Vietnam Sports Betting Stifled by Outdated Regulations

• Vietnam’s Decree 06/2017 imposes restrictive sports betting conditions, such as capping bets and excluding online platforms.
• This has driven billions in annual betting revenue to offshore sportsbooks, hindering domestic growth estimated at $10 billion.
• Experts urge regulatory reforms, including legalizing online betting, expanding jurisdictions, and shifting tax policies.

HANOI – Vietnam’s sports betting, valued at billions of dollars annually, remains largely untapped domestically due to outdated and restrictive regulations, according to local experts.

At a seminar held in Hanoi on November 28, stakeholders and business leaders criticized the limitations imposed by Decree 06/2017, calling for modernization to meet the demands of the digital era.

Decree 06: An Obstacle to Growth

Enacted in 2017, Decree 06 legalized betting on horse races and international soccer under strict conditions. However, at the seminar, organized by Vietnam’s Association of Foreign Invested Enterprises (VAFIE) and The Investor, experts described the decree as “vague, prohibitive, and outdated.”

Key restrictions include a cap on legal sports betting at VND 1 million (~$42). Limitations on betting activities only allow the activity in 20 pilot provinces. Additionally, operators must meet high capital requirements. For horse racing and soccer, VND 1 trillion is needed while VND 300 billion is needed for greyhound racing—while 5% of sports betting revenue must be paid as tax to the government.

The biggest shortcoming is the exclusion of online and mobile sports betting, forcing gamblers to rely on outdated paper or phone methods. Economist Can Van Luc of BIDV Bank argued that these barriers prevent Vietnam from reaping the potential tax revenues and economic benefits of a regulated market.

A $10 Billion Market Slipping Away

Vietnamese bettors spend between $5 billion and $10 billion annually, primarily on soccer, but most of this money flows to legal online sportsbooks due to restrictive domestic laws. Hoang Ngoc Nhat, chairman of Thien Phuc Joint Stock Company, emphasized that regulatory reforms could keep this revenue within the country while creating a more attractive investment climate.

Nguyen Ngoc My of Vabis Group highlighted the necessity of embracing digital platforms, noting that 91% of offshore bettors already use mobile sports betting apps or online platforms. He urged the government to adopt internet-based betting to align with global trends and modern consumer habits.

2025: A Turning Point?

The National Assembly Standing Committee has set a 2025 deadline for amending Decree 06, signaling potential changes. Recommendations from the seminar will be submitted to the Ministry of Finance, including calls to expand betting nationwide, lower capital requirements, allow online betting, and tax operators based on profits rather than revenue.

Nguyen Mai, chairman of VAFIE, called for a shift in mindset, describing sports betting as a “regulated sector without the willingness to manage it.” He argued that the government should embrace the industry, as demand will persist regardless of restrictions.

Experts agree that reforming Vietnam – one of the countries with legal sports betting – could transform the sector into a lucrative market. Suggested changes include:

• Legalizing mobile and online betting.
• Expanding betting beyond the 20 pilot jurisdictions.
• Revising tax policies to focus on profits, not revenue.
• Using technology to prevent money laundering and regulate player behavior.

As noted by Can Van Luc, sports betting is “a cultural, recreational, and tourism need” that will continue regardless of Decree 06. By modernizing its regulations, Vietnam has an opportunity to retain billions in taxable revenue.

News tags: Can Van Luc | Countries | Country | Decree 06/2017 | Hoang Ngoc Nhat | Nguyen Mai | Nguyen Ngoc My | Vietnam