INDOCHINA 28
cambodia
Government means business with online ban Cambodia’s online gaming ban, which came into effect as of Jan. 1st, has triggered mass layoffs and the shutdown of numerous casinos, and is not expected to be lifted due to pressure from the Chinese government.
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rime Minister Hun Sen announced said Danny Too, general manager of Cherry the crackdown in August last year Interactive. “Before that meeting took place, after rampant expansion of the online many non Chinese operators were still clinging gaming industry, particularly in the onto some glimmer of hope that they can coastal town of Sihanoukville, led to soaring continue to operate and relocate under the protection of some prominent companies.” crime rates and rising prices for locals. The online gaming ban has placed a At the time, the announcement was made, Beijing had made its displeasure at online gaming major question mark over the viability of operations targeting Chinese nationals clearly Sihanoukville as a gaming hub, at least in the known through an unusual statement through short term. The rampant and uncontrolled its embassy in the Philippines. Manila has moved construction that had been taking place has to tighten regulation on its industry, but it has caused untold environmental and social not followed through on an outright ban like damage, ruining the town’s prior reputation Cambodia, whose economy is more heavily reliant as an unspoiled beach haven. Without the online on Chinese investment. revenue, many of the According to Camboland-based casinos will dian government figures struggle given the limited from last September, there The fact is tourism footfall. were estimated to be about many casinos “The fact is many ca61 casinos operating in have closed and sinos have closed and not Sihanoukville out of a total the small operators,” of 133 across Cambodia. not just the small just said Dominick Stenson, About 46 percent of all new operators. casino director at Queenco license applications had Casino. “The ban has hit been centered on the town. those that were very much Ros Phirun, deputy reliant on online business director general of the Ministry of Economy and Finance, said as of supporting their offline live game business.” “Many online/offline operators could early January that number had shrunk to 56 operating casinos, with no new applications afford to be very generous with their offers pending, Nationwide there are now thought to to their live game players, who were in a large part online agents, construction workers and be about 118 properties in operation. In terms of online operators in Sihanounkville, related affiliates, as they fed and grew the experts estimate up to 200 may have been active lucrative online business.” “The previous model, although lucrative prior to the ban. Local media has reported more than 7,000 workers have lost their jobs, with for everyone who had a stake in the dramatic many seeking to return to nearby factories, while rise, was unsustainable.” The government, with help from China, rental values and property prices have tumbled. “On 30 December 2019, all the online has pledged investment to upgrade the town’s gaming operators were asked to have a meeting sorely lacking infrastructure, including $300 with the Ministry of Interior of Cambodia. million alone to rebuild roads. Construction During that meeting, all the operators were is progressing on a new highway linking told very clearly that there will be no more the capital with Sihanoukville, improving online gaming starting from 1 January 2020,” access to the resort.
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Asia Gaming Briefings | January 2020
It also plans to upgrade sewerage and drainage systems. “ The push to complete the major infrastructure changes are ruthlessly underway,” Stenson says. “The necessary road construction and drainage solution is taking no prisoners, on many occasions at the expense of small businesses who have seen their access completely blocked and with no alternative but to shut up shop and wait until it’s finished. Many casinos have seen their driveways and parking halved to accommodate the road widening.”
