The Cambodian Ministry of Finance announced yesterday that some gambling venues have already ceased operation due to fear of the looming inspections that await them. Earlier this year, the country’s Prime Minister Hun Sen issued a directive that is to effectively prohibit online gambling in Cambodia after 2019 ends.
Among the reasons for the MP’s decision was the fact that some online gambling businesses provided rigged games. They also threatened unlucky customers who were unable to repay their gambling losses.
As this year nears its end and the state-wide online gambling ban looms ahead, the number of authorized gaming venues in the country has declined to 141 in early December. By contrast, Cambodia had a total of 163 licensed casinos in June before the announcement of the prohibition directive came in August.
The Finance Ministry also specified that this number has currently decreased to 136. Many of these businesses have decided to transfer their gambling operations abroad. This move could hurt the local employment rates for people working in the casino sector.
Up to 80% of Gambling Establishments Are Expected to Shut Down after the Ban
Gambling operators are not the only ones to flee the Kingdom. Many gamblers have decided to follow suit. But it could get worse once the ban officially comes into effect at the beginning of the new year.
According to Ros Phearun, who works for the Financial Ministry, the number of gambling businesses will drop even further after the ban, with up to 80% of the casinos in the country possibly shutting their doors to customers.
The Ministry representative also pointed out that operators have no other option but to shut down because the ban would cause them to rapidly lose revenue. Mr. Phearun expressed his hopes that the new year would see the closure of some of the largest casinos operating in the Kingdom.
He also said that some landbased operators that do not offer gambling services online still had shut down because their clientele was rapidly fleeing the country. They have poured massive amounts of investments only to generate smaller revenue due to the ban. This makes it impossible for operators to support their huge number of employees.
Lieutenant General Sieng Sen, who heads the Ministry’s anti-commercial gambling department, also chimed in on the matter yesterday. In his words, the number of operational gambling venues in Cambodia has dropped to 91, with 80% of the businesses ceasing to offer online and arcade games.
Inspections on Casinos Begin on January 1st, 2020
The Lieutenant General warned that inspections on compliance with the ban will start on January 1st, 2020. All casinos will be checked regardless of their size and scope of operations. Some of these online businesses operate from small apartments and rented properties. Those who violate the new rules face sanctions under Cambodian laws. Mr. Sen also stressed that the government is not bent on banishing all forms of gambling from the country.
The main objective here is to eradicate online gambling due to the negative effects it has on the population. This echoes the sentiments of MP Hun Sen, who reminded earlier this month that online gambling carries higher risks of illicit activities like organized crime, terrorism, and money laundering.
Lieutenant General Sen expressed his hopes that the ban would reduce the number of such crimes. An August report from Cambodia’s National Police indicated that as many as 250,000 Chinese citizens are employed in the country, almost half of which are based in Phnom Penh and Sihanoukville, where most of the casinos are located.
After the news of the MP’s directive, thousands of these people have fled from Cambodia. The government of China is supportive of the ban. This move will protect the interests of both countries’ citizens and strengthen the friendly relations between the two nations, said a spokesperson for the Chinese Foreign Affairs Ministry in August.
