Cambodia's gaming industry could see increased competition following a decree by the Vietnamese government that will allow its citizens to place bets on regulated sporting events, though the limited scope of the legislation should soften its impact, a government official said yesterday.

On Friday, Vietnam's government issued a decree aimed at curbing widespread black market betting on international sporting events by launching a pilot program that would allow Vietnamese citizens over the age of 21 to place wagers on football and horseracing. Betting on sports events has proliferated in illegal gambling dens and online betting rings despite frequent crackdowns by authorities.

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Oliver Massmann, general director of law firm Duane Morris Vietnam, said in its initial form, Vietnam's sports betting legislation falls short of opening up large-scale competition.

"As there is only one sport betting operator allowed from the effective date of March 31, and the bet is allowed only for international soccer matches, the regulation will, on the one hand, formalise sports betting," he said in an email.

"But on the other hand, it will create a monopoly and unfair competition."

He said the stakes are high for investors to be selected for the five-year pilot program, which requires that operators have a minimum capital investment of $459 million.

"If [investors] fail to be selected, there is a high possibility that illegal soccer betting will continue their operations," he said. "It would be better if the government sets out very strict regulations instead of fixing only one entity to do international soccer betting."

Massmann said recent moves by the Vietnamese government showed a willingness to open up the potential domestic gaming market to attract investors.

"But, we should wait and see what happens in the next three to five years after the trial period to see whether such activities will be further allowed," he said.

To read the full article, visit The Phnom Penh Post website.