The Vietnamese Government is preparing to issue a new Decree governing the business of betting on horse racing, dog racing, and international football. This draft legislation outlines strict conditions for investment, licensing, and operation. This update summarizes the key requirements for obtaining a business eligibility certificate in these sectors.
I. General Operational Requirements (Applicable to all types)
- Regulatory Nature: Betting is defined as a conditional business activity subject to tight control and strict compliance with regulations.
- Currency and Payout: All transactions, including purchasing betting tickets and prize payouts, must be conducted exclusively in Vietnamese Dong (VND). The minimum planned pay-out ratio for prize winners is set at 65% of the total ticket sales revenue for each product, applicable to both fixed and variable pay-out methods.
- Distribution Channels: Enterprises must specify their ticket distribution methods in their license, which may include terminals, telephone, or the Internet.
- Technological System: The operational system must meet high technical standards.
- Hardware: Must feature G7 standard servers and terminals of clear origin. It requires a real-time, parallel backup environment, with all primary and backup servers and storage located strictly within Vietnam.
- Software: Must be copyrighted, ensure accurate and timely recording of all betting data, and guarantee high security to prevent external interference.
- Data Storage: Betting business data must be stored for a minimum of five years.
- Player Eligibility & Limits: Players must be 21 years of age or older and possess full civil act capacity. The minimum bet amount is VND 10,000 per bet, with a maximum daily limit of VND 10,000,000 per player at one enterprise. Enterprises are also required to establish internal Anti-Money Laundering (AML) regulations.
II. Horse Racing and Dog Racing Betting
These two types are grouped for investment and licensing, as they necessitate the construction of a dedicated racecourse.
- Investment Project Conditions (Pre-License):
- Location: The racecourse location must align with the provincial master plan.
- Minimum Total Investment Capital:
- Horse Racing: Minimum VND 1,000 billion.
- Dog Racing: Minimum VND 300 billion.
- Foreign Investment Limit: The total investment capital contributed by foreign investors cannot exceed 49%of the total project investment capital.
- Licensing Conditions (Charter Capital):
- Construction Completion: The racecourse construction must be completed according to the registered investment certificate.
- Minimum Charter Capital: The required charter capital mirrors the minimum total investment capital: VND 1,000 billion for Horse Racing and VND 300 billion for Dog Racing.
- Foreign Ownership Limit: Total shares or capital contributions held by all foreign-invested legal entities must not exceed 49% of the enterprise’s charter capital.
- Race Organization: Only licensed enterprises may organize races for betting. Races require approved Race Regulations, appropriate racing animals (horses/dogs), jockeys/riders, Referees, a Race Supervisory Board, and verified, functioning starting and finishing line equipment.
III. International Football Betting
This activity is classified as a pilot business and is subject to specific scope and licensing terms.
- Eligible Products: Betting is based on scores, in-game events, and tournament rankings.
- Eligible Events: Only international football matches/tournaments organized by the Federation Internationale de Football Association (FIFA) or its members are permitted.
- Exclusions: Betting on eSport Football and matches/tournaments organized by the Vietnam Football Federation (VFF) is explicitly prohibited.
- License Term: The Certificate of Eligibility for International Football Betting Business has a specific validity period of five years
