Cambodia experienced an impressive boost in tax revenue from casinos and game-of-chance operators in 2024, collecting $63.1 million, an 85% rise compared to the previous year. This substantial increase, reported by the Commercial Gambling Management Commission of Cambodia (CGMC), underscores the significant economic role of the gambling sector.

Tax revenue from gambling industry sees notable increase:

“Based on the figures, we can assess that the overall tax revenue from the commercial gambling sector was quite good last year,” stated the CGMC, reflecting confidence in the industry’s growing contribution to Cambodia’s economy, Khmer Times reports.

The CGMC oversaw the licensing of 195 casinos in 2024. However, maintaining regulatory oversight, the commission reported that 15 licenses expired during the year, while one was revoked and another was suspended. Similarly, in the game-of-chance sector, 21 operators held licenses, but one was canceled, and three others faced suspension. These regulatory actions highlight the government’s commitment to ensuring compliance within the gambling industry.

Gambling in Cambodia is targeted exclusively at foreign tourists, as locals are prohibited from entering casinos. According to CamNess, most casinos are strategically situated in border towns such as Bavet and Poipet or in the coastal province of Preah Sihanouk, home to the popular tourist hub of Sihanoukville. These locations are designed to cater to cross-border visitors and international travelers, particularly from neighboring Thailand and other Southeast Asian nations.

Phnom Penh, the nation’s capital, houses only one casino—the NagaWorld complex, operated by NagaCorp. This Hong Kong-listed company holds a long-term monopoly in the capital, creating a unique dynamic within Cambodia’s gambling landscape. The government has also limited new casino developments in certain areas, such as Kep and Kampot provinces, to preserve cultural heritage and focus on tourism investments that align with societal priorities. Prime Minister Hun Manet emphasized that these restrictions aim to promote other sectors, including hospitality, manufacturing, and trade, while maintaining security and order in key regions.

Challenges and opportunities in the gambling sector:

Despite its financial success, Cambodia’s gambling industry faces significant challenges. The influx of foreign investments, particularly from Chinese operators, has created socio-economic concerns, including rising property disputes, wealth inequality, and reports of human trafficking and organized crime. These issues have prompted the Cambodian government to tighten its regulatory framework to mitigate risks and maintain public order.

The CGMC has expressed interest in expanding the casino industry by developing large-scale integrated resorts. Deputy licensing director Khim Oudam stated that Cambodia aims to attract investors willing to create high-standard establishments similar to the NagaWorld complex. By encouraging the development of such resorts, the government hopes to further elevate the industry’s reputation and appeal to a wider range of international visitors.

While many of the country’s casinos are considered small-scale, the government remains optimistic about the potential for long-term growth. The CGMC’s ongoing initiatives to improve compliance, offer investor-friendly tax policies, and focus on developing premium gaming resorts are steps toward achieving a more sustainable and robust gambling sector.