Cambodia implements legal changes for casinos

Cambodia is determined to break away from the ways of old once and for all, especially when this concerns its casino industry. In a new report by The Khmer Times, the media details a new revenue-based tax model that came into effect on December 30, 2022 that will now help the country better regulate its gambling industry and casinos.

According to the General Secretariat of the Commercial Gambling Management Commission of Cambodia, Mey Vann, the new rules introduced by the country will actually help the country have a better oversight of its casino industry, which has often been cited as one of the reasons why foreign capital, tourists and visitors should avoid Cambodia in the first place.

Cambodia is ignominiously put on FATF’s grey list, and it has been struggling to win international appreciation, something that is rapidly changing under its current government. A crackdown against illegal gambling operations is unfolding under the stewardship of the country’s Prime Minister, Hun Sen.

According to Vann, the new rules make it impossible for hiding cash as there will be check-and-balance practices to ensure that regulators, operators, inspectors, and relevant stakeholders operate by the letter of the law. In a statement for the media, Vann explained:

"None of them can exploit anything in the gambling business operations, while the casino party would not be able to cheat the gamblers and the gamblers would not be able to cheat the casino."

Cambodia is also keen to buff its tarnished reputation, arguing that a five-year grace period will be now granted to casinos before they are required to change their venue qualifications to "commercial gambling," and especially on visible signage.

This is aligned with the country’s ambition to overhaul these places as entertainment centers rather than gambling dens where seedy characters get together to engage in nefarious and duplicitous affairs. Vann explained that the grace period is necessary as casinos cannot alter their status right away because of legal aspects and internal agreements.

The latest set of rules now implemented by Cambodia’s Ministry of Economy and Finance (MEF) are designed to replace the lump sum system with a more relevant one that will focus instead on gross gaming revenues, as many industry specialists argue is better for both businesses and the government.

The additional effort to bolster the fairness and integrity of the industry is definitely not wasted on a country that has been dealing with a major reputational crisis abroad. Thing is, Cambodia has been actively remedying the situation over the past months, with no shortage of political will for change.

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