Cambodia’s gambling regulator, the Commercial Gambling Management Commission (CGMC), has made significant strides in implementing stricter controls on the casino industry. Since the enactment of Cambodia’s gaming law in 2021, the CGMC has issued licenses to 87 casinos, marking a substantial reduction from over 200 casinos operating before the new law’s introduction. This achievement demonstrates the government’s commitment to regulating and restructuring the casino sector.
Key Regulatory Changes:
- Reduction in Casino Numbers: The new gaming law has facilitated a systematic reduction in the number of operating casinos in Cambodia. Stringent requirements, such as minimum capital thresholds, have been implemented. Normal casinos are required to have a minimum capital of US$100 million, while integrated resorts must have a minimum capital of US$200 million.
- Three Gaming Zones: The law divides Cambodia into three distinct gaming zones, each with its own regulations. These zones determine whether gaming activities are prohibited, permitted, or favored, offering a structured approach to casino operations.
- Gross Gaming Revenue Tax: The law introduced a tax on gross gaming revenues (GGR), with different rates for VIP and mass gaming. VIP gaming is subject to a 4% tax on GGR, while mass gaming faces a 7% tax. Casino operators must declare their GGR directly, and obligations are collected monthly based on these declared revenues.
Effectiveness of Stricter Controls
Cambodia’s regulatory efforts have resulted in a significant reduction in the number of smaller casinos. The imposition of higher capital requirements has forced many smaller operators to close their doors, aligning the industry with the government’s objectives.
Cambodia’s regulatory reforms in the casino industry have been effective in reducing the number of casinos and bringing about a more controlled and structured gaming landscape. By introducing stricter controls, minimum capital thresholds, and a tax framework, the government aims to ensure responsible and sustainable casino operations while generating revenue from the sector. The issuance of 87 licenses under the new law represents a significant step toward achieving these goals.