Cambodia Eyes Potential to Expand World-class Integrated Resorts Market, with 87 Casinos Currently Operating

• 20 December 2024
• Property Focus
• 2310 Views

Cambodia is advancing plans to expand its casino industry by developing world-class integrated resorts (IRs) and implementing attractive tax policies to entice investors. The announcement was made on 10 December 2024 by Khim Oudam, Deputy Director of Licensing at Cambodia’s Commercial Gambling Management Commission (CGMC), during remarks to GGRAsia.

The country’s gross gaming revenue (GGR) tax stands at a competitive 7% for the mass market and 4% for VIP gaming. Cambodia’s tax rates, significantly lower than neighboring jurisdictions like Macau (40% effective tax) and the proposed 17% tax rate in Thailand, could position the country as an appealing destination for casino investors.

Cambodia currently hosts 87 casinos, primarily located in border towns such as Bavet and Poipet, catering to Thai customers. The NagaWorld complex in Phnom Penh, operated by Hong Kong-listed NagaCorp Ltd, remains the nation’s sole IR. NagaWorld is undergoing phase three of development, with past budget discussions ranging from USD 700 million to USD 3.5 billion, though recent updates suggest potential adjustments below the initial estimates.

Khim Oudam highlighted the government’s ambition to attract investors to other locations outside Phnom Penh, given NagaWorld’s long-standing monopoly in the capital. He also noted that some existing casinos possess the potential to upgrade into full-fledged IRs, and applications for new IRs are under review. The CGMC has set a minimum capital requirement of USD 500 million per IR, ensuring that these developments include casinos alongside facilities such as restaurants, shopping malls, and sports centers.

Cambodia’s regulatory framework for commercial gambling was established through the Law on Management of Commercial Gambling, promulgated on 14 November 2020 after 15 years of research.

“We tried to learn about international standards in order to implement them in Cambodia,” said Khim Oudam during a presentation at the Thai Entertainment Complex Summit in Bangkok.

As Thailand moves closer to legalizing gaming resorts, Cambodia’s proactive measures and investor-friendly policies could strengthen its position in the regional casino market. With efforts to enhance its IR offerings, Cambodia is poised to become a competitive player in the global gaming industry.

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