Ha Long casino registers losses due to the World Cup and the big profits of its VIP clients

Royal International Corporation (RIC), operator of the Royal Ha Long Casino, posted losses of more than VND9 billion in the second quarter of 2026, a reversal from profits of more than VND10 billion in the same period a year earlier and well below the profit of nearly VND7.4 billion in the first quarter.

Net income for the quarter reached nearly VND32.8 billion, down nearly 30% year-on-year. In the first six months of the year, income totaled almost 76.9 billion, just a slight increase compared to 2025.

As revenue fell, the cost of goods sold rose to more than 29.3 billion VND from 27.3 billion in the second quarter of 2025. Selling and administrative expenses also grew and interest barely fell, pushing the company from profit to loss.

The 57% increase in land lease prices in 2026 significantly increased the complex's cost structure.

According to RIC, the conflict between the United States and Iran caused an increase in fuel and airline ticket prices, reducing the number of international visitors. In addition, the 2026 World Cup, held in the second quarter, absorbed a significant portion of global entertainment budgets and VIP customers visited casinos less frequently.

Seasonality also weighed: the second quarter is high season for domestic tourism but low season for international tourism in Ha Long, especially among cruise passengers, a key group for the establishment.

The company added that during the period many VIP customers won consecutive bets, which reduced the portion of gaming revenue that the casino retains. Revenue from the gaming segment fell by almost half to around VND17 billion, while hospitality, food and beverage and other services grew.

RIC is one of the few companies licensed to operate a casino in Vietnam. Founded in 1994 to invest in a five-star hotel in Ha Long, it obtained its foreign casino license in 2002. Royal Ha Long Casino currently has 18 live gaming tables and 62 slot machines.

In the last ten years the company has suffered losses in eight years, with profits only in 2018 (more than 17 billion VND) and 2025 (6.8 billion). The accumulated losses are close to 600 billion VND and reduce the net worth to about 587 billion.

By 2026, the company aims for revenues close to VND200 billion and after-tax profit of about VND13.5 billion; After the first half it has only reached around 38% of its revenue target.

The nature of the business explains part of the result: the income of a casino is not all the money contributed by the players, but the part that the house retains after paying prizes, the so-called GGR.

With high fixed costs for security, staff, hotel depreciation, tables, slots and financing, a slight drop in traffic or an uptick in player win rates can turn the exercise into a loss. Competition from Cambodia, the Philippines and Singapore adds to the pressure on customer acquisition.