The Commercial Gambling Committee of Cambodia (CGCC) has revealed that state tax revenue from the industry reached just 8% of the amount required by budget law in the six months to 30 June 2022, impacted by the closure of most casinos nationwide.
According to The Phnom Penh Post, figures from the committee – part of the Ministry of Economy and Finance – show that only 20 of Cambodia’s over 200 casinos were operational as of 30 June, resulting in a significant decline in tax revenue.
It also revealed that 129 casinos have reapplied for casino licenses this year but only 13 licenses have been issued by the CGCC’s General Secretariat so far.
Under Cambodia’s Law on the Management of Integrated Resorts and Commercial Gambling (LMCG), which was promulgated in November 2020, all casinos must renew their licenses annually. They are also, according to the budget law, expected to generate KHR174.2 billion (US$42.7 million) in tax revenues.
The Ministry’s deputy director Ros Phearun told The Phnom Penh Post, “We’ve seen that local tourists are taking trips, but international tourism remains limited, on which the commercial gambling sector depends, especially in border areas with Thailand and Vietnam that have only just recently opened.
“Commercial gambling operations have just resumed, leading to slow revenue collection.”