Still struggling to get international football betting off the ground

From 2017 to 2022, the Ministry of Finance coordinated with ministries and branches to report to competent authorities 5 times on problems and develop a draft Decree to replace Decree No. 06/2017/ND-CP on betting business on horse racing, dog racing and international football.

Illustration photo.

The government allowed one enterprise to pilot international football betting for a period of 5 years, but so far it has not come true.

Minister of Finance Ho Duc Phoc has just sent to National Assembly deputies a report on a number of contents related to the group of questions at the 31st Session of the National Assembly Standing Committee, including the implementation of laws in the betting sector.

Regarding the legal framework, the Minister said that in 2017, with the approval of the National Assembly Standing Committee and based on the provisions of the Investment Law, the Government issued Decree No. 06/2017/ND-CP on betting business on horse racing, dog racing and international football (Decree No. 06).

To ensure strict management and a roadmap for this business activity, the Government allows three types of betting (including betting on horse racing, dog racing and international football); does not allow business via the Internet; and at the same time stipulates conditions for granting investment licenses and betting business licenses.

For international football betting, the Government allows 1 enterprise to pilot business for a period of 5 years. The Ministry of Finance coordinates with ministries and branches to organize bidding to select this enterprise according to the provisions of the law on bidding. The selected enterprise must meet the conditions of minimum charter capital of 1,000 billion VND; have a plan to invest in a betting system and a business plan in accordance with the provisions of law.

However, the 2013 Law on Bidding does not have regulations on bidding to select investors to implement business investment projects, so it is impossible to organize bidding to select 1 enterprise. Therefore, from 2017 to 2022, the Ministry of Finance has coordinated with ministries and branches to report to competent authorities 5 times on difficulties and develop a draft Decree to replace Decree No. 06/2017/ND-CP. Based on the review of the law, in March 2023, the Prime Minister assigned the Ministry of Finance to complete the Decree to replace Decree No. 06/2017/ND-CP after the Law on Bidding (amended) is issued, the Minister said.

In 2023, the National Assembly promulgated the Law on Bidding (amended), which added provisions on bidding to select investors to implement business investment projects. Based on the provisions of the Law, on February 27, 2024, the Government issued a Decree guiding the provisions on the order and procedures for bidding to select investors to implement business investment.

“Currently, the Ministry of Finance is finalizing to collect opinions from ministries and branches to amend Decree No. 06, which specifically stipulates the specific conditions for bidding to select investors to conduct international football betting business to comply with the provisions of the law on investment and the newly issued law on bidding. Accordingly, the bidding to select 1 investor to conduct international football betting business is carried out in accordance with the provisions of the Law on Bidding and the Decree on betting business,” the Minister reported to the National Assembly.

For dog and horse racing betting, the current regulation is that enterprises are only allowed to conduct betting business when they have an investment project with a minimum investment scale of VND 300 billion and VND 1,000 billion, respectively. Each project must be approved by the Prime Minister on the investment policy based on the appraisal of the Ministry of Planning and Investment according to the provisions of the law on investment. The Ministry of Finance coordinates with ministries and branches to issue a betting business license after the enterprise has completed the investment in building a racetrack and prepared the facilities ready to serve the betting business.

From 2017 to present, 7 provinces and cities have requested the Prime Minister to approve the investment policy for horse racing and dog racing betting business investment projects. The Prime Minister has approved the investment policy for 1 horse racing track investment project (with betting) in Soc Son district, Hanoi. However, up to now, this project has not been implemented due to problems with the capital contribution mechanism from the Vietnamese investor (Hanoi Tourism Corporation) and is under the jurisdiction of the Hanoi People's Committee.

The remaining 6 projects are in the process of applying for investment approval. Therefore, up to now, no business has been granted a business license for horse and dog racing betting.

In addition, there is a company that has been piloting dog racing betting business in the racetrack in Ba Ria - Vung Tau province since 1999, before Decree No. 06/2017/ND-CP was issued. By March 2023, the company had stopped betting business due to the expiration of the project's operating period.

Regarding the betting business, in August 2022, also in the question and answer session organized by the National Assembly Standing Committee, a delegate raised the issue that it was time for Vietnam to allow the implementation of the Decree on betting to manage more closely and collect taxes, limiting the situation of online betting.

Responding, Minister Ho Duc Phoc then proposed a solution to amend Decree 06/2017/ND-CP on betting business on horse racing, dog racing and international football.

And now, a year and a half has passed, the Ministry of Finance is finalizing to collect opinions from ministries and branches to amend Decree No. 06, as mentioned above.

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