A national scheme for regulating gaming in Cambodia has officially become law.
The much-anticipated legislation, the “Law on the Management of Integrated Resorts and Commercial Gaming,” approved by the government in September and now signed-off on by the legislature, is designed to promote foreign tourism with the aim of spurring economic growth and creating jobs.
As an official statement from the administration put it, “(It is) in the face of the increasing investment (that) the government has pushed for the management of the gambling sector.”
The law establishes three distinct gaming zones that will be overseen by a new Integrated Resort Management and Commercial Gambling Committee, comprising 11 government ministers. These include so-called “Prohibited Zones” where gaming is not allowed in any form; “Permitted Zones” where casino markets are already established; and “Favored Zones,” aimed at opening the coastal provinces of Sihanouk and Koh Kong to resort-scale development and, by implication, limiting it to those jurisdictions.
Significantly, the law also provides for an operator-friendly tax regime𑁋4 percent on VIP and 7 percent on mass-market revenues𑁋earning the praise of NagaCorp, the Hong Kong-listed giant of Cambodian gaming whose NagaWorld resort complex enjoys a monopoly in the capital of Phnom Penh.
The rates “allow Cambodia to be competitive with other jurisdictions,” said Chairman Tim McNally.
“We have successfully operated in an emerging country, and part of that overall success has been a reasonable and competitive tax rate. We are pleased that a reasonable approach continues with the new law.”
NagaCorp plans over the next several years to invest around US$3.5 billion to expand NagaWorld and also wants to develop a non-gaming resort near the ancient temple ruins of Angkor Wat, a popular international tourist destination and a UNESCO World Heritage site.
It’s hoped also that the law will allow authorities to incorporate technology in more effective ways to improve their ability to monitor casino operations and financial transactions to enable the sector to operate under the umbrella of transparent law,” as Economy and Finance Minister Aun Pornmoniroth put it to make Cambodian gaming more attractive to mainstream investors by dispelling its image as a haven for money laundering and other crimes.
