Cambodian Prime Minister Hun Manet is banning the building of new casinos in the provinces of Kep and Kampot. It’s a bold move for the government, which acknowledges the financial contribution casino tax revenue contributes to the country’s economy, but is also looking to diversify Cambodia’s tax base.
Across Cambodia, there are currently 184 licensed gambling establishments. The vast majority of these operations are situated on, or very near to, the country’s borders with Thailand and Vietnam. Under Cambodian law, gambling establishments can only operate in a narrow geographic band that’s meant to preserve religious and cultural integrity. That’s one of the reasons that a large chunk of the Cambodian gambling business is based in the mountains of Kampot.
While plenty of Cambodians work in the country’s gaming industry, Cambodian law bans citizens from setting foot inside of local casinos to gamble. Outside of the casino, all forms of gambling are banned in the country.
Chhort Bunthang, a Cultural Relations, Education and Tourism research officer at the Royal Academy of Cambodia explained the ban to the Phnompen Post recently saying that there are already enough casinos in the country. “Apart from generating revenue for the state, casinos provide income for investors and employees. By law, Cambodian citizens are not allowed to enter casinos. But the question is whether we can control this. If managed well, it will not affect our people, but poor management could have negative consequences,” he said.
It’s unclear how big an impact the ban will have overall, but it’s worth noting that the Cambodian gaming industry generated around $20 million in tax revenue last year alone.