Cambodia imposes slot machine ban

11 December 2008
Casino City Times

PHNOM PENH, Camboidia -- As reported by The Phnom Penh Post: "The government has ordered all slot machines at entertainment clubs to be removed, but will allow them to remain in many of the Kingdom's hotels, saying the change will improve security and public order.

"According to a directive signed by Prime Minister Hun Sen on December 2, 'the government has agreed in principle to open entertainment clubs equipped with slot machines at hotels in cities and some provinces.'

"To control abuse, the government will require companies running slot machines to get licences from the Ministry of Economy and Finance, and only hotels that have certifications from the Ministry of Tourism will be allowed to house the machines, the new law stipulates.

"If a company refuses to move their machines into hotels within six months, the ministries of the Interior and Economy will withdraw their licenses.

"The prime minister's directive clearly reiterated that Cambodians are not allowed to go to an area designated for slot machines, adding that if this law is broken, the offending company's license will be immediately withdrawn..."

Hun Xen's Cambodia may not have an anti-corruption law ... but it will soon enact formal casino legislation

Cambodia Prepares Formal Casino Legislation

12/09/2008
James Kilsby
GamblingCompliance

Cambodia’s newly re-elected government will enact formal regulations for the country’s coveted casino sector once it takes office later this month, a senior official at the Cambodian Ministry of Economy and Finance has announced.

Chea Peng Cheang, Secretary of State for Cambodia’s Ministry of Economy and Finance, told delegates at this week’s Asian Casino Executive Summit in Singapore that the Cambodian People’s Party’s recent election victory would boost the country’s casino industry, adding that the new government would soon look to submit the sector to formal regulation for the first time in order to foster further growth.

“Our policy is still to develop the gaming industry in Cambodia,” Secretary Cheang said. “A new law on casinos has been drafted and I hope to submit it to the National Assembly soon after the new government comes in towards the end of September.”

Cambodia has issued licences to a total of 27 casinos, primarily situated near the country’s border with Thailand – where casino gambling is illegal. Cheang said the Cambodian government expects to receive total tax revenues of US$18m from its casino industry in 2008 – up from US$16.6m last year.

However, the Cambodian government has yet to pass any formal casino legislation in order to regulate the growing sector. An official at the Ministry of Economy and Finance explained to GamblingCompliance that the new legislation would facilitate the collection of casino taxes, as well as ensure that Cambodian casino operations conformed to international regulatory standards.

Hong Kong-listed NagaCorp is Cambodia’s largest casino operator, reporting profits up 26 percent to US$25.5m for the first half of 2008, according to a recently released results statement. NagaCorp has an exclusive licence to operate a casino within the Cambodian capital of Phnom Penh, although it recently hinted that it would be willing to offer a sub-concession to another operator for gaming within the city.

Cheang suggested that such a sub-concession would likely not prove possible under the terms of NagaCorp’s licence, however. “Under their agreement, NagaCorp is the exclusive operator [of casinos] within 200km of Phnom Penh,” he said.

Cheang added that government’s primary objective would be to use casinos in order to develop infrastructure in the Thai border region rather than authorize inner city gambling venues. But he nevertheless hinted that the government was also prepared to introduce a resort casino in order to attract tourists from further afield.

“Border casinos – that is the government’s main focus, rather than casinos in the city,” Cheang told delegates. “But the next phase will be focus on a destination casino in Cambodia that will attract international visitors.”

It has been rumoured that the Cambodian government may be preparing to offer a casino licence in Siem Reap, the city situated near the Angkor Wat temple that attracted four million foreign visitors last year. If so, the licence would be likely to attract significant international interest, industry insiders say, but only provided an appropriate regulatory structure is put in place first.