Casino finds itself in royal mess at Vietnam’s top resort town
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The owners have reported multi-million dollar losses, blaming a drop in Chinese gamblers visiting Ha Long Bay.
The company running the only casino in Vietnam’s famous Ha Long Bay appears to have been dealt a bad hand.
The Royal International Corporation said in a new financial report that its losses in the third quarter had jumped 23 times from a year ago to more than VND69 billion ($3.04 million).
That added to a VND100 billion ($4.4 million) loss in the first nine months, a fourfold increase from 2016, the company said.
Most of the losses were incurred by its casino operation, but its villa business also played a small part, it said.
The casino was opened in 2003 but the business has bled red ink since 2013. The company reported a VND154 billion loss in 2014.
Managers said most gamblers come from Taiwan and mainland China, but fewer have been showing up of late.
Vietnam has six casinos that open exclusively to foreigners, and four of them are reporting losses.
Earlier this year the government lifted a long-time ban on Vietnamese nationals to allow them to gamble in two casinos – one on the southern resort island of Phu Quoc and the other at the Van Don Special Economic Zone in the northern province of Quang Ninh Province, close to the loss-making Ha Long casino.
Both casinos are under construction.
Questions & Answers
Q.What is the primary reason for the Royal International Corporation's significant financial losses?
What is the primary reason for the Royal International Corporation's significant financial losses?
The corporation attributes its multi-million dollar losses primarily to a sharp drop in Chinese gamblers visiting Ha Long Bay. Its casino operation is the main source of these losses, with the villa business also contributing a small amount.
Q.When did the casino in Ha Long Bay first start experiencing financial difficulties?
When did the casino in Ha Long Bay first start experiencing financial difficulties?
The casino, which opened in 2003, has been consistently bleeding money since 2013. The company reported a substantial loss of VND154 billion in 2014 alone.
Q.Are other casinos in Vietnam also struggling financially, similar to the one in Ha Long Bay?
Are other casinos in Vietnam also struggling financially, similar to the one in Ha Long Bay?
Yes, the article states that four of Vietnam's six casinos, which are exclusively open to foreigners, are currently reporting losses. This suggests a broader trend beyond just the Ha Long Bay operation.
Q.Will Vietnamese nationals soon be permitted to gamble in casinos, and if so, where?
Will Vietnamese nationals soon be permitted to gamble in casinos, and if so, where?
The government recently lifted a long-standing ban, allowing Vietnamese nationals to gamble in two specific casinos. These will be located on the southern resort island of Phu Quoc and at the Van Don Special Economic Zone.
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