The gaming sector in Cambodia has experienced a difficult initial six months of the year. Data from the Commercial Gambling Committee (CGCC) within Cambodia’s Ministry of Economy and Finance reveals that tax income from casinos has been underwhelming, despite governmental attempts to revitalize tourism and associated economic endeavors.
Of the more than 200 casinos granted licenses since 2021, a mere 20 are presently functioning. This has led to tax receipts barely surpassing 8% of the sum projected within the national budget legislation. The administration had aspired to gather 1.742 trillion riels (roughly US$435.5 million) from the sector.
The lackluster performance is attributed to the sluggish economic rebound following the COVID-19 outbreak and a significant decrease in visitor numbers, particularly from nearby nations such as Thailand and Vietnam, where border limitations have only lately relaxed.
Ros Phearun, a deputy director-general at the Finance Ministry, recognized the difficulties, noting that while internal tourism is improving, international tourism remains restricted. He emphasized the dependence of the gaming sector on overseas guests, especially in frontier zones.
Further complicating matters for the industry, the Law on the Management of Integrated Resorts and Commercial Gambling (LMCG), implemented in November 2020, mandates that casinos must annually renew their licenses. This fresh regulation introduces an additional layer of intricacy and expense for businesses already striving to remain operational.
Phearun stressed the dedication of the Cambodian Gaming Commission (CGCC) to maintaining regulations within the gaming industry. He revealed that among more than 200 licensed gambling establishments, 129 have sought license extensions this year, with the CGCC having granted 13 fresh licenses already.
This development coincides with a period of difficulty for Cambodian tourism. The nation experienced a substantial 85% decline in overseas travelers in 2021 compared to the previous year, dwindling from 1,306,143 to a mere 196,495.
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