Cambodia. He said that their ambitions to attain a major gaming and hotel business in the country are due to the fact that it is most likely to bring high profits, has a good position on the market there, and generates “strong cash flows.”
However, he did not specify how much this new acquisition will cost. He only stated that the price will be six times the earnings before interest, taxation, depreciation, and amortisation for this fiscal year, paid in the form of cash, debt, and equity for the seller.
Donaco’s primary goal is to diversify its operations and to expand its customer base through this purchase. It was announced that the new acquisition is not highly dependent on Chinese players’ visits.
Mr. Lim ensured that Donaco’s new business will not be affected in any possible way by the prospect of Vietnam’s citizens to be given access to local casinos.
According to recent reports, Vietnamese authorities are seriously considering the opportunity to scrap the personal tax on casino winnings. But in order for the loss – which was estimated to amount to US$9.52 million per year – to be offset, a 5% rise in the so-called consumption tax is expected to be introduced.
