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INDOCHINA 29

FOREIGNER-ONLY GGR Aristo International Y16 net gaming revenue RM58.7m Non-gaming revenue RMB48.1m

+16.2%

+31.4%

VIP table game turnover RMB8.32b

-23%

GGR table games RMB228.4m

-5%

GGR slots RMB9.4m VIP win

-16% +2.2%

PARI-MUTUEL BETTING HANDLE Y1 AFTER LIBERALIZATION $90m - $180m Y2 HANDLE $377m to $685m Y3 HANDLE $680m to $1.1b (Source: Union Gaming)

hopeful that the government will allow local Vietnamese to enter its premises. The recent decision by the ruling party has put an end to this hope, at least for the next three years. Phu Quoc support In June 2013, the Party’s Politburo formally expressed their support for the Van Don Special Economic Zone and its integrated resort, and in October 2014, it agreed to allow Phu Quoc Island to build an integrated resort and a second special economic zone. The Party also commissioned a study to allow local Vietnamese to enter casinos in these two zones. I have written a number of reports and position papers to support the Party’s decision and most of my recommendations were accepted and reflected in the recent decision. As to why Ho Tram was not mentioned in the decision or approved to receive local Vietnamese, I believe there are a number of reasons. From what I was told, since its opening day, Ho Tram was not authorized

to receive local Vietnamese. There is no change in the party’s position on this matter. In addition, the government has made some concessions granting Ho Tram the gaming license even though ACDL has not reached the investment level required by the initial investment license. To many people, the ball is in Ho Tram’s court. Ho Tram needs to realize its full investment before attempting to attain new ground. Investor draw Since Van Don is near the China border in the North and Phu Quoc is close to Thailand and Cambodian borders in the South, having local Vietnamese in these two locations will definitely help attract much needed foreign investment to these areas which bear some resemblance to rural Macau in the past, and will help expedite the creation of the two special economic zones. I believe, under this new decision, local Vietnamese will not be allowed to enter Ho Tram, at least for the next few years.

G.O. Max ups proposed race track investment South Korean investor, G.O.Max I&D Company is pursuing a project to build a horse racetrack in northern Vinh Phuc province in Vietnam. Mr. Bui Minh Hong, Chief of the Secretariat at the Vinh Phuc Provincial People’s Committee said the investor has applied to increase its investment capital from $570 million to $1.5 billion and received a positive reception.

Ho Tram to get airport access Ba Ria-Vung Tau province has agreed in principle to allow the Ho Tram Project Co Ltd to construct a small airport to be used exclusively for the integrated resort complex. The proposed airport would cover 200 hectares in Dat Do District under the build-operate-transfer model. While the airport will be used to carry tourists from other domestic airports to Ho Tram Strip, the provincial government will consider expanding the airport for tourism and economic development in the long term, local media reported.

Asia Gaming Briefings | November 2016


AGBriefings November 2016