In 2014, the Ministry of Finance released a new draft Government decree on casino business, which permits Vietnamese citizens who are 21 years old or older to enter casinos in the country. Investors in the tourism and hospitality have considered it an opportunity to invest in integrated resorts with casinos in Vietnam. Habinger Capital Partners, a New York based hedge fund, is the main investor of The Grand Ho Tram Strip, the first world-class resort complex with casino service in Vietnam. Philip Falcone, founder and CEO of the Harbinger Capital Partners, said Ho Tram is ready to pilot the local gaming policy.

The Government is working on a draft decree on casino business, but there has been concern on adverse impacts of opening up casinos to Vietnamese. Could you share experience with the Government to address this issue?

Philip Falcone: We have to look at this issue from different angles. Many studies and reports have indicated that the economic impact of this activity is significant and that the social impacts are manageable in a regulated environment.

Gambling exists illegally in Vietnam.  People still gamble, whether we like or not. Therefore, we would better off to legalize it so that we can ultimately control it with a proper legal framework.

What can Ho Tram offer to assist the Government of Vietnam in developing a legal framework for casino business?

First, we have developed our casino in a responsible gaming format. This motto has always been in our mind during the project development. Our management team includes key-licensed managers who have tremendous amount of experience in gaming jurisdictions around the world. Therefore, their expertise will help Ho Tram become a responsible casino.

As Ho Tram is one of the first luxury casino resort complex, the fact that we are operating with an experienced team is an opportunity for the Government to utilize our facility as a model where certain strategies can be tested to make sure that the framework works, or a ground for the Government and our management team to exchange experience.

The standard that we currently operate at the facility on June 21 is all under the regulated international standards. With our experience in other markets and our management team, we believe that besides building a legal framework, the investors and operators of the casino shall also work with the Government in management of casino through internal regulations such as training programs for staff and managing problem gamers, etc..

I think it is important to have a clear legal framework to manage the casino. This will help not only reduce the number of Vietnamese gambling overseas but also facilitate local citizens to game in their home country.

The best way to control the social impacts is to offer a regulated and controlled environment in Vietnam. Clear regulations on gaming are critical for Vietnam over the long term.

Is Ho Tram ready to welcome Vietnamese gamers if the draft is passed?

We are absolutely ready. We have employed 1,600 staff and we have developed a wonderful facility that we hope Vietnamese gamers will enjoy it one day. We are now welcoming many foreign tourists and we hope that in the near future, the Vietnamese can enjoy their time at the casino as well. Yes, we are 100% ready to welcome Vietnamese gamers.

You have mentioned “responsible gaming”. If Vietnam allows local gamers, is “responsible gaming” feasible in Vietnam?

The term “responsible gaming” has been used in many countries and I think it is absolutely feasible in Vietnam because it is simply the collaboration between authorries and casino operators. For example, the Government can develop the regulation to select gamblers by applying casino entry fee to prevent low-income players from spending money that they should not. On the other hand, the casino must apply internal rules to control the gamers such as registration of the problem gamers and provide information to their families. Casino operators have responsibility to train their staff to detect problem gamblers.

Once Vietnam has had a legal framework for casino business, what do you think about competition in this industry?

In my opinion, competition is always good because it improves the product or service quality.

I think Vietnam can absolutely compete with other countries in Southeast Asia just because Vietnam is a wonderful tourist destination, which has attracted me to the country to invest. Therefore, I think, with a clear legal framework, casino business in Vietnam will be able to compete in the region.

Look at Macau. I think it has nothing to offer, but casino. Our project is different. You don’t have to be a gamer to come here and enjoy the facility we provide. Our objective is to build not only a casino but also an attractive destination for local and international visitors.