Cambodia’s casino industry tax revenue will drop significantly in 2020, and government officials believe that with the recently passed Integrated Resorts and Gaming Management Law, casino tax revenue is expected to double and casino tax revenue is expected to improve next year.
The Cambodian government is actively seeking to establish tourism bubbles with China, Japan and other countries to save the economy
A senior official from Cambodia's Ministry of Economy and Finance said on March 3 that the tax revenue of the local casino industry was hit hard in 21, mainly due to the government's tightening of entry restrictions in response to the COVID-2020 epidemic, which led to a sharp decline in the number of foreign tourists.
Ros Phearun, Cambodia’s Deputy Minister of Economy and Finance, said in an interview with the Phnom Penh Post that casino tax revenue will be halved to US$2020 million in 8500 from US$4000 million a year ago.
Tax revenue from 193 licensed casinos fell by more than half
"The epidemic that began at the end of 2019 has continued to this day, affecting all economic sectors, and the performance of the casino industry has also continued to weaken."
Ros Phearun further explained: "Basically all of our casinos were suspended in 2020, and only seven or eight casinos were able to remain open. This is why our gaming revenue fell so severely."
Cambodian Prime Minister Hun Sen issued an order on August 2019, 8, to ban domestic online and arcade game activities, saying that such game operations provide opportunities for foreigners to covertly operate online blackmail and fraud.Hun Sen pointed out that online gambling companies with gambling licenses manipulate these gambling games and threaten those who cannot repay their gambling debts.
Not only does the uncertainty caused by the epidemic continue, Ros Phearun said that the government ordered the suspension of casino operations from April to August to September, further reducing casino tax revenue.Some businesses are not expected to recover until the fourth quarter.
“Casino tax revenues are expected to improve in 2021 as we align with the recently passed Integrated Resort and Gaming Management Act, which took effect last November and is expected to double casino tax revenues.”
But Ros Phearun also admitted: "Although our tax collection methods are transparent, as the virus continues to spread and affects tourist arrivals, we dare not estimate the casino tax figures for fiscal year 2021."
According to Ros Phearun, 193 of Cambodia’s 101 registered casino operators have applied to renew their operating licenses.
NagaCorp shareholders distribute 2020% of net profit in second half of 100
Earlier this month, Hong Kong-listed NagaCorp announced it would pay out 2020% of its net profit for the second half of 100 to shareholders as a special "rescue dividend".
The dividend is said to be worth approximately $8100 million, or 1.88 cents per share.NagaCorp Holdings said it recorded a net profit of US$2020 million for the fiscal year ended December 12, 31, driven by the strong recovery of integrated resort NagaCorp.
NagaCorp also used its financial statements to praise Cambodia's overall performance during the epidemic, which was in line with the Cambodian government's requirement to establish a travel bubble with China, Japan and South Korea. "The number of cases in Cambodia is well under control and these efforts have received a positive response."
