Inside Asian Gaming

INSIDE ASIAN GAMING OCTOBER 2018 42 without having proper rules and regulations,” he later told IAG. “We have seen the gaming industry grow very fast and the government has had many challenges to enforce the current regulations, so we decided to take the gambling industry in Cambodia to an international level. “The current operators are mostly local, most have limited knowledge. With the new development of current gaming industry attractions in our country we decided to draft the bill by cooperating with the current operators and learning from the experiences of regulators around the world, from the US, from Europe. Then we engaged international consultants to draft our bill. “By committing to the gambling industry in Cambodia we will attract the real professional gaming operators not only for gambling industry development but also for tourist attractions.” In particular, the LMCG aims to attract foreign investment in truly world class IRs similar to that seen at NagaWorld in Phnom Penh. “That’s why for the draft law we have consulted with standard operators and asked how they would like to have the casino bill in Cambodia in order to assure them [it is okay] to invest in Cambodia,” Mey Vann continued. In the eye of the standard operators, Cambodia is still missing a lot of standard enforcement procedures so this bill already provides all of the investors’ requirements to meet with standard compliance that is recognized at the international level.” It was noted during the conference that the draft bill has not been warmly welcomed by all operators – primarily those that might best be described as “maverick” in the border towns of Poipet and Bavet, as well as the rapidly growing Sihanoukville. But for larger operations such as Donaco International’s Star Vegas, located in Poipet along the border with Thailand, regulation can only be a positive. “Donaco of course is a public company and listed on the ASX – we FEATURE IN FOCUS are the second publicly listed company that owns a casino in Cambodia after Naga – and as a listed company we certainly welcome all of the principals in the draft law,” said Donaco Executive Director Ben Reichel. “Greater consistency and transparency we think will be positive. A minimum capital requirement for casinos is also a good thing for the country – that will help tidy up some of the business. And I think tighter regulation of junket operators is positive as well. We’re happy to work within whatever the framework of the legislation turns out to be.” Discussing the challenge Star Vegas faces in the currently unregulated market, Reichel added, “Our competitors [in Poipet] are not listed and although there are some very professional, well run operators that we get on very well with, some of them are more on the cowboy end quite frankly. “Sihanoukville is a different kettle of fish because of the Chinese investment that is happening there and it will be very interesting to see how that market shakes out – because it will shake out. There will be a rationalization of the number of casinos there. “The new decree will be part of that process. That’s why we do think it is very positive. To have a more professional standard of regulation is something that makes us more comfortable.”