.4M in taxes through September
Revisions to Cambodia’s gaming tax, in the works for two years, may be in the final stages of approval. According to CalvinAyre.com, cabinet ministers and 100 representatives of the private sector recently met to discuss the latest draft of the gaming law. And while government officials declined to specify the new draft’s tax implications, expectations were for a rate of between 4 percent and 5 percent of gaming revenue.
That’s more than the effective 2 percent rate now paid by NagaWorld in Phnom Penh, but lower than the 5 percent to 7 percent that NagaCorp Chairman Timothy McNally predicted.
Cambodia’s Ministry of Finance just released figures showing it racked up $37.4 million in gaming taxes through the first nine months of 2016, compared to $34.7 million in all of 2015.
According to the Khmer Times, there has been no indication that the government will ease its restrictions on domestic play; currently, only allowing international tourists may gamble in the country’s casinos.
McNally, who attended the recent summit, said the government and casino operators are committed to Cambodia’s tourism industry and developing the country into “a center of entertainment and leisure activities in Indochina.”
In a note cited by GGRAsia, Union Gaming Securities Asia Ltd. analyst Grant Govertsensaid the company is“excited about the implementation of the bill, as it will introduce a proper regulatory framework to Cambodian gaming. This should enhance valuation, as regulated businesses are typically more valuable. It also paves the way for greater commercial and financial support from institutions that have historically shied away from Cambodia due to a lack of regulations.
“While no tax rate was unveiled,” Govertsen said, “we continue to believe it will remain very modest.”
There are currently 69 casinos in operation in Cambodia, according to official data. Many are located in areas bordering countries that prohibit gaming, like Poipet, which shares a border with Thailand.
