Cambodia’s Internet Gateway a Problem for iGaming

The launch of Cambodia’s national internet gateway has been postponed, but soon the country will require service providers and telecom companies to connect to it, in a possible challenge to China-facing iGaming operators.

Cambodia’s Internet Gateway a Problem for iGaming

Cambodia’s national internet gateway may pose challenges for the country’s online gaming sector. All internet service providers and telecom companies were given a February 16 deadline to connect to the gateway. That deadline was postponed, but no one expects the government to abandon the plan.

The delay prompted this statement from the Internet Society, a nonprofit whose avowed mission statement is keep the internet a force for good: “The delay does nothing to change the nature of this gateway—it only pushes worrying effects off into the future.”

Critics of the new requirement say its purpose is to discourage political activism, silence dissent and crack down on non-approved communications, in a model like China’s. And one thing China disapproves of is online gaming. Beginning in 2019, Cambodia hewed to Beijing’s demands with a ban on iGaming. That ban hasn’t prevented gray-market operations, which have flourished in the kingdom.

Human rights activists decry the impending internet gateway because, they say, it will restrict freedom of information while attacking privacy. It will also, they say, hamper the country’s tech development through bad network performance and increased costs.

Recently Cambodia accelerated its restrictions on online gaming through the Telecommunications Regulatory Commission (TRC). That body has banned foreign gaming domains and online gaming platforms.

The TRC issued a statement saying it will “continue to work with the National Police and relevant authorities in charge of telecommunication operations to shut down all the websites that operate online gambling and lottery as they are illegal and against the government’s circular.”

Daniel Li, senior associate business development for Indo-China at IGamiX Management & Consulting, told Asia Gaming Brief the measure should be of concern to China-facing online gambling operators. But an argument can be made in favor of the measure, he added.

“The lack of censorship and control over Cambodia’s internet has been exploited by pedophile rings, cyber-attacks on the financial sectors, scammers as well as misinformation and organized criminal associations,” said Li. “Whilst there are criticisms over the use of this for political gains, critics haven’t pointed out the benefits this would have in safeguarding online users. Consumer protection, fair play anti-money laundering and terrorism financing have been high on (the government’s) agenda.”

Moreover, he added, “The impact on illegally operated online scams and online gaming platforms based in Cambodia may be a little more challenging to detect as their activities are predominantly focused to overseas audiences.”