The gross gaming revenue (GGR) tax of Cambodia is 7% for mass gaming and 4% for VIPs, far lower than Thailand's proposed 17% and Macau's 40% effective tax on casino GGR.
Cambodia is striving to advance its casino sector by encouraging the development of world-class integrated resorts (IRs) and adopting appealing policies, including competitive tax incentives.
According to Khim Oudam, the deputy director of licensing at the Commercial Gambling Management Commission (CGMC) of Cambodia, these measures are part of a broader effort to enhance the country's appeal to investors and tourists alike.
At the Global Gaming Expo (G2E) Asia 2024 in Macau, industry leaders highlighted Cambodia’s relatively low gross gaming revenue (GGR) tax rates as a key competitive advantage.
The gross gaming revenue (GGR) tax in Cambodia is “7 percent for mass market, and 4 percent for VIP,” said Khim in an interview with GGRAsia. The official pointed out that some other taxes can be applicable for corporate entities.
The GGR tax of Cambodia that is 7 percent for mass-market gaming and 4 percent for VIP gaming is significantly lower than neighboring jurisdictions. For example, Thailand’s draft bill proposes a gaming tax rate of 17 percent, while Macau imposes an effective 40 percent tax on casino GGR. This favorable tax environment is expected to attract more casino investors to Cambodia.
Cambodia’s existing casino market includes 87 operational facilities, many of which are located in border towns like Bavet and Poipet. These towns primarily cater to Thai customers. However, the country aims to expand its portfolio with more high-standard resorts akin to the NagaWorld complex in Phnom Penh. Managed by Hong Kong-listed NagaCorp Ltd., NagaWorld holds a long-term monopoly in the Cambodian capital and is a cornerstone of the nation’s casino industry. NagaCorp is currently working on the third phase of the NagaWorld project, initially budgeted at up to $3.5 billion.
However, following the economic impacts of the COVID-19 pandemic, the budget has been revised to potentially below $700 million.
To further elevate the sector, the Cambodian commission has set stringent requirements for new IR developments. According to Khim, the CGMC’s IR development department mandates a minimum capital investment of $500 million per project. In addition to casinos, these projects must include a variety of amenities, such as restaurants, shopping malls, and sports centers, to ensure a comprehensive entertainment experience.
Cambodia’s framework for managing commercial gambling has been years in the making. The Law on Management of Commercial Gambling, promulgated in November 2020, was developed after more than 15 years of research. The legislation incorporates international standards to guide the development of a modern and sustainable IR sector. Speaking at the Thai Entertainment Complex Summit in Bangkok, Khim emphasized that this legal framework positions Cambodia to capitalize on its strategic location and robust regulatory environment.
The competition in the region is heating up as Thailand considers legalizing gaming resorts, potentially as early as next year. The current draft legislation in Thailand includes provisions for casino licenses with an initial validity of 30 years, renewable for an additional 10 years. Given these developments, Cambodia is keen to solidify its position as a leading destination for gaming and entertainment.
Despite its progress, Cambodia currently has only one fully-fledged integrated resort: NagaWorld. However, Khim indicated that some existing casinos have the potential to upgrade to IR status, and there are applications under review for new IR projects. This push for development underscores Cambodia’s commitment to enhancing its gaming and tourism infrastructure.
The Cambodian government’s proactive approach to the casino industry could yield significant economic benefits. Integrated resorts are expected to generate substantial revenue, create jobs, and boost tourism. By leveraging its favorable tax policies, strategic location, and modern regulatory framework, Cambodia aims to attract global investors and position itself as a premier gaming destination in Southeast Asia.
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