The Prime Minister of Cambodia, Hun Sen, last week reiterated his commitment to ban online gambling in early 2020. He said that his country’s thriving digital gambling sector has brought more bad than good to local economy.
News about the online gambling ban first spread in August when local media outlets reported that Cambodia’s top official had ordered in a directive signed by him that all online gambling operators licensed in the country should close shop by the end of the year.
Prime Minister Hun Sen had also told responsible ministries and government agencies to stop issuing new online gambling licenses. The official later explained that the country should reduce its reliance on its online gambling sector and should instead focus on developing a tourism product around its natural and cultural heritage that would have a much more positive economic impact.
Speaking at the opening of the 8th Sea Festival in the Cambodian province Kampot this past Saturday, Prime Minister Hun Sen reiterated his commitment to bar online gambling activities from being conducted in the country.
Cambodia’s licensing system, which very much resembles that of the Philippines, has for years enabled mainly Chinese businesses to open shop in the country and provide remote gambling services. Under the terms of their licenses, they were not supposed to service Cambodian customers, but a number of gambling operators were found to have violated that rule.
Concerns Over Gambling Ban’s Economic Impact
The Prime Minister’s online gambling ban has prompted concerns that the departure of Chinese gambling companies would hurt Cambodia’s economy as the country would lose some of its big investors.
However, the nation’s top official said Saturday that the economy would suffer even more if he allows online gambling to continue to dominate it. The Prime Minister went on that the remote gambling industry poses a threat to Cambodia’s security and reputation.
He elaborated that online gambling is often associated with money laundering and that he does not want his country to become a money laundering heaven.
Prime Minister Hun Sen said over the weekend that the implementation of the online gambling ban would take place within days.
In his August directive addressing the matter, the official said that “some foreign criminals have taken refuge in the form of [online] gambling to cheat and extort money from victims, domestic and abroad”
The Prime Minister said over the weekend that the decision for the prohibition of online gambling was made after “careful and extensive analysis” had been conducted.
The official also pointed out that the real estate sector was the only one that benefited from the country’s booming iGaming industry. But he encouraged real estate owners to use their properties for other purposes.
According to Kim Heang, president of a local real estate company, the online gambling ban would hurt the real estate sector but only in the short-term. However, he said that the decision for barring online gambling activity was a good one as it would prevent money laundering, anarchy, and other crimes.
He said that he expects short-term negative effects on hotels, land-based casinos, and guesthouses, but the sector would improve gradually. Mr. Heang likened an online gambling economy to a bubble – “it rises for a while before bursting.”
Source: Gov’t to bar online gambling
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