Cambodia’s Gaming Industry Struggles to Recover Post-Pandemic

Cambodias gaming sector has experienced a challenging period throughout the initial six months of the current year. Despite governmental endeavors to revitalize tourism and associated economic endeavors, the actual financial gains derived from legalized gambling have proven underwhelming, as per information released by the Commercial Gambling Committee (CGCC) operating under the jurisdiction of Cambodias Ministry of Economy and Finance.

Consider this: out of a total exceeding 200 casinos granted licenses since 2021, a mere fraction – a mere 20 – are presently operational as of June 2023. This has resulted in tax receipts barely surpassing 8% of the initial projections outlined in the national budget. To provide context, the Cambodian administration had aspirations of amassing a substantial 435.5 million US dollars from this particular sector.

The contributing factors to this downturn are readily apparent: the post-pandemic economic resurgence has progressed at a slower pace than anticipated, and the region has not witnessed the anticipated influx of tourists. As articulated by Ros Phearun, a representative from the Finance Ministry: “Although we are observing an increase in domestic travel within Cambodia, international tourism, upon which the gaming industry heavily depends, continues to trail behind, particularly in border regions adjacent to Thailand and Vietnam that have recently reopened.” In essence, with a reduced number of tourists, especially from neighboring nations, casinos are encountering difficulties in regaining their footing, consequently leading to diminished tax income for the government.

Penh emphasized the Cambodian Gaming Management Committee (CGCC)’s commitment to maintaining gambling regulations. He observed that of the more than 200 licensed gaming establishments, 129 have sought license extensions this year, with the CGCC administrative body already granting 13.

This development coincides with a significant decrease in travelers to Cambodia. The Tourism Ministry documented an 85% fall in overseas arrivals in 2021 versus 2020, dropping sharply from 1,306,143 to 196,495 guests.