Vietnam Signals Cautious Gaming Expansion as Domestic Demand Remains Elusive

Vietnam is increasingly signalling a policy shift toward the controlled expansion of its regulated gaming sector, with early signs from its local player pilot scheme pointing to improved visitation and a more positive market outlook.

Nevertheless, industry experts caution that meaningful domestic demand has yet to fully materialise, underscoring a disconnect between regulatory direction and actual market momentum.

Since the pilot allowing local participation was introduced in November, its most immediate effects have been reflected in increased visitor numbers rather than a significant uplift in revenues. According to Tim Nguyen, Director of Fortuna Investments, the true importance of the initiative lies more in its policy implications than its short-term financial performance.

“It’s still early, but the pilot appears encouraging in terms of visitation and overall market sentiment,” Nguyen said. “The biggest impact so far is not just the direct gaming revenue, but the signal that Vietnam is willing to test a controlled domestic participation model under strict regulation.”

This cautious stance is also evident in broader regulatory proposals beyond casino operations. Under a draft decree intended to replace Decree 06 (2017), the Ministry of Finance has proposed stricter identity requirements for individuals engaging in betting activities such as football, horse racing, and dog racing. Bettors would need to disclose comprehensive personal details, including their name, nationality, occupation, contact information, and residence, in line with the country’s 2022 anti-money laundering legislation.

At the same time, the draft regulation proposes increasing the daily betting cap for international football to VND10 million (approximately $380), up from the previous limit of VND1 million ($38). However, authorities have declined to approve higher limits, reinforcing a measured approach that seeks to balance expanded participation with tighter oversight.

Officials stated that the revised cap reflects rising income levels while aiming to curb excessive gambling that could disrupt public order, highlighting a policy framework that prioritises control over rapid liberalisation.

Nguyen emphasised that these developments reflect the government’s deliberate positioning. “This signals that the government wants gaming to remain tightly regulated and fully traceable,” he said, noting that the combination of identity disclosure and betting limits underscores a strong focus on risk management. He described the country’s direction as “cautious progress rather than full liberalization”, adding that authorities are exploring regulated gaming “in a controlled and incremental way within a conservative policy framework”.

At the operational level, the initial benefits of the pilot have largely been concentrated in the mass-market segment. Nguyen pointed to properties such as The Grand Ho Tram and Corona Resort & Casino, which have recorded increased activity in slot machines and mass gaming tables, driven by a broader domestic customer base.

“The most immediate impact is likely in the mass segment, particularly slots and mass tables,” he said. “Local customers typically broaden the visitation base and increase repeat visits, which also supports non-gaming spending across the resort.”

Despite these early gains, operators indicate that domestic demand remains relatively weak. Scott Choi, head of external marketing at Lion Club, noted that the market has yet to demonstrate sustained or substantial local engagement following the policy change.

“Although local access has recently been permitted at The Grand Ho Tram and Corona Resort, we have not yet seen clearly visible or strong domestic demand.”

Several structural challenges continue to limit growth. Chief among these is the income verification requirement, which restricts spontaneous participation and reduces the size of the eligible customer base. In addition, strict limitations on direct casino advertising have kept public awareness relatively low, hindering broader market development.

Past experiences reinforce these concerns. Choi referenced earlier pilot programmes at Corona Resort in Phu Quoc, where local participation failed to meet expectations due to high accommodation costs, limited room availability, and weak transport connectivity at the time.

While infrastructure has since improved, uncertainty remains over whether demand will increase meaningfully in the near future.

Competition from alternative gambling channels further complicates the landscape. Domestic players can access online platforms or travel to neighbouring markets such as Cambodia, where regulatory restrictions may be looser and offerings more attractive.

“It is also important to recognize that local players today have many alternative gambling options,” Choi said. “To compete effectively, domestic operators must offer compelling value propositions that can offset these alternatives.”

The gap between policy ambition and market response is also evident in revenue dynamics. While local participation has boosted activity in the mass segment, high-value VIP players—traditionally a key revenue source—continue to favour overseas destinations that offer greater privacy, exclusivity, and higher betting limits.

Choi stressed that operators must carefully balance these segments moving forward. “For VIP players […] there must be private and exclusive service environments that match international standards,” he said, adding that broader entertainment offerings will be essential to attract mass-market domestic customers.

For now, both Nguyen and Choi expect Vietnam’s gaming industry to evolve gradually rather than rapidly. Authorities appear to be closely monitoring the outcomes of the pilot programme before making further policy adjustments, while continuing to view gaming as a complementary element of the broader tourism strategy rather than a standalone economic pillar.

“Gaming in Vietnam is generally viewed as a supporting component of integrated tourism development,” Nguyen said. “Projects that strengthen tourism infrastructure and destination appeal are more likely to gain policy support.”

By fLEXI tEAM