Poker Writer
Vietnam charged 141 people in an illegal gambling bust at the French-owned Pullman Hanoi Hotel. The Hanoi People’s Court started processing trials on Tuesday for the individuals charged in the case, which reportedly generated $106 million in total bets.
The betting occurred at King Club, located on the first floor of the Pullman Hanoi Hotel, in the form of electronic gaming. Investigators found that the first-floor gaming belonged to Viet Hai Dang Company. That company is licensed to provide electronic games with prizes to foreigners.
Gambling is permitted in Vietnam for foreigners at casinos, but not for Vietnamese nationals. This isn’t an uncommon setup in Asian nations. Earlier this summer, PokerScout report on a large investment in Vietnamese casinos.
Viet Hai Dang Company began operating King Club in 2019 in conjunction with HS Development Vietnam Company. The electronic games operated by HS Company must comply with Vietnamese law and retain 100% of the profits.
HS Company hired three Koreans to manage and run the King Club. However, Kim In Sung, the director of HS Company, proposed allowing Vietnamese citizens to play at King Club, meaning it operated afoul of regulations.
Organizers set up a rather elaborate scheme. Fake foreign identities were distributed to the Vietnamese citizens as a loophole to circumvent the law. Receptionists at the hotel would issue membership cards with pre-assigned play numbers and fake foreign names. The gamblers returned the cards when leaving. The players competed for weekly prizes for slot machines, baccarat, and roulette.
Of the $106 million in total bets, Sung illegally profited $9.2 million from the electronic gaming slots. The Korean national has reportedly escaped back to South Korea in order to avoid charges. He remains wanted.
Charges for Organizing and Participating
Out of the 141 people charged, only five are organizers, while the 136 others are charged for simply participating in gambling. In Vietnamese law, gambling is seen as a social ill and therefore carries heavy penalties. Those found guilty of organizing or promoting illegal gambling can be sentenced to prison terms. The terms can range from three months to as long as 10 years for the most severe cases.
Those found guilty of participating but not organizing can be subject to heavy fines that are greater than their total earnings.
That marks a difference compared to U.S. laws, which don’t typically prosecute the customers in illegal gambling busts.
All defendants in the case are Vietnamese and, according to investigators, were all aware of Vietnamese law prohibiting gambling.
French Ownership of Hotel
Adding to the scandal of this story, the Pullman Hanoi Hotel is a popular spot for international tourism and has foreign ownership. It is part of French multi-national hotel brand Accor. Accor runs the hotel as part of its upscale Pullman line, while the physical property is operated by Hanoi Toserco JSC.
The Pullman Hanoi website promotes the hotel as an elite option for business and leisure travelers:
The Pullman Hanoi stands as one of the city’s premier business hotels, strategically located close to corporate headquarters and government offices. It offers convenient access, just an easy 10-minute drive, to the charming Old Quarter. Ideal for productive work meetings and equally well-suited for relaxed socializing, the hotel features all-day dining at La Cheminee restaurant and panoramic views from its upper floors.
