Vietnam is sending clearer policy signals toward a controlled expansion of regulated gaming, with early indicators from its local play pilot pointing to improved visitation and market sentiment. However, industry insiders say meaningful domestic demand has yet to fully emerge, highlighting a gap between regulatory intent and on-the-ground market traction.

Since the launch of the local player pilot in November, the initial impact has been most visible in visitation trends rather than revenue transformation. Tim Nguyen, Director of Fortuna Investments, told AGB that the pilot program’s significance lies less in immediate financial returns and more in its policy implications.

“It’s still early, but the pilot appears encouraging in terms of visitation and overall market sentiment,” Nguyen said. “The biggest impact so far is not just the direct gaming revenue, but the signal that Vietnam is willing to test a controlled domestic participation model under strict regulation.”

That controlled approach is also reflected in broader regulatory developments beyond the casino floor. Under a draft decree intended to replace Decree 06 (2017), Vietnam’s Ministry of Finance has proposed requiring full identity disclosure for individuals placing bets on football, horse racing, and dog racing. Bettors would be required to provide detailed personal information, including name, nationality, occupation, contact details, and residence, in line with the country’s 2022 Law on Anti-Money Laundering.

The draft also raises the daily betting cap for international football to VND10 million ($380), up from the previous limit of VND1 million ($38). However, authorities have rejected proposals to increase the cap further, signaling a cautious approach that balances higher thresholds with tighter controls.

The Finance Ministry said the revised cap reflects income growth while aiming to prevent excessive gambling that could affect public order, reinforcing a policy stance that prioritizes control over rapid market expansion.

Nguyen said such measures underline the government’s cautious positioning. “This signals that the government wants gaming to remain tightly regulated and fully traceable,” he told AGB, adding that the combination of identity requirements and betting limits demonstrates a continued focus on risk management. He described Vietnam’s trajectory as “cautious progress rather than full liberalization”, with authorities exploring regulated gaming “in a controlled and incremental way within a conservative policy framework”.

Visitation rises, demand constraints persist

At the operational level, the early benefits of the local play pilot have been concentrated in the mass segment. Nguyen noted that properties such as The Grand Ho Tram and Corona Resort & Casino have seen increased activity in slots and mass tables, driven by a broader domestic customer base.

“The most immediate impact is likely in the mass segment, particularly slots and mass tables,” he said. “Local customers typically broaden the visitation base and increase repeat visits, which also supports non-gaming spending across the resort.”

However, despite these initial gains, operators report that domestic demand remains limited. Scott Choi, head of external marketing at Lion Club, told AGB that the market has yet to show strong or sustained local participation following the policy shift.

“Although local access has recently been permitted at The Grand Ho Tram and Corona Resort, we have not yet seen clearly visible or strong domestic demand.”

Scott Choi

Several structural factors continue to constrain growth. One of the most immediate barriers is the income verification requirement, which limits spontaneous participation and narrows the eligible customer base. In addition, restrictions on direct casino advertising have kept public awareness relatively low, reducing the effectiveness of market expansion efforts.

Past experience also suggests that opening access alone may not be sufficient to generate demand. Choi pointed to earlier trials at Corona Resort in Phu Quoc, where local participation fell short of expectations due to high accommodation costs, limited room supply, and weak connectivity at the time. While infrastructure has improved, he said it remains uncertain whether demand will accelerate significantly in the near term.

Competition and limited local uptake

Competition from alternative channels further complicates the outlook. Domestic players have access to online gambling platforms as well as casinos in neighboring Cambodia, which can offer fewer restrictions and, in some cases, more attractive value propositions.

“It is also important to recognize that local players today have many alternative gambling options,” Choi said. “To compete effectively, domestic operators must offer compelling value propositions that can offset these alternatives.”

The divergence between policy direction and market response is also reflected in the industry’s revenue structure. While local participation has supported mass-market activity, high-value VIP players — historically a core revenue driver — continue to favor overseas destinations, where privacy, exclusivity, and higher betting limits are more readily available.

Choi said operators will need to carefully balance these segments as the market evolves. 

“For VIP players […] there must be private and exclusive service environments that match international standards,” he said, while noting that broader entertainment offerings will be necessary to attract mass domestic players.

For now, both industry insiders expect Vietnam’s gaming sector to develop gradually rather than rapidly. The government appears to be closely monitoring the pilot program outcomes before considering further policy adjustments, while maintaining a broader view of gaming as a supporting component of tourism rather than a standalone industry.

“Gaming in Vietnam is generally viewed as a supporting component of integrated tourism development,” Nguyen said. “Projects that strengthen tourism infrastructure and destination appeal are more likely to gain policy support.”