News

Cambodian gambling industry sees poor H1 results

Despite efforts by the government to revive tourism and related economic activity, statistics from the Commercial Gaming Committee of Cambodia (CGCC) of the Ministry of Economy and Finance have showed poor state revenue from commercial gambling.

Only 20 of the more than 200 casinos legalized in 2021 or later were active as of June 30. Resulting in a state revenue collection of little over 8% of the total required by budget legislation.

According to the law, the state must obtain KHR174.2bn (US$43.55 million) from the commercial gaming sector in the Philippines.

The bad results are a result of the region’s tourism numbers falling precipitously following COVID-19 and a delayed economic recovery.

Ros Phearun, the deputy director of the Financial Industry Ministry, stated to the Post: “We’ve observed that local visitors are traveling, but foreign tourism is still in its infancy. This is crucial to the commercial gaming industry, especially in the recently developed border regions with Vietnam and Thailand. The resumption of commercial gaming activities has slowed revenue collection.

Casinos must annually renew their licenses in accordance with the Law on the Management of Integrated Resorts and Commercial Gambling (LMCG), which was put into effect in November 2020.

129 of the more than 200 casinos with licenses have reapplied this year. And the CGCC’s General Secretariat has issued 13 licenses as a result. Phearun stated that the CGCC would ensure that the LMCG is followed.

The number of foreign visitors to Cambodia decreased by 85% in 2021. From 1,306,143 in 2020 to 196,495, according to the Ministry of Tourism.