Vietnam An Ideal Gambling Destination For VIP Gamblers And Junkets?
Summary
- Macau’s VIP gambling market collapse has opened the door for other Asian countries
- Gambling experts claim that Vietnam could be the next VIP gambling destination
- Vietnam’s low gambling tax rates and lack of bureaucracy are two main reasons
Macau gained the reputation of being the biggest gambling hub in the world and at one point doing more than 4X of what Las Vegas casinos did in terms of gross gaming revenue (GGR).
The main reason why Macau casinos were doing so well was due to the VIP gambling sector which account for over 50 percent of GGR.
Macau’s VIP Gambling Sector Collapse, Opens New Doors
Over the last few years, Macau’s government has cracked down on the VIP gamblers and junket operators who were responsible for bringing over VIP gamblers mainly from Mainland China. The continuous crackdown on both junket operators and VIP gamblers in Macau has castrated the VIP gambling sector which is almost non-existent today.
Macau’s casinos have been instructed to focus on non-gaming activities and mass market play. As a result, the VIP gambling sector has disappeared for the moment with both junket operators and VIP gamblers looking to find a new home.
A number of Asian countries have tried to capitalize on Macau’s VIP gambling sector collapse by welcoming VIP gamblers. South Korea, Cambodia, Philippines and Saipan which is the biggest island in the Northern Mariana Islands have looked to bring in VIP gamblers and have succeeded to some extent in recent times.
Gaming Experts Say Vietnam Could Be Next VIP Hub
IGamiX Management & Consulting Ltd. and Bizconsult, two firms that specialise in the gambling market say that Vietnam has great potential to become the next VIP gambling hub. The main reason why Vietnam could outshine the lines of Cambodia, South Korea and the Philippines is because its laws are more welcoming of VIP gamblers and junket operators.
Macau imposes a 40 percent tax on gaming operators which is extremely high. Vietnam at the moment currently imposes only a 15 percent tax on gaming operators. While Macau has made it difficult for junket operators to function, Vietnam has less bureaucracy and is open to doing business with junket operators who are known as International Tour Operators (ITOs) in Vietnam.
Vietnam is also more flexible in granting visas to overseas workers such as Chinese workers who will be required to serve VIP gamblers from Mainland China. We will have to wait for a couple of years to see if Vietnam becomes the next VIP gambling hub or if Macau bounces back!
David WalkerAuthor
David is our resident 'down under' contributor, letting us know what is going on in the southern hemisphere, he is also keen blackjack player
