Just a few years ago, large gaming centers were routinely filled to capacity every evening. Venues equipped with hundreds of high-performance computers were not only places to play games but also hosted Esports tournaments. That picture, however, has changed rapidly.

A survey of areas once regarded as gaming-center hubs, including Bach Khoa, Dong Da and Cau Giay, found that many internet cafes and gaming venues that previously operated around the clock are now shuttered.

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Many large gaming centers in Hanoi have closed. Photo: Duy Anh.

At Truong Dinh Plaza, 461 Truong Dinh Street in Hoang Mai District, Spartacus Gaming Center, once one of the largest gaming venues in southern Hanoi, has closed. Its third-floor premises now stand quiet, a stark contrast to the steady stream of gamers who once came and went.

At Vikings Gaming at 15 Doan Tran Nghiep Street, the shutters are down, with neither employees nor customers in sight. According to the company’s own information, Vikings Gaming once operated 15 locations, eight of them in Hanoi. Several of its other venues have also closed.

At 139 Cau Giay Street, a Gaming X branch that was once a familiar gathering place for gamers has also ceased operations.

The closures are not limited to major chains. Smaller internet cafes with 30-50 computers have also been shutting down, with owners liquidating PCs, monitors and components.

Under Vietnamese regulations, public electronic gaming services are a conditional business sector. Authorities have recently stepped up inspections and oversight of compliance with fire prevention and firefighting requirements, operating licenses, permitted service hours, and security and public-order conditions.

The move has tightened oversight of the gaming-center business and forced establishments that cannot meet the required conditions to temporarily suspend or permanently cease operations.

Since July 1, 2026, public electronic gaming service venues have been permitted to operate only between 8am and 10pm each day. Businesses that open or serve customers outside those hours can face fines of approximately $380-$570.

Market enters a difficult period

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After just a few years, Vietnam’s cyber gaming market has undergone a dramatic reversal. Photo: Duy Anh.

According to several gaming-center owners, the new regulations are only part of the problem. The industry is facing even greater pressure from increasingly expensive investment costs as customer numbers continue to decline.

Nguyen Xuan Duong, who has spent years in the gaming-center business, said the industry is now going through its most difficult period. In the past, owners could invest in a fleet of computers and recover their capital relatively quickly. Today, however, they face simultaneous pressure from rising costs, tighter regulation and changing customer demand.

Duong said revenue from hourly gaming fees is no longer the main source of profit. After electricity, internet, staff costs and equipment depreciation are deducted, little profit remains.

Overnight gamers, particularly at venues that previously operated 24 hours a day, once accounted for a substantial share of total revenue. With overnight customers gone, profits have fallen. Meanwhile, monthly rents remain at levels ranging from thousands of dollars, while owners must continually upgrade their computers to meet the requirements of new games.

Gamers’ habits have also changed significantly. The growing popularity of personal gaming PCs, high-speed internet and online connectivity platforms means many people can now play together from home. The rapid growth of mobile gaming has further reduced demand for traditional gaming centers, with many games now optimized for mobile devices.

Luu Duc Anh from Ninh Binh closed his gaming center late last year. He said many people assume that daily takings represent profit, when in reality much of the money effectively goes towards equipment depreciation. Daytime revenue is relatively low because customers are at school or work.

Leaving the industry early, he said, allowed him to avoid the pressure of heavy capital investment, legal risks and steadily rising operating costs.

Duc Anh believes the contraction of the gaming-center market reflects a trend already seen in many developed countries. Small and medium-sized venues may gradually disappear, leaving two business models with greater prospects for long-term survival: multi-service entertainment complexes combining Esports, food and beverage services and cafes, and premium gaming centers targeting customers willing to pay higher prices.

In some online communities, gaming-center owners have discussed alternatives such as gaming hotels, sleepbox facilities equipped with PCs or repurposing their computer systems for other uses. However, all these options face obstacles involving regulations, investment costs and commercial viability.

After years of rapid expansion, the gaming-center market is entering a period of significant restructuring. Venues without sufficient financial resources or the ability to transform their business models risk being forced out of the market.

Duy Anh