Vietnam Introduces Online Lottery Offering

Published Sunday, November 27, 2016 - Online-Casinos.com
Vietnam Introduces Online Lottery Offering

The Asian online gambling market is huge but largely untapped because of restrictive laws governing betting in many Asian countries. Vietnam for example is keeping its citizens from betting on the internet and penalties for illegal gambling are harsh and strict. The situation involving gambling in Vietnam has long been a mixed bag of opinions. There are ongoing debates about reducing the penalties and introducing new forms of legal gambling. In 1999, Vietnam legalized lottery and now the country has seen fit to review the online lottery offerings. Vietnam’s Ministry of Finance has decided to allow a computerized lottery in the country, maintaining that the platform is operating transparently.

Concerns were raised in Vietnam when Vietlott partnered with an indirect subsidiary of Malaysia-based firm Berjaya Corp Bhd (BCorp). The outside firm was granted an 18-year investment license to operate the computerized lottery in Vietnam starting next January.

Ministry of Finance deputy head of the finance and banking bureau Nguyen Hoang Duong responded to the critics of the decision, “Vietnam is inexperienced in this new business model” of running a computerized lottery.” Duong added,  “The cooperation helps Vietnam leverage the experience and technology of the foreign partner as well as sharing losses if the business proves unsuccessful,” The government approved of  the partnership back in 2011, Duong pointed out. Vietlott deputy CEO Nguyen Thanh Dam said Berjaya Corp is involved with equipment investment and procurement and the deal does not involve equity in the company.

Dam commented, “By the time Vietlott was launched in Vietnam, not a single local manufacturer had been able to produce the machines, equipment and technology solutions needed to run the computerized lottery.” When details were asked regarding the revenue share that the Malaysian joint venture partner would receive Duong declined to disclose more information. Vietlott, will be required to pay taxes but in a different manner, the state-run computerized lottery will be paying 15 percent excise tax and 10 percent value-added tax.

 

 

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