Cambodia’s many border casinos could find themselves the unlucky losers after Vietnam published its new decree on Friday – officially lifted its ban on locals gambling.
The decree, which comes into effect on 15 March, will mark the beginning of a three-year trial allowing locals to enter two newly built casinos in Phu Quoc and Van Don, subject to certain restrictions. The decree also leaves the door ajar for larger properties such as Ho Tram to apply for inclusion.
But while it is good news for Vietnam, it’s bad news for Cambodia’s border casinos which have long provided been a destination for Vietnamese players.
Union Gaming analyst Grant Govertsen believes a number of these properties could be forced to shut down during the course of Vietnam’s three-year trial.
“While we do not expect a material impact to Naga as a result of locals gaming in Vietnam, we do expect the border casinos in cities like Bavet, Cambodia to bear the brunt of the downside as the border casinos are significantly easier to reach than Naga and have historically captured the lion’s share of Vietnamese customers,” he said.
“We would expect many to struggle to survive over the duration of the three-year Vietnam locals pilot program.”
Lim Kim Seng, Chairman of Lucky89 Group which operates two casinos in Bavet – warned last year that the decree threatened the long-term health of his operations.
“We have been worried about this law for a long time and we hope that the Vietnam government won’t let its [citizens gamble on home soil], as this would dramatically affect our business,” he told The Phnom Penh Post at the time.
“The vast majority of our players and revenue come from Vietnam and if they continue to stop coming to Bavet the sector will face a lot of challenges to remain profitable. It’s already not easy for Cambodian casinos here.”
