Cambodias gaming sector has faced significant challenges throughout the initial six months of this year. Despite the administration’s concerted attempts to revitalize tourism and stimulate economic activity, tax income generated from casinos has fallen short of expectations.
Data released by the Ministry of Economy and Finance’s Commercial Gaming Committee (CGCC) reveals a concerning situation. Among the more than 200 casinos granted licenses since 2021, a mere 20 are presently functioning. This has resulted in minimal tax collection, barely surpassing 8% of the amount projected in the national budget. The government had initially aimed to collect a substantial 174.2 billion riel (approximately $43.55 million) in casino taxes.
The factors contributing to this decline are well-known. The post-pandemic recovery has been sluggish, with tourist arrivals in the region remaining a fraction of pre-pandemic levels.
Ros Phirun, Undersecretary of State at the Ministry of Economy and Finance, noted, “Domestic travel is increasing, but international tourism remains subdued. Casinos heavily depend on foreign visitors, particularly in border regions near Thailand and Vietnam, which have only recently reopened. The industry is in the early stages of recovery, explaining the slow growth in tax revenue.”
Further exacerbating the industry’s difficulties is the implementation of the “Law on the Management of Integrated Resorts and Commercial Gambling (LMCG)” in November 2020. This legislation mandates annual license renewals for casinos, potentially contributing to the reduced number of operational establishments.
Penn underscored the Cambodian Gaming Management Committee (CGCC)’s commitment to maintaining gaming regulations. He noted that of the more than 200 licensed casinos, 129 have already submitted applications for license renewals in the current year, with the CGCC secretariat granting approval to 13 thus far.
This development coincides with a period of difficulty for Cambodian tourism as it strives to rebound from the effects of the pandemic. Data from the Tourism Ministry reveals a dramatic 85% decline in foreign visitors in 2021, plunging to a mere 196,495 from 1,306,143 in 2020.
admin