8 February, 2017
On 24 January 2017, the Government issued Decree No. 06/2017/ND-CP, which for the first time legalizes international soccer betting in addition to horse racing betting and greyhound racing betting (Betting Decree).
Some key features:
- Betting business is treated as a conditional business sector the satisfaction of which is evidenced by a certificate of satisfaction of betting business conditions (Betting Business License).
- An entity can only do horse racing betting, greyhound racing betting once they have received an investment registration certificate (which, for a foreign invested company also serves as a certificate of incorporation) and a certificate for satisfaction of business conditions. The investment registration certificate will only be granted for horse racing betting projects with minimum investment capital of VND1,000 billion (~USD459 million). For greyhound betting projects, the minimum investment capital is VND300 billion (~USD137 million).
- Investment registration certificate will only be granted to 01 (one) international soccer betting pilot project with minimum investment capital of VND1,000 billion (~USD459 million). The international soccer betting pilot entity will operate within 5 years from the issuance of the Betting Business License.
- The Ministry of Finance will grant the Betting Business License to entities with adequate financial resources, business plans and an appropriate betting and racing bylaws.
- Enterprises doing horse racing and greyhound racing business must be in the form of a limited liability company or a joint stock company.
- A Betting Business License’s term is maximum 10 years for horse and greyhound racing betting business and 5 years for international soccer betting business from its issuance date but still within the lifespan of the Investment Registration Certificate.
- The maximum bet is VND1 million (~USD50) a day and the minimum bet is VND10,000 (~US 50 cents). These limits could be adjusted for each period.
- Players must be 21 years old and over and not being objected in writing by parents, spouses, biological children and/or themselves to bet.
- There should be no more than three horse/ greyhound races in a week at each location.
- The minimum rebate shall be 65% of the revenues from selling wagering tickets.
- Wagering tickets will be distributed via terminal equipment and telephone (fixed and mobile ones), excluding via Internet or internet-based applications on telephone. However, distribution of wagering tickets via telephone will only be implemented 01 (one) year after implementing the terminal equipment distribution method. In order to bet via telephone, players must have a registered account with the betting business entity. Payment of rebate must be via the players’ registered account and the bank account of the betting business entity opened at a lawful credit institution in Vietnam.
- The Betting Decree will take effect from 31st March 2017
For further information, please contact:
Oliver Massmann, Partner, Duane Morris
omassmann@duanemorris.com
