Vietnamese casinos beat betting parlors for foreigners: Zing

Business results of a company operating major casinos in Vietnam show that most of the betting houses for foreigners are losing revenues. A few parlors reported with profits but the amounts are falling.

Meanwhile, after some first months of operations, Corona Phu Quoc, the first casino accepting Vietnamese gamblers, reported outstanding business results.

Phu Quoc Investment and Tourism Company, the owner of Corona casino, is expanding its business. During the first half of this year, the company inaugurated a casino, a cinema and a restaurant. Casinos have become core business of the company, which contributes the majority of its revenue and profit.

Photo: Casinoonphuquoc

Getting high profit from Vietnamese gamblers

During January-June period, Corona Phu Quoc earned $26.2 million in revenue, accounting for more than 53% of the total consolidated revenue. Casino is also the only profitable segment of the company in recent years, with a gross profit of over $13.3 million.

Being the only casino in Ha Long City, Royal casino is facing losses.

In 2018, this company collected $12.4 million revenue and nearly 62% of the amount was from casino. Revenue from this casino helped the betting house’s parent company having after-tax profit of $736,660 after two years of losses.

However, bright results did repeat in 2019. In the first half of this year, the company collected only $3.4 million revenue, down more than 40% year on year. The contribution from casino was only $823,000.

The company reported after-tax losses of $3.37 million, contributing accumulated losses of $10 million as of June 2019.

Photo: Vietnamfinance.vn

Do Son Casino, the first casino operating in Vietnam since 1995, faces the same situation.

Operating in Vietnam for 18 years from 1995 to 2012, the gambling parlor reported losses. It began suffering losses in 2005 with more than $2 million. Between 2008-2012, this casino accumulated losses of over $7.3 million.

Policy change related to Chinese tourists and competition with other casinos such as Royal casino, Loi Lai casino was among causes of the losses.

Aristo casino, the most efficient casino in Vietnam with hundreds of billions Vietnam dong of profit per year, has business going down.

According to Donaco Group, the owner of this casino, business has decreased significantly recently. In the fiscal year of 2019, gaming revenue decreased by 15% to $85.3 million.

During the first half of 2019, revenue Aristo casino submitted to the group $14.7 million, down 17%.

In Hanoi, the casino in the 4-star Movenpick Hotel allowing foreigners to play also works inefficiently.

Report from Roxy Vietnam Joint Stock Company, the owner of Movenpick, says that this casino is making a cumulative loss of nearly $8.9 million.

Source: Zing