Why are there no businesses allowed to bet on football and horse racing?

Midfielder Ivar Jenner (in white shirt) disputes with defender Phan Tuan Tai in the match where Indonesia beat Vietnam 1-0 in the group stage of the 2023 Asian Cup (illustrative photo)

In 2017, the Government issued Decree 06, allowing a pilot enterprise to conduct football betting business for the past 5 years to bid. The selected enterprise must have a minimum charter capital of 1,000 billion VND, and a suitable investment and business plan. However, after 7 years, no unit has been selected to pilot this type of betting business.

In a report sent to National Assembly deputies before the question-and-answer session at the National Assembly Standing Committee on March 18, Finance Minister Ho Duc Phoc said the reason was that the 2013 Bidding Law lacked regulations on bidding to select investors for football betting business, while this is a mandatory condition for the management agency to choose.

Mr. Phoc said that in 5 years (2017-2022), the Ministry of Finance reported to competent authorities 5 times about the problems. This agency also drafted a decree to replace Decree 06, the most recent in March 2023, after the Law on Bidding (amended) was issued.

Currently, the Law on Bidding (amended) 2023 supplements regulations on bidding to select investors to implement business investment projects. The guiding decree issued in early March added regulations that international football betting business must go through bidding.

Therefore, the Ministry of Finance is finalizing a draft decree amending Decree 06 to comply with new regulations and selecting pilot investors in this field.

The turnover of the illegal football betting market in Vietnam is estimated to be up to tens of billions of USD, but the State cannot control the cash flow and taxes. Currently, many countries allow football betting business to avoid tax and fee losses.

Along with international football betting, Vietnam also allows horse and dog racing betting, with the condition that the investing enterprise must have a minimum capital of 300 - 1,000 billion VND. This type of business does not have to be selected through bidding but must be appraised by the Ministry of Planning and Investment and approved in principle by the Prime Minister. The Ministry of Finance will grant a license after the enterprise builds a racetrack and the facilities are ready for operation.

According to the Ministry of Finance, since 2017, 7 localities have requested the Prime Minister to approve investment policies, of which a project in Soc Son (Hanoi) was approved. After nearly 7 years, this project has not been implemented due to problems with the capital contribution mechanism from the Vietnamese investor, Hanoi Tourism Corporation. "This problem is under the jurisdiction of the Hanoi People's Committee," said the Minister of Finance.

The remaining 6 projects are awaiting investment approval from competent authorities. In addition, a pilot enterprise placed bets on dog racing at a racetrack in Ba Ria - Vung Tau province since 1999, before Decree No. 06 was issued. In March 2023, this enterprise stopped operating due to the expiration of the project's operating period.

TB (according to VnExpress)

Source: https://baohaiduong.vn/vi-sao-chua-co-doanh-nghiep-duoc-ca-cuoc-bong-da-dua-ngua-375098.html