Cambodias gaming sector has faced difficulties throughout the initial six months of this year. Although the administration has endeavored to revitalize tourism and associated enterprises, the national treasury hasn’t witnessed a substantial return from legalized wagering.

Statistics from the Ministry of Economy and Finance’s Commercial Gambling Committee (CGCC) depict a dismal situation: a mere 20 out of more than 200 authorized casinos (those granted licenses in 2021 or afterward) are presently functioning. This has yielded a meager 8% tax revenue collection compared to initial projections outlined in the national budget.

To illustrate the situation, the government had aspired to amass a significant 1.742 trillion riel (approximately $435.5 million) from casino levies.

The sluggish post-pandemic resurgence and the limited influx of tourists – particularly from neighboring Thailand and Vietnam, where borders have only recently reopened – are the primary factors behind this decline.

Ros Phearun, Undersecretary of State at the Ministry of Economy and Finance, highlighted that while domestic tourism is rebounding, international tourism, upon which the casino sector heavily depends, is trailing behind. This is especially apparent for casinos situated near the border, which are only just beginning to recuperate.

Furthermore, the Law on the Management of Integrated Resorts and Commercial Gambling (LMCG), implemented in November 2020, stipulates yearly license renewals for casinos. This additional layer of administrative procedure might be another element contributing to the industry’s slow revival.

Prime Minister Hun Sen’s trusted associate, Pan Sorasak, stressed that the recently implemented gaming legislation will be overseen by the Cambodian Gaming Management Committee (CGCC). He further indicated that among the more than 200 casinos that were previously licensed, 129 have submitted renewed applications this year in accordance with the updated regulations, with the CGCC granting approval to 13 thus far.

This development follows a significant decrease in visitors to Cambodia. During 2021, the nation welcomed a mere 1,964,95 international travelers, a stark difference compared to the 13,061,43 recorded in 2020.