Inside Asian Gaming

August 2013 | INSIDE ASIAN GAMING 35 It is possible that a push by the Myanmar government to legally recognize gaming could meet with resistance from the religious community. IN FOCUS licensing system. One will be for small- and medium-sized establishments, essentially allowing the existing operations to be grandfathered in as legal establishments. The government appears unwilling to simply drive the gaming venues currently in existence out of business or further underground. The other category covers large-scale casinos, enabling the development of integrated resorts. Importantly, it seems likely that the government will restrict gaming to certain designated areas in the country. These areas have not yet been set, but the general sense is that the government does not want slots on every corner. Observers suggest that gaming in Myanmar will be legalized after the 2015 general election—an election viewed as key to confirming the country’s reform policies. There are lots of other pressing issues to deal with first, however. The government is backlogged trying to update key laws to bring them into line with the new political and economic environment. Also, major challenges must be overcome before legal gaming is even possible in Myanmar. First and foremost are the cultural hurdles. Like Thailand, Myanmar is a Buddhist country and while Buddhist doctrine does not stipulate an outright ban on gambling, its teachings do seem to frown on the activity. It is possible that a push by the Myanmar government to legally recognize gaming could meet with resistance from the religious community. Two aspects of the law need to be amended to pave the way for legal gaming in Myanmar. Apart from lifting the actual injunction against the activity itself, according to Edwin Vanderbruggen, a partner at VDB Loi Limited in Yangon, under the Contracts Act of 1872—still very much on the books—gambling debts are not legally enforceable in the country. While some workaround might be possible through administrative rulemaking, it is more likely that parliament will have to take up the issue, increasing the chances that the legalization of gaming will meet resistance. Many other impediments lie ahead. The country’s myriad vested interests will undoubtedly interfere in the process, while inflationary pressures are mounting. Commercial rents are soaring and wage pressures are intensifying—over in Cambodia, the gaming industry has recently been struggling with workers’ wage demands and strikes. Still, given the enormous pent- up demand for gaming in the region as well as the country’s inherent tourism appeal, it’s a safe bet that international operators will flock to develop integrated resorts in Myanmar once the regulatory framework is in place to welcome them.