Cambodian casinos will now be taxed based on gross gaming revenues (GGR) rather than paying a lump sum.
According to the Cambodia Daily, the policy, handed down by the country’s Ministry of Economy and Finance (MEF), became effective in December, two years after the Law on the Management of Integrated Resorts and Commercial Gambling (LMCG) went into effect.
The revenue-based model taxes mass gaming at 7 percent and VIP gaming at 4 percent.
Mey Vann, secretary of state and a member of the General Secretariat of the Commercial Gambling Management Commission of Cambodia (CGMC), told the Khmer Times, “The rules and procedures determine check-and-balance practices for the balanced power among operators, regulators, inspectors and other relevant stakeholders involved in the implementation of the new proclamation.
“Check-and-balance practices mean all relevant parties are required to check or examine one another. None of them can exploit anything in the gambling business operations, while the casino party would not be able to cheat the gamblers and the gamblers would not be able to cheat the casino. Gamblers at casinos can file complaints if they have sufficient evidence.”
Vann said additional industry regulations will be phased in over the next five years—among them, a requirement that operators substitute the term “commercial gambling” for “casino” on all property signage. The change supposedly would brand the resorts as entertainment destinations rather than gambling halls.
“We cannot ask them to change immediately and so we have to give them some time as they are related to many factors such as their internal agreements and other legal aspects,” Vann said.
The CGMC has warned that casino owners must pay all due taxes “on time and in full” or face legal and regulatory action.
The new regulations are part of a broader effort to crack down on illegal gambling in the country, which has been plagued by reports of human trafficking and kidnapping for ransom linked to illegal casino operations.
