Cambodia’s gambling industry has hard to time to recover from pandemic
The casino industry in Cambodia is struggling to get back to pre-Covid-19 levels as the official casino ecosystem is failing to gain traction.
The problem is mainly caused by a major shortage of tourist, but also labour strikes in larger casinos and the lack of revenue from caused by the various pandemic shutdowns in the past which made it virtually impossible for many operators to meet the government’s capital investment requirements or pay for their license renewal.
As per the government’s budget requirements, the Cambodia’s casino industry should contribute 174.2 billion riel ($43.6 million) to the country’s revenue.
Dwindling tax revenue
However, the Commercial Gambling Committee of Cambodia – a unit of Cambodia’s ministry of economy and finance – CGCC) has revealed that state tax revenue from the industry reached just eight per cent of the amount required by the budget law in the six months to June 30, 2022, impacted by the closure of most casinos nationwide, The Phnom Penh Post reported.
Most of the revenue came from lotteries and raffles, while only 20 of Cambodia’s over 200 casinos were actually operational as of June 30.
The committee also revealed that 129 casinos have reapplied for casino licenses this year but only 13 licenses have been issued by the CGCC far.
Slow recovery
Officials blame the problem on the slow uptake in international tourism on which Cambodia’s commercial gambling sector depends, especially in border areas with Thailand and Vietnam which have only just recently opened.
In the first year of the pandemic through 2020, casino tax revenue in Cambodia shrank by 53 per cent. Due to a total lack of casino gambling last year and the shortfall from the first half of this year, it appears that recovery is still a long way off, they said.
[caption id="attachment_38624" align="alignleft" width="300"] Casinos in Sihanoukville (Picture: Arno Maierbrugger)[/caption] The casino industry in Cambodia is struggling to get back to pre-Covid-19 levels as the official casino ecosystem is failing to gain traction. The problem is mainly caused by a major shortage of tourist, but also labour strikes in larger casinos and the lack of revenue from caused by the various pandemic shutdowns in the past which made it virtually impossible for many operators to meet the government’s capital investment requirements or pay for their license renewal. As per the government’s budget requirements, the Cambodia’s casino industry should contribute 174.2...
The casino industry in Cambodia is struggling to get back to pre-Covid-19 levels as the official casino ecosystem is failing to gain traction.
The problem is mainly caused by a major shortage of tourist, but also labour strikes in larger casinos and the lack of revenue from caused by the various pandemic shutdowns in the past which made it virtually impossible for many operators to meet the government’s capital investment requirements or pay for their license renewal.
As per the government’s budget requirements, the Cambodia’s casino industry should contribute 174.2 billion riel ($43.6 million) to the country’s revenue.
Dwindling tax revenue
However, the Commercial Gambling Committee of Cambodia – a unit of Cambodia’s ministry of economy and finance – CGCC) has revealed that state tax revenue from the industry reached just eight per cent of the amount required by the budget law in the six months to June 30, 2022, impacted by the closure of most casinos nationwide, The Phnom Penh Post reported.
Most of the revenue came from lotteries and raffles, while only 20 of Cambodia’s over 200 casinos were actually operational as of June 30.
The committee also revealed that 129 casinos have reapplied for casino licenses this year but only 13 licenses have been issued by the CGCC far.
Slow recovery
Officials blame the problem on the slow uptake in international tourism on which Cambodia’s commercial gambling sector depends, especially in border areas with Thailand and Vietnam which have only just recently opened.
In the first year of the pandemic through 2020, casino tax revenue in Cambodia shrank by 53 per cent. Due to a total lack of casino gambling last year and the shortfall from the first half of this year, it appears that recovery is still a long way off, they said.
