Online gaining momentum
The Cambodian Ministry of Economy and Finance has announced it has licensed 10 new casinos to be located in the resort area of Preah Sihanouk province, according to the Khmer Times.
Ros Phearun, a deputy director general of the ministry’s financial industry department, told the Times, “In the third quarter, we licensed 10 new casinos” for a total of 75. “Most of them are operating in Preah Sihanouk province where the gambling industry is nearly nonexistent.”
Phearun noted that most of the newly licensed operators want to add online games, which still must be played within a bricks-and-mortar facility. He added that most gamblers in Sihanoukville have of necessity favored online gaming. “That’s why the casino industry is rising” there, he said.
Opposition lawmaker Son Chhay said the country needs an updated regulatory framework for the country’s burgeoning casino industry. “As we keep issuing the new licenses, there will be severe effects on the country,” said Chhay, a member of the Cambodia National Rescue Party. “First, we will not get much revenue in the national budget and second it creates disorder in society by allowing local people to gamble while most of the owners are foreigners.” The Times reported that the bulk of the new investment has come from China.
“They will bring all our money out of the country,” Chhay warned, adding that casinos also create a greater risk for money laundering and other crime.
“In my opinion, we should not give any new licenses while we do not have a law to govern the industry. We don’t know how to collect tax, so we should wait until we have a law in place.”
But Phearun said the current regulatory structure is adequate to the growth of the gambling industry. “I don’t think giving new licenses is the problem because the government has clearly thought about this,” he said. “First, the government allows the building of casino along the border to create economic activity there. When we establish the casinos on the beach, it is also another option to serve tourists.”
Almost 374,000 foreign tourists visited the region from January through June, up 23 percent from the same period last year, according data from the Ministry of Tourism.
