Cambodia Prepares Formal Casino Legislation
Cambodia’s newly re-elected government will enact formal regulations for the country’s coveted casino sector once it takes office later this month, a senior official at the Cambodian Ministry of Economy and Finance has announced.Chea Peng Cheang, Secretary of State for Cambodia’s Ministry of Economy and Finance, told delegates at this week’s Asian Casino Executive Summit in Singapore that the Cambodian People’s Party’s recent election victory would boost the country’s casino industry, adding that the new government would soon look to submit the sector to formal regulation for the first time in order to foster further growth.
“Our policy is still to develop the gaming industry in Cambodia,” Secretary Cheang said. “A new law on casinos has been drafted and I hope to submit it to the National Assembly soon after the new government comes in towards the end of September.”
Cambodia has issued licences to a total of 27 casinos, primarily situated near the country’s border with Thailand - where casino gambling is illegal. Cheang said the Cambodian government expects to receive total tax revenues of US$18m from its casino industry in 2008 - up from US$16.6m last year.
However, the Cambodian government has yet to pass any formal casino legislation in order to regulate the growing sector. An official at the Ministry of Economy and Finance explained to GamblingCompliance that the new legislation would facilitate the collection of casino taxes, as well as ensure that Cambodian casino operations conformed to international regulatory standards.
Hong Kong-listed NagaCorp is Cambodia’s largest casino operator, reporting profits up 26 percent to US$25.5m for the first half of 2008, according to a recently released results statement. NagaCorp has an exclusive licence to operate a casino within the Cambodian capital of Phnom Penh, although it recently hinted that it would be willing to offer a sub-concession to another operator for gaming within the city.
Cheang suggested that such a sub-concession would likely not prove possible under the terms of NagaCorp’s licence, however. “Under their agreement, NagaCorp is the exclusive operator [of casinos] within 200km of Phnom Penh,” he said.
Cheang added that government’s primary objective would be to use casinos in order to develop infrastructure in the Thai border region rather than authorize inner city gambling venues. But he nevertheless hinted that the government was also prepared to introduce a resort casino in order to attract tourists from further afield.
“Border casinos - that is the government’s main focus, rather than casinos in the city,” Cheang told delegates. “But the next phase will be focus on a destination casino in Cambodia that will attract international visitors.”
It has been rumoured that the Cambodian government may be preparing to offer a casino licence in Siem Reap, the city situated near the Angkor Wat temple that attracted four million foreign visitors last year. If so, the licence would be likely to attract significant international interest, industry insiders say, but only provided an appropriate regulatory structure is put in place first.
Extracted from http://www.gamblingcompliance.com/node/19232
October 2nd, 2008 at 11:36
“Border casinos - that is the government’s main focus, rather than casinos in the city,” Cheang told delegates.
Many people out there may disagree with my comment here.
The fact that Cambodia is still going through the pain [pain in this context is to convince the doner countries that we need certain amount of financial assistant to fulfill the developement plans] during CG meeting for funding to fill up the gap in national annual budget, we shall not have many casinos at all. However, I do agree with RGC on shifting the casinos to border and restrcited to foreigners only [for instant the Naga] for fact that we [Cambodia] love gambling, which will be a down side for social order if regulations are not there.
Border casinos are best option of all that RGC had ever implemented, it is not only attract neighbouring gamblers but served as a demarcation post for our borders [Poi Pet, Preah Vihear, Bavit Etc..].
Once again the regulation shall be in place if more casinos are too opened and to attract potential investors into the industry.
October 3rd, 2008 at 11:36
Yes, it is true to have border for casino, that mean casino at border and casino should not be in boundary of cities, like Siem Reap. Or casino shall be far from town about 45 Km and not near gathering places.
October 3rd, 2008 at 11:36
I am really skepticle about licensing casino in Siem reap. Most of tourists are either old couples, middle age and back packers who travel there to see and learn more of our ancient temples, cultures - the story of Khmer Empire; and our way of life that many have never heard of or only seen through TV screen. Some may wonder into a kind of fun at casino but don’t think it will attract them 100%.