Tax revenues could double
Cambodia has almost 60 casinos, and is expected to add more soon. According to the Phnom Penh Post, Ros Phearun, deputy director of finance industry for the Ministry of Economy and Finance, says the draft bill is close to being passed by the ministry. Then it will be passed up to the Council of Ministers and the National Assembly, both of which are likely to approve it.
“We believe that when we have the law in place, we can increase our tax revenues by two times compared to our current revenue” of $25 million, Phearun told the Post. “We have been waiting for years to have a law, which complies with international standard to manage the industry. We welcome it and we do appreciate the minister of the Ministry of Economy and Finance for the commitment shown with us during the meeting with the committee in December last year.”
Like many jurisdictions in Asia and around the world, Cambodia is hoping to cash in on the slump in Macau, which has seen double-digit declines since a crackdown on graft and corruption by the Mainland Chinese government. Macau saw its 10th straight month of decline in March, generating $2.7 billion, while NagaWorld in Phnom Penh saw its gross gaming revenue rise 48 percent year-on-year for the first quarter of 2015. Parent company NagaCorp. reported gross gaming revenues rose of $113.5 million for the quarter, up from the $76.8 million generated in the first quarter of 2014.
Son Chhay, deputy chairman of the National Assembly’s banking and finance commission, welcomed the draft law, but emphasized that the ban that prohibits locals from gambling will still be in effect. He added that once the bill is passed by the Council of Ministers, the National Assembly should take no longer than three months to add its stamp of approval. “I think it won’t take long because the government will try to push it as they need more money to fill up their recent increase of civil servants salary,” he said.
Cambodia currently has 59 licensed casinos, up from 15 in 2013. Those gaming halls generated a total of about $25 million. With new casinos in the market, that total could double.
Chhay said members of the National Assembly support the bill, which they hope will bring the “long-awaited revival” of the country’s casino industry, according to Casino News Daily.
