Sports betting could flourish in Vietnam, but legal changes needed
Vietnam’s burgeoning sports betting market holds remarkable potential, yet a significant portion of its revenues currently flows to international operators. Experts agree that this landscape could transform with the right regulatory changes to a 2017 decree.
On November 28, an expert seminar hosted by The Investor in collaboration with the Vietnam Association of Foreign Invested Enterprises (VAFIE) underscored the vast opportunities awaiting the nation’s sports betting industry, given more favorable regulations.
Decree 6: Review and Reform Needed
Discussions at the seminar prominently featured Decree 6, enacted in Vietnam in 2017. This legislation ostensibly created a framework for legal betting on horse and greyhound races, as well as international football matches. However, attendees criticized the decree for being vague, overly restrictive, and outdated.
The current regulations limit legal gambling to just 20 pilot jurisdictions across Vietnam and impose a cap on wagers of VND 1 million (approximately £33.20/€40/$42). For operators, the requirements are particularly stringent, necessitating a minimum capital of VND 1 trillion for horse racing and football bets and VND 300 billion for greyhound racing. Additionally, the decree stipulates that 5% of revenue must be allocated to the state, while industry professionals argue this should instead pertain to 5% of profits.
Perhaps the most significant limitation in today’s digital environment is the decree’s prohibition of mobile and online betting—it primarily allows for paper and telephonic wagers. “Vietnam must embrace digital innovations,” stressed Nguyen Ngoc My, chairman of Vabis Group, emphasizing that igaming represents an “inevitable and irreversible strategic trend.”
Potential Regulatory Revisions in 2025
According to Hoang Ngoc Nhat, chairman of Thien Phuc Joint Stock Company, Vietnamese gamblers are expected to spend up to $10 billion annually, predominantly on football. Alarmingly, most of this revenue is siphoned off to foreign operators. Nhat advocates for regulations that are both business-friendly and conducive to keeping this taxable wealth within the country.
VAFIE chairman Nguyen Mai characterized the current state of sports betting as “regulated yet lacking the government’s proactive management.” However, this situation may be on the cusp of change.
The Investor reported that the National Assembly Standing Committee has set 2025 as a target for the Vietnamese government and the Ministry of Finance to review and amend the decree. Recommendations discussed at the seminar are to be presented to the ministry with the aim of fostering industry growth.
Economist Can Van Luc posited that the demand for sports betting transcends regulation, presenting a critical cultural, recreational, and tourism opportunity. “The government should position itself to capture these benefits,” he remarked, underscoring the potential for a reformed regulatory framework to benefit the national economy significantly.
This evolving discussion around sports betting in Vietnam indicates a pivotal moment for the industry. Regulatory changes, when enacted, could not only retain billions in local revenue but also transform Vietnam into a competitive player in the global gaming market.
