The Cambodia’s casino industry was just nothing more than a footnote in global casino space, but it has grown significantly in the past few years. There has been a proliferation of about 53% in the number of the licenses issued, leading to the country that is being viewed as the “New Land of Opportunity” by the Casino Review Magazine (CR). Another journal recently accompanied a one-on-one with the Global Market Advisors (GMA) Senior Partner Andrew Klebanow in order to get his awareness on the developing industry and where it is being headed.
Cambodia is now becoming one of the most prevalent destinations for the casino gaming in Asia. Because of this, the casinos in Cambodia are now growing and playing a huge part in the economy. Every year, the tens of thousands of foreigners, mostly coming from China, Thailand and Vietnam visit about 150 casinos in Cambodia. The Cambodia hosts the most of casinos in Southeast Asia that is followed by the Myanmar, Philippines and Laos.
Thailand, Vietnam, Myanmar and Laos all have the laws banning their citizens from this gambling. This has allowed the Cambodia, which also has the anti-gaming laws written on the books, to become regional hub for making a bet. The casino market is now worth a whopping $51 billion in the whole Asian countries. Casinos in the Cambodia are responsible for large chunk of that sum. Certainly, gaming establishments has contribute hundreds of the millions of dollars to the Kingdom’s tax that revenue every year. Though, they have also been responsible for an array of the social problems.
Casino in Cambodia saw a huge jump in 2018 :
Over the time of 2018, the government has granted 52 gaming licenses to the casinos in Cambodia. This has brought the total of up to 150. This figure also represents a 53% rise from 2017 when this Kingdom only had 98 casinos in the whole town. Increasing demand, especially from the record numbers of Chinese tourists, has been reported as a reason for the growth.
More than about 1.6 million Chinese tourists have visited Cambodia in 2018, in accounting for 26% of all the foreign arrivals to that Kingdom. Nearly 90 out of the 150 casinos found in Cambodia are situated in the coastal Sihanoukville. The Poipet on Thai border and the Bavet near the Vietnam each host more than that of 10 gaming venues.
List of casinos in Cambodia:
With the 1,658 rooms and the suites, the NagaWorld in the Phnom Penh and it is the largest casino in Cambodia. The NagaWorld is subsidiary of NagaCorp that has given the exclusive rights to operate this casino within 200 km of the Phnom Penh. That deal is effective until 2035. Other prominent casinos in Cambodia include the:
> Holiday Palace Casino & Resort
> Star Vegas Casino (Poipet)
> Poipet Resort Casino
> Las Vegas Sun Casino
> Lucky Ruby Border Casino
> Le Macau Casino & Hotel (Bavet)
> Queenco Hotel & Casino
> Fortuna Hotel & Casino
> Golden San Hotel & Casino (Sihanoukville)
> Thansur Sokha Hotel (Kampot)
> Dara Sakor Seashore Resort Casino (Koh Kong)
Only foreigners can gamble in Cambodia casinos :
Save for a few exceptions, this gambling is illegal especially in Cambodia under the Law 1996 on the Suppression of the Gambling. Though, this ban only extends to the Cambodian citizens. Locals are now allowed to buy into the five privately-operated national lotteries. But up until 2009, the Cambodians were allowed to use the slot machines. This practice was prohibited by the government at that time. Gambling-related fierceness was cited as just a cause. Many inside the Cambodia have noted that the enforcement of the gambling ban is now somewhat spotty. Yet, by the letter of law, violation against the ban can lead to the fine or even a jail time.
Is Cambodia the next Macau?
Supporters of the Cambodia casinos frequently say that the increased tax has revenues more than make up for any kind of negative impacts. Some also claim that the gaming taxes were the instrumental in the economic prosperity of both the Singapore and Macau. The Or Saroeun, Preah Sihanouk provincial hall spokesperson, once told the local media that development of more casinos in Cambodia will be good for the economy of the country.
According to him, there will be a bigger demand for the products and services that vendors, businessmen, and the others will just be happy to meet them.
“It also means the more money for the government’s coffers,” he has stressed.
The annual licence fee for the Cambodia casino operators is just pegged at $40,000. Casinos contribute about more than $50 million annually in the tax revenues. Some figures say that the gambling is indirectly responsible for subsidizing more than $2 billion to the Cambodia’s economy. The government has just set a target of about $56 million in revenues obtain from casinos for 2018.
Proponents say that the Cambodia casinos bring the more employment opportunities and have increase the value of the land for sale in Cambodia.
Social ills connected with Cambodia casinos :
The mere mention of the casinos often generates dispute. Countries such as that of Pakistan, China, Brazil, Mexico, Ethiopia and Thailand, do not have even a single casino within their borders. In these countries the casinos are often heavily regulated. Many of medical bodies across the world have recognized this problem of compulsive gambling. There have also been reports of both the foreigners and locals in the Kingdom who have just resorted to crime because of the addiction to the gambling.
Additionally, some people believe that the certain casinos in Cambodia are now being used for money laundering only. The latest Basel Anti-Money Laundering Index has ranked Cambodia among the countries in the world the most vulnerable to money laundering. The Chan Sey, Executive Director of Affiliated Network for the Social Accountability (ANSA), has said that the increasing number of casinos found in Cambodia should not be the reason for this optimism. The Casinos, according to him, are just not always good for the country and for its people. He cited that the money laundering, human trafficking, and the social problems as the most likely negative effects arise from a growing gambling industry.
What are Sihanoukville casinos like?
Since most of the Cambodia’s casinos found in Sihanoukville, many among us are curious what it’s like inside. They accommodate to mainly Chinese patrons. So, are there the Chinese games? Do they play the poker?
Here are some of the quick facts about the Sihanoukville casinos:
1. Slot machines are quite the popular and usually only accept the US currency.
2. You can find the machines for anywhere starting from the few cents to $5 per game
3. Many are just starting to accept the Chinese currency and most have the currency exchanges onsite.
4. Most casinos have the Chinese-speaking staff and served Chinese food.
5. Table games include the baccarat, blackjack, poker and roulette.
6. Many of the casinos offer free rooms for between the range of $300 and $800 buy-ins.
New Cambodia casino laws on the horizon:
In the last few years, the Cambodia has been trying to reform the laws governing gambling and other related activities. Gaming companies from the Macau, US and the other places have been hesitant to invest in Cambodia because of the outdated laws and the tax codes.
But In 2014, legislation was projected that would overhaul this current regulations. The proposal was just meant to generate the more state revenue while also attracting the more visitors from around the globe. These will effectively double the tax rate of up to 5%. However, the proposal has yet to be passed five years later. This suggestion would also create a Gaming Management Committee (GMC). The Gaming Management Committee (GMC) will be responsible for ensuring that these casino operators follow the standard internal financial controls in order to guard against money laundering and the other illegal activities. Proponents hope that these measures will pass in 2019.
Conclusion :
In the recent months, Cambodia has appeared as an area of the interest after the Ministry of Economy and the Finance, which regulates this gambling industry, dished out the ten new casino resorts that licenses with the majority set in order to be built in the port town of the Sihanoukville. The new permits will also take the total number of the licensed gambling operators in the Cambodia to 75, with those of currently up and running focusing their business on the Phnom Penh (the country’s capital city). These licenses cover around the 7,660 slots machines and about 2,600 table games across the region with the developing industry showing signs of the growth – in 2013, casino and the gambling taxes total of USD$22m but in last year this amount has increased to $34m.
The new licenses will provide an opportunity for those that are looking to get in on the action – so as long as they understand this gaming industry in Cambodia and how it works. The Cambodia has the potential to set up the blueprint for the online gambling in Asia – the basic requirement for operators to cope with land-based casinos is the same model that is being used successfully in the Cambodia – and in doing so build a very successful egaming market in its own right.
These are early days, of course, but that’s why the opportunity for the European and US operators is just so interesting. Their experiences and the expetise is just what the Cambodia needs right now, and for those who willing to take the plunge, their rewards will be there.