Chinese investment explodes
Cambodia boosted its number of casino licenses by 53 percent in 2018: a total of 150, up from 98 in 2017. Most of the licenses were granted for operations in Sihanoukville, which now has 88 licenses, reported Asia Gaming Brief. The coastal community, a key part of China’s Belt and Road initiative, has become a magnet for Chinese investment, including casinos.
According to a July 2018 report in the Guardian newspaper, China invested $5.3 billion in the country between 2013 and 2017—more money than the Cambodian government did. And more than 1.27 million Chinese tourists visited the country in the first eight months last year, a 72 percent increase over the same period in 2017.
In fact, of $1.3 billion invested in Sihanoukville between 2017 and 2018, $1.1 billion came from China. Chinese casino operators are attracted by what the Guardian called “nonexistent gambling regulation and lax money-laundering laws.” Gambling remains illegal for Cambodian locals.
Ros Phearun, deputy director general of the ministry’s financial industry office, said authorities expect to collect $56 million from the casino industry for full-year 2018. “We are actively drafting a law to govern casino and gambling businesses, and when it is finalized and ready to be activated, we hope revenue from the sector will be bigger,” Phearun recently told reporters.
Gaming operators in Cambodia must pay an annual US$40,000 license fee.
