Cambodia brings new rules on casino operators

Cambodia has been actively involved in limiting the reach of the illegal gambling industry in the country. That has been necessitated by the mammoth proportions underhand and clandestine gambling operations have taken, but more importantly, the serious reputation damage they have done to the country.

Foreign businesses have fled, tourists are scarce, and the economy is in the doldrums. No more says the country’s Prime Minister, Hun Sen, who gave officials a simple ultimatum – deal with illegal gambling or be gone from your posts.

The latest move comes from the Commercial Gambling Management Commission of Cambodia and the organization’s General Secretariat who have issued new guidelines on how commercial casinos in the country ought to operate, as reported by The Phnom Penh Post, an English local media outlet.

Cambodia has been attempting to shutter illegal business, but a recent action against illegal operators in the country produced limited results. This is mostly due to the fact that Cambodia wanted to only act in cases where it had indisputable proof that illegal gambling has been taking place.

About two months ago, Cambodia confirmed that it is looking to boost its tourism through the renewal of 70 casinos. The Commercial Gambling Management Commission of Cambodia’s new guidelines will now expect from all operators that wish to remain operational as legal entities to renew their licenses by December 31, 2022. Following this deadline, any entity that has not reapplied will be considered illegal.

The new guidelines will change the level of taxation and operational conditions. They will also introduce three new zones, known as Permitted, Prohibited and Favored zones. Essentially, the Permitted zones is where gambling businesses will be able to operate. The Prohibited zones, as their name clearly suggests are those that will have no gambling of any kind, the General Secretariat insists.

Because of the proliferation of integrated resorts in the region, Cambodia is trying to move with the times, which means that the Favored zones will be designated for these new developments exclusively. These new rules should offer further course correction for the gambling industry in the country, but they still seem to be focusing on commercial casinos that are already complying with all existing rules.

To truly address the underlying problem, Cambodia would need to double down on its efforts of stopping illicit operators. Many workers have been fleeing Cambodia over perilous or exploitative work conditions in the gambling business as well, creating even more trouble for the government and the country’s reputation.

Image credit: Unsplash.com