Cambodia

Legal Landscape

Cambodian gaming industry is a complicated affair. The market has far outgrown the outdated regulations that the country has been using for the last two decades. There are certainly gray areas and inadequate laws in dire need of revisions. The Law on the Suppression of Gambling introduced back in 1996 is still in effect, banning all gambling-related activities, but only for the residents of the country. Tourists, mostly from Thailand and Vietnam, can and do enjoy games of chance all throughout Cambodia in various land-based facilities.

However, the ban doesn't stop the locals from visiting the country's 75 brick and mortar casinos or seeking the services of foreign online operators in any way they can. Despite the threat of high fines and even imprisonment, Cambodians gamble often and seem to like betting on sports and blackjack best. The Government has recently started working on a new legislation which should address online gambling, as well as licensing and taxes in the sector.

Licenses for Domestic Companies Only

The current laws do not directly prohibit internet wagering; however, it is considered illegal anyway, since all other forms of gambling are strictly outlawed. In accordance with this, Cambodia doesn't have an official gaming commission or licensing system established, and restricts foreign online casinos entirely, so offshore companies cannot apply for permits here.

In 2015, only state-owned casinos were granted licenses to start offering online platforms for an annual fee of  $10,000. But there is a catch: customers can only access internet games from within the physical premises. It is not entirely clear which conditions need to be fulfilled to get the permit, but it seems they negotiated on a case-to-case basis. What made the country invest into brick and mortar enterprises and gaming tourism are substantial income taxes and revenue generated by the industry.

Upcoming Gaming Bill

In 2014, Cambodia announced plans to draft a Gaming Law and establish a Gaming Management Committee to oversee and direct all activities on the market. With illegal wagering, gambling addiction and money laundering on the rise, the authorities admitted the need for a more efficient legal framework. The new legislation will cover taxation systems and revenue collection, management procedures and consumer protection. Emphasized is the goal to preserve and develop the Cambodian gaming and tourism industry until it becomes one of the main entertainment centers in East Asia.

The Gaming Law should be completed sometime in 2017, although nothing is certain for now. The authorities are currently studying online markets in other countries for input and ideas as to what should be done. What is certain is that the country has no intention of opening the borders to foreign operators anytime soon. Both online and land-based gambling will remain off-limits for the residents. What's more, even harsher measures will be implemented to clamp down on illegal wagering: a central computer server to monitor all transactions being one of them.