The Vietnamese casino operator Royal International has reported that it will record a loss for the fourth year in a row.
Vietnam.- Royal International Corporation (RIC), the largest casino operator in Vietnam’s northern town of Ha Long, has reported that it expects to record a loss of US$1.6m this year, up from US$4.4m last year. However, the company expects revenue to rise 93 per cent to more than US$6.3m.
RIC said the Covid-19 pandemic will continue to affect the business but that it plans to attract more domestic and foreign players while cutting costs. The casino operator also revealed that it will develop two new five-star hotel projects this year. In February, the board approved a loan of US$8.75m from HDBank over 36 months to finance its projects.
Since 2016, RIC has only been profitable in 2018. According to the company, this was because more casinos were built in Cambodia, the Philippines and Myanmar, which reduced the number of players in Vietnam.
RIC’s casino revenue fell 58 per cent from 2020 to US$1.2m last year, while only 30 per cent of its villas and 12 per cent of its hotel rooms were occupied.
Vietnam may allow locals to gamble at two planned casinos
The Ministry of Finance has proposed expanding the scheme that allows qualifying Vietnamese citizens to gamble to cover two future casinos. Currently, under a scheme that last year was extended by the Ministry of Finance until 2024, locals may only gamble at two existing casinos in the country.
Vietnamese citizens are only permitted to enter one casino on the southern island of Phu Quoc and one in Van Don, in the northern province of Quang Ninh. However the ministry has now suggested that the planned casinos in Da Nang and on Nha Trang City’s Hon Tre island be added to the scheme.
Vietnam’s Ministry of Finance had previously said these two projects could potentially foster tourism growth.