Types of Online Casino in Cambodia. The government of Cambodia and the whole country have benefited a lot from gambling. First of all, it is a large cash flow to the state’s treasury that helps the local economy to achieve new results.
Gambling in Cambodia is officially illegal under the 1996 Law on Suppression of Gambling, which outlawed all unauthorized forms of gambling and provided for penalties ranging from monetary fines to short prison sentences, although the Cambodian government's General Department of Prisons does not list gambling as one of the 28 offenses punishable by imprisonment.[1]
The prohibition on gambling, which also extends to all forms of online gambling, only applies to Cambodian citizens. As of October 2015, there were 75 casinos catering to foreign tourists operating within Cambodia, providing an estimated US$29 million in revenue to the national government in the first nine months of the year and $2 billion in income for the casinos. Cambodian citizens are allowed to gamble through government sponsored gaming including five separate privately run national lotteries.[2] Cambodians were also previously permitted to play the slot machines located in the nation's casinos, however due to complaints of violence related to gambling debts and widespread problem gambling, slot machines were banned in 2009.[3]
Gambling as a popular pastime is ingrained in Southeast Asian culture in general and Cambodian culture in particular. Men who don't gamble are often viewed as not masculine.[4] Consequently, despite the laws against citizens gambling, illegal gambling is widespread in Cambodia. The police forces in Cambodia, ruled by one of the most corrupt governments in the world,[5] often look the other way as casinos freely allow locals to enter and provide private rooms for government and law enforcement officials, who oftentimes have a vested financial interest in the casinos, to conduct illegal gambling.[6] Extralegal activities are also widespread outside of the permitted casinos ranging from cockfights and card rooms to sports book (primarily regional football matches and kickboxing) and unauthorized lotteries. Most of these activities are controlled by organized crime and protected by bribes to law enforcement.[7]
A number of societal issues plague Cambodia as a result of gambling, most notably gambling addiction.
Casino industry[edit]
Gambling is illegal in all of the countries sharing borders with Cambodia. Communist governments in Vietnam and Laos ban gambling and the strict Buddhist cultures of Thailand and Myanmar also prohibit gaming.[3] Beginning in the late 1990s, Cambodia has been building a casino industry to capitalize on this, constructing casinos in border towns and popular resort areas and enticing foreign gamblers while officially prohibiting its own citizens from entering. In border towns such as Poipet, O Smach and Bavet there are 'casino strips' between border checkpoints so that foreign nationals may cross the border to gamble then return home without officially passing through the Cambodian checkpoint, thereby eliminating the need for visas. In popular tourist resort areas, such as Koh Kong and Sihanoukville, casinos are open to anybody with a foreign passport and the largest casino in the country, Phnom Penh's Naga Casino, which has exclusive gaming rights within a 200 kilometer radius of the capital, has plans to operate a charter service to fly in wealthy customers from China.[3]
Cambodia's casino industry continues to grow. In 2011 US$20 million in tax revenue was generated.[6] In 2014, 57 casinos provided an estimated $25 million in revenue to the national government,[3] while in the first nine months of 2015, 75 casinos, with ten new establishments licensed in the third quarter alone, were responsible for $29 million in government revenue and $2 billion in income for casino owners, most of which are foreign investment companies.[8]
Social issues[edit]
Cambodians often cite an old Khmer proverb lbaeng taeng vineah (Khmer: ល្បែងតែងវិនាស), 'Gambling always destroys (life)',[4] which reflects the variety of social problems revolving around gambling from which Cambodia suffers, including crime related to illegal gambling and repayment of debts, domestic disputes and, destructive gambling addiction which is a huge problem in Cambodia.[9][10] Despite the official prohibition on citizens partaking in any form of unauthorized gaming, gambling is a significant part of Cambodian culture. Gambling, usually in the form of card or dice games, is traditionally only socially acceptable during the weeks surrounding New Year celebrations. However, gambling continues year-round at every opportunity, in underground card houses, lotteries (both legal and illegal), sports book, online gaming, through unlawful entry into the casinos or even impromptu games on work breaks; there is even a game called chak teuk phliang in which Cambodians will bet, sometimes up to US$1000, on when and how much it will rain.[9][4][10]
A foreign passport is required to enter a casino in Cambodia, providing a loophole that allows the many urban Cambodians with dual citizenship to legally gamble. The rural population and those that can't produce a foreign ID must bribe the local police to gain entry to legitimate casinos. Gamblers leaving casinos or other, less formal, illicit gaming venues have reported being forced to give up to two-thirds of their daily winnings to police in order to avoid arrest when caught.[10]
There are little to no psychological services available to those addicted. Among Cambodian men, gambling, along with drinking and other such vices, is seen as a symbol conveying masculinity.[4] Cambodian society has traditionally viewed problem gambling as a social problem rather than a medical problem, consequently, very few seek treatment from medical professionals. As of 2012, the nationwide treatment program, Transcultural Psychological Organisation, reported treating patients for disorders such as depression and drug addiction but had not treated a single patient for gambling addiction.[9]
References[edit]
- ^Keo, Chenda; Broadhurst, Roderic; Bouhours, Tierry (2011). 'Inside the Cambodian Correctional System'. British Journal of Community Justice. 8 (3). Retrieved 14 October 2015.
- ^Hor, Kimsay (22 January 2015). 'Lottery firm hopes that second bet is a charm'. The Phnom Penh Post. Retrieved 14 October 2015.
- ^ abcd'Casinos in Cambodia: When the luck runs out'. The Economist. 23 October 2014. Retrieved 14 October 2015.
- ^ abcdSynoda, Sokhan (2015). LIFE OUTSIDE OF THE HOME INTERROGATING MEN'S UNDERSTANDING OF THEIR ROLES IN CAMBODIA. University of Wellington.
- ^Cuddy, Alice (2 June 2015). 'Rule of law rank near bottom'. The Phnom Penh Post. Retrieved 14 October 2015.
Cambodia has again scored dismally in an annual index released today ranking the rule of law in 102 countries, placing 99th overall and the worst in the region.
- ^ abNorodom, Princess Soma (17 August 2015). 'Gambling a losing game'. The Phnom Penh Post. Retrieved 14 October 2015.
- ^Ayuthya, Den (5 July 2015). 'Provincial Police Chief Orders Crackdown on Illegal Gambling in Southwest Cambodia'. Radio Free Asia. Retrieved 14 October 2015.
- ^May, Kunmakara (1 October 2015). 'Ten More Casino Licenses Granted'. Khmer Times. Retrieved 14 October 2015.
- ^ abcWill, Rachel (5 October 2012). 'Scant options for gambling addicts'. The Phnom Penh Post. Retrieved 14 October 2015.
- ^ abc'CAMBODIA: Gambling fuels poverty'. IRIN Humanitarian News and Analysis. 2 September 2008. Retrieved 15 October 2015.
Cambodian Online Casino Spam Slots
External links[edit]
In an attempt to revitalize the lucrative business, the Cambodian government has voted to lower the corporate tax rates on casinos operating domestically. This strategy will reform the infrastructure of the gambling economy in the country and could pave the way for a much broader and diverse pool of interested international operators in the country.
There are plenty of reasons the integrated casinos in Cambodia can look at the future with optimism, after lowering the tax rate and raising the ceiling on license-period caps it is profitable time to be in the business. ©pasja1000/Pixabay
To make the departmental wished into a piece of actionable legislation, the Cambodian government announced a new Law on the Management of Commercial Gambling. This 97-page document holds all the details of the specific changes been constructed onto the tax rates and regulatory requirements. Included in the legal changes is a new government agency charged with overseeing the gambling industry. Up until now, a disorganized and ad-hoc approach was employed to govern casinos in Cambodia.
The man in charge at the Ministry of Economy and Finance has commented saying the changes to the gambling law infrastructure are designed to make the sector more competitive. It seems as if this draft of organizational changes is tailored to lure in larger corporate casino brands from international markets, rather than just the small business dynasties that standalone in the Cambodia gambling industry at this current time.
It’s very clear that from these legal changes in Cambodia, the country is bringing together an ecosystem of integrated resorts. These transformative plans will of course generate new revenue streams for the cash-strapped administration, with the majority of that money coming from overseas clients visiting the Cambodian territories on business and pleasure. This tried and tested business model has paid dividends across Asia before, but in the age of the pandemic where crossing over borders is not as simple, this poses a risk to the cash generation KPIs that these projects are so obsessed about.
Cambodia Already has 93 Licensed Casinos
The over-saturated casino sector in Cambodia is home to over 93 land-based casinos. Many of them exist around the coastal cities such as Sihanoukville and serve visitors from China and other neighboring countries. The business model is designed in such a way that local residents are not allowed to enter these venues. As the tax cash generation scheme would only be profitable if it involves the balance of payments equation being positive.
Under these new set of gambling laws, the integrated resort style casinos will only pay a 4% tax rate on their gross gaming revenue, GGR. This is slightly less than the existed standalone casinos that pay 7% on GGR. Moreover, the integrated resort casinos will be able to apply for much longer licenses from the government, with the upper limit set at 20 years. This is considerably better for long-term security in an investment sense and is in stark comparison to the 5-year limit placed on standalone casino venues.
So the system has clearly been set up to benefit businesses looking to construct much more wholesome gambling experiences. Most of the companies around the world capable of financing such a huge investment are those based in Las Vegas and Macau. It won’t be long before one of these large conglomerates picks up on the business opportunity beginning to present itself in Cambodia.
NagaCorp Has Exclusive Rights
Under a longstanding agreement with the Cambodian Finance ministry and other relevant authorities, the locally owned NagaCorp casino will have exclusive rights to operate around the tourist-heavy Phnom Penh region until the end of 2045. This incredibly long period will certainly allow the casino to solidify its market dominance and potentially lock-up the entire market from external competition. Given this huge financial security held by NagaCorp, the firm has decided to expand their balance sheet, and begin constructing an enormous integrated resort complex near the capital city at an eye-watering cost of $3bln.
The overall objective of all of these sweeping gambling law reforms is of course to generate greater interest in the region from overseas clients. If all goes to plan the changes are forecasted to generate upwards of $100 million in extra earnings for the government tax coffers. But with the pandemic still raging and affecting casinos licenses in Macau, the free flow of people between countries will be an essential prerequisite to the business moving forward.
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