The reality of illegal games in Vietnam
At the Workshop on implementing solutions to prevent payment for unlicensed games that took place on the morning of March 23, Mr. Le Quang Tu Do, Director of the Department of Radio, Television and Electronic Information ( Ministry of Information and Communications ) said: From 2019 to now, at the request of the Department of Radio, Television and Electronic Information, Google has removed 294 gambling, prize-winning, violent, and unlicensed games; Apple has removed 90 gambling, prize-winning, unlicensed games; stopped 543 websites with signs of providing unlicensed games, gambling, and prize-winning games. However, the number of unlicensed games on platforms has not decreased but has shown signs of increasing. Users in Vietnam only need to go to Google Play or Apple Store to access hundreds of unlicensed games from foreign companies.
According to domestic game publishers, the reason why foreign companies bringing games to Vietnam increased sharply without having to apply for a license from the state management agency is because Apple's AppStore or Google Play app stores changed their discount policies. Accordingly, Google has reduced the cost of paying on the app store to 15%, applied to developers earning the first 1 million USD per year. Meanwhile, Apple also made a similar adjustment, developers with annual income from the AppStore under 1 million USD also only lost 15%. Previously, the discount rate for both app stores was 30%. In addition to using credit cards, players can pay via MoMo e-wallet on both AppStore and Google Play app stores and recently, Shopee Pay has also connected payments on Apple's AppStore app store.
At the conference, Mr. Le Quang Tu Do shared that there are currently hundreds of thousands of unlicensed games being released online, mainly on the Apple App Store, Google Play Store, and Valve Stream. The revenue of unlicensed games is estimated at nearly 5,000 billion VND/year.
According to the Director of the Department of Radio, Television and Electronic Information: Payment channels supporting illegal games usually include payment intermediaries (e-wallets) or bank transfers (internet banking). Game providers connect to e-wallets and attach QR codes, phone numbers or bank account numbers for transfers. Players scan QR codes or transfer money to transfer money to the game provider. The game provider receives money and will load virtual items/virtual money into the game account for the player.
Payment channels supporting unlicensed games
The Director of the Department of Radio, Television and Electronic Information also pointed out payment channels that support illegal games such as: Through In app - purchase (IAP) such as: Google, E-wallet: MoMo, ZaloPay, VTC Pay; Credit card or debit card: MasterCard, Visa, Visa Electron; Telecommunication account: Vinaphone, MobiFone , Viettel; Apple...
When paying on IAP, payment intermediaries will know the following information: Information about the transactor (full name, phone number, email, etc.), total amount of money spent on services and applications. Network operators will know information such as: User's phone number, product or service purchased, transaction value. Through initial research, when releasing a game on the app store, revenue from payment via credit card (Visa/Master) accounts for 5-7%, MoMo e-wallet accounts for 60%, the rest is other forms.
Payment channels supporting unlicensed games through payment websites (game top-up): https://muacash.com , http://www.napgamelau.com , https://napgamemobile.com , https://www.napgame247.com , https://naplau.com… These websites make payments by transferring money directly from the user to the bank account, e-wallet of the payment recipient. Then the payment recipient makes the top-up using IAP on Google, Apple. These websites allow topping up both licensed and unlicensed games.
Recommend that organizations and businesses providing payment intermediary services comply with the law
The Ministry of Information and Communications said that Decree No. 143/2021/ND-CP dated December 31, 2021 amends and supplements a number of articles of Decree No. 88/2019/ND-CP on administrative sanctions for violations in the monetary and banking sector. Point e, Clause 4, Article 27 amended and supplemented at Point d, Clause 16, Article 1: Fine from VND 40,000,000 to VND 50,000,000 for acts of performing, organizing the performance or facilitating the performance of acts of using, taking advantage of payment intermediary services for gambling, organizing gambling, fraud, defrauding, illegal business and committing other illegal acts.
Circular No. 23/2019/TT-NHNN amending Circular No. 39/2014/TT-NHNN guiding on intermediary payment services. Point d, Clause 6, Article 9: It is strictly forbidden to use e-Wallets to conduct transactions for the purposes of money laundering, terrorism financing, fraud, cheating and other illegal acts; it is strictly forbidden to rent, lease, borrow, lend e-Wallets or buy, sell e-Wallet information. Circular No. 24/2014/TT-BTTTT dated December 29, 2014 of the Minister of Information and Communications detailing the management, provision and use of online electronic game services.
According to Deputy Minister of Information and Communications Nguyen Thanh Lam: Vietnam's added value in the gaming industry is not high, nearly 90% of games in the market are imported or licensed, and if we count illegal online games, this rate could be even higher. In addition, when some countries near Vietnam change their policies and take measures to tighten the domestic gaming industry, those games flood into Vietnam. Domestic gaming businesses are already facing difficulties, many costs while the game life cycle is short and they are subject to unfair competition...
To prevent this situation, in the coming time, the Ministry of Information and Communications will coordinate with the Ministry of Public Security , the State Bank, the Ministry of Industry and Trade, the Department of Information and Communications of provinces and cities to handle violations of payment and promotion for games or acts showing signs of exploiting games for rewards and gambling. Direct the Alliance of domestic game producers and publishers to protect game copyrights, review and eliminate fake games, pirated games, and unlicensed games. Publish on the Ministry's Information Portal (mic.gov.vn), the Department (abei.gov.vn), and the game information portal (game.gov.vn) a list of licensed games, unlicensed game websites, and gambling games.
However, the Director of the Department of Radio, Television and Electronic Information also pointed out shortcomings and limitations such as: Payment for unlicensed games is very easy in many forms. Payment intermediaries do not check the legality of the game when making game top-up transactions, leading to top-ups for unlicensed games, gambling games, and games that violate the law. Users still lack vigilance in the process of choosing and using services and applications (games); Unlicensed games continue to be supported and widespread in Vietnam. Domestic game businesses are "shrinking" (unable to compete with unlicensed games, foreign game businesses limit cooperation with domestic game businesses and instead publish across borders to gain more profits).
Leading to risks of information security, propagating content that violates sovereignty over islands and seas, distorts history, customs, etc. Directing money flow abroad; losing tax revenue; affecting the rights of gamers.
The Ministry of Information and Communications proposes a solution to periodically update and provide payment intermediary businesses with information on the list of licensed games and the list of unlicensed games so that payment intermediaries can compare, not pay, and connect payments to unlicensed games.
Payment intermediaries are requested to comply with legal regulations and not provide payment support services for unlicensed games or games that violate the law. Strengthen and detect unlicensed and illegal games online; coordinate with the Ministry of Public Security and the State Bank to identify payment channels that are providing payment services for unlicensed and illegal games; and strictly handle violating payment intermediaries.
Require network operators to block access to payment websites that violate the law; block access to websites/applications that provide games that violate Vietnamese law.
We request that Apple and Google not cooperate with payment intermediaries to pay for games on app stores. We request that press agencies monitor, detect and provide information to management agencies about payment intermediaries that are connecting payments or supporting payments for unlicensed games. Address to receive information about payments for unlicensed games: www.game.gov.vn.
Also at the workshop, representatives of the State Bank, domestic game providers, and payment card providers made suggestions, recommendations, and difficulties encountered to the Director of the Department of Radio, Television and Electronic Information.
Article and photos: VAN PHONG
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