Success Dragon scraps Vietnam slots deals after gov’t decree

Changes to Vietnam’s electronic gaming machine regulations have forced Asian gaming solutions provider Success Dragon to rethink deals with two of the country’s luxury hotels.

On Wednesday, the Hong Kong-listed Success Dragon alerted investors that it had terminated its deal to provide Da Nang’s One Opera Hotel with electronic gaming machines (EGM). Success Dragon said it is “discussing and negotiating on a new approach” regarding a similar deal with Le Méridien Saigon hotel in Ho Chi Minh City.

Success Dragon said the deals came undone after both hotels “encountered unexpected difficulties in obtaining the requisite business certificates for operation of EGM business.” Success Dragon said “certain attempts” have been made to obtain the certificates but it expects the certificates are “unlikely to be obtained in the foreseeable future.”

Success Dragon further warned that there had been “a core change of Vietnamese laws in respect to EGM introduced by end of 2016” that contributed to the company’s current problems.