Taxes increased 40 percent Y-o-Y
A bill that would more closely monitor the financial operations of Cambodian casinos may go to the country’s parliament before the end of September.
The action was spurred by a U.S. State Department memo that described the country’s gaming industry as “unregulated or under-regulated” with a higher risk for money laundering. That designation would discourage stateside operators from investing in Cambodia.
According to the Khmer Times, the Cambodian government reaped $48 million in taxes from casinos in 2016, a year-on-year increase of 40 percent. Ros Phearun, a senior official at the Ministry of Economy and Finance, wants to preserve the integrity of the industry and if possible, increase the returns.
“We really need to get this law off the ground fast, because it will help us manage the industry better and also collect taxes,” he told the Times. “It will also attract more big investors into the industry and bring in tourists. There should not be delays at the cabinet-level for the approval of the draft law.”
Like a number of Southeast Asian countries, Cambodia prohibits its own residents from gambling in the country’s casinos. Most of its players come from China, Thailand and Vietnam.
According to GGRAsia, casino tax rates may also change with the new legislation, with a gaming tax of 4 percent to 5 percent of total gaming revenue.
Tim McNally, chairman of casino operator NagaCorp Ltd., told the news outlet he’s not surprised about the possible changes. “I wouldn’t speculate on the (tax rate),” he said. “The Ministry of Finance and others have always said they are aware of the competitive nature of the gaming industry in the region—in East Asia—and they would be mindful of that and try to keep Cambodia competitive in terms of taxation.”
In July, NagaCorp reported a 20.3 percent year-on-year increase in net profit to US$150.6 million for the six months to June 30.
