New Day in Cambodia as Modern Regulation is ApprovedPublished October 29, 2020 by Lee R
The Cambodia regulation model is adapted for modern times, with iGaming reportedly possible soon.
A new draft of a regulation model legal guideline has been approved in Cambodia, paving the way for the establishment of the market there.
Cambodia's National Assembly approved the drift law on commercial gambling management almost unanimously, by a vote of 114 votes for out of 117.
The law only requires the King's signature to boost the economy.
Government Official Speaks
National Assembly Commission chairman on Economy, Finance, Banking and Audit Cheam Yeap said the legislation is intended “to ensure management of the integrated commercial gambling centres and commercial gambling to contribute towards boosting economic growth, promoting the tourism sector, creating more jobs, collecting revenue, and maintaining social safety and security.”
Minimum investments in casinos TBD; mechanisms to prevent money laundering and terrorist funding and designated gambling areas in the country are all part of the enhanced features of the adapted legislation.
Tax and Licenses
The taxation level is expected to be at 7% GGR, with 193 licenses already issued.
To this point, the lack of law governing a gambling model in Cambodia has led to no shortage of problem gambling and illicit activities.
Cambodia previously had laws prohibiting illegal gambling, but lacked the infrastructure and enforcement body. The new legislation provides a means for Cambodia's judiciary bodies to carry out enforcement in an organized and transparent fashion.
The IR Effect
Originally endorsed in a July 3rd Council of Ministers referendum, the new draft law will further facilitate attraction of large investment to the country’s emerging IR program.
IR Tax Breaks
The licensees meeting the requirements to convert to IR status will have more specific tax guidelines of 7 percent of GGR on mass players and 4 percent of GGR on VIPs.
Casinos will be barred from within 200 kilometers of Cambodia's capital Phnom Penh, with locals prohibited from gambling in the casinos.
The iGaming market was not yet addressed, and falls outside of draft legislation, but the impact of Covid-19 on revenues is reportedly accelerating consideration of specific iGaming regulations as well.