Cambodia’s draft bill on the management of commercial gambling could help the country become a more appealing destination to international casino operators in the long run.
This is particularly because of its proposed low tax rate on gaming revenue and a more developed regulatory framework.
The long-awaited bill – known as the Law on the Management of Integrated Resorts and Commercial Gambling (LMIRCG) – was approved by Cambodia’s national assembly last week, and is now to be reviewed by the country’s senate.
The draft law sets a minimum capital requirement for investment in a casino project, and designates which areas in the country will be allowed to offer commercial gambling, according to media reports.
The draft law could pave the way to attract investment from international casino operators to Cambodia’s tourism and gaming markets, said two separate industry observers.
The new bill proposes the introduction of a gaming tax of 4 percent on the VIP segment and of 7 percent on mass-market gross gaming revenue (GGR), according to notes from industry investment analysts and media reports.
The draft law is also set to “encourage” casino resorts to be developed in areas where the Cambodian government aims to spur tourism growth, “specifically the beach communities,” suggested casino industry consultant Andrew Klebanow.
Cambodia’s gaming and leisure markets are also feeling the pinch from the Covid-19 pandemic, which has disrupted the international tourism industry.