Cambodia Gains $37.4 Million in Casino Tax Revenue

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Tax revenue from Cambodia’s casinos increased significantly in the first nine months of the year when compared to the same period of 2015, the country’s Ministry of Economy and Finance reported. There were 69 licensed gambling venues of this type to operate within Cambodia’s borders as of September 30.

Local casinos contributed the total amount of $37.4 million in tax revenue for the nine-month period ended September 30, 2016. The figure posted represented a 35.5% increase from the tax revenue collected for the same period of the previous year. It also reflected a rise from the $34.7 million the Finance Ministry reported for the year ended December 31, 2015.

 

The increase in the amount collected was attributed to a strategy Cambodian government launched in 2015. The initiative was described by the country’s top officials as one that aimed at improving casino proceeds by implementing measures for better transparency and efficiency of the local tax system. Enhanced tax collection monitoring efforts were also included into the newly introduced strategy.

Cambodian residents are banned from playing at local casinos. With that said, the foreigners-only gambling facilities have turned into a major draw for international tourists. This is why a serious portion of the local casinos are located in border areas where gambling customers from neighboring countries can reach these with minimum effort and travel costs.

 

According to the latest figures reported by Cambodia’s Ministry of Economy and Finance, NagaWorld was the biggest casino tax contributor over the reviewed nine-month period. The gambling venue generated around $16 million in tax revenue during this year’s first three quarters or 43% of the overall figure posted.

Hong Kong-listed casino operator NagaCorp owns Cambodia’s glitziest gambling facility, which is part of the larger NagaWorld Hotel & Entertainment Complex, located in Phnom Penh. The company said in a filing to the Hong Kong Stock Exchange that the NagaWorld casino had generated income tax of $16.4 million in 2015.

 

Apart from casino tax revenue, owner NagaCorp was also recently required to pay $9.4 million in tax on non-gambling options offered at the entertainment complex. According to media reports, Cambodia officials may address the casino operator with additional demands in the weeks and months to come.

 

Although the country’s government has clearly started yielding positive results from what had been described as improved tax collection and monitoring efforts, it has been reported that amendments to existing gambling regulations have been introduced and reviewed by legislators. It seems that officials are mulling a tax rate increase that would tax casino operators at between 5-7%.

To give a better picture of the tax rise proposal, NagaCorp is currently taxed at 2% of the revenue its NagaWorld casino generates.

 

source http://www.casinonewsdaily.com/2016/10/19/cambodia-gains-37-4-million-casino-tax-revenue/