The latest report from the Cambodian Ministry of Finance shows that the gambling tax revenue reached 156 billion riels (approximately 40 million US dollars) in the first half of 2025, a year-on-year increase of 55.2%, achieving 71.9% of the annual tax revenue target, with a significant growth rate. According to the Secretary-General of the Commercial Gambling Committee, Robi Len, the growth mainly stems from some casinos paying off historical arrears and tax payments after annual audits. Looking back at 2024, the gambling tax revenue reached 254 billion riels, a significant increase of 85% year-on-year, setting a new high in recent years.
According to the ministerial order issued by Cambodian Deputy Prime Minister and Minister of Finance, Vong Bunmoniroth, all commercial gambling companies—including casinos and lottery institutions—must fulfill tax obligations on par with other businesses, reporting monthly and annually, and paying a minimum tax of 1% and a value-added tax of 10%. The Ministry of Finance particularly emphasizes that casinos must report and pay taxes to the General Department of Taxation based on the gross gambling revenue (GGR) monthly to ensure industry compliance. The gambling industry is becoming an important source of government fiscal revenue.
Industry Chain Extension and Economic Illusion
Beyond the tax contributions of the gambling industry, it has also driven the development of hotels, catering, transportation, and other related industries in places like Sihanoukville, Poipet, Phnom Penh, and Kampot, attracting cross-border tourists and injecting foreign exchange into the local service industry, while creating certain job opportunities. However, behind this prosperity lies structural issues: many positions are severely mismatched with skills and wages, the industry is highly dependent on external tourists and policy environments, growth lacks sustainability, and the industry chain is prone to break once the source of customers decreases or regulations tighten.
Social Stigma and Governance Challenges
Despite the fiscal benefits brought by the gambling industry, it has long been troubled by negative labels in Cambodian society. Some casinos have been suspected of being hotbeds for money laundering and telecommunications fraud, attracting international attention. Although the law prohibits Cambodian citizens from participating in gambling, underground gambling still exists widely, becoming a hidden danger in social governance. Public opinion often links the gambling industry with corruption and gray industries, further deepening public prejudice, making it a prominent contradiction between fiscal growth and social perception.
Regional Competition and Loss of Advantage
Cambodia once enjoyed a locational advantage due to the strict prohibition of gambling in Thailand and Vietnam, attracting a large number of cross-border gamblers. However, as Thailand pushes for the legalization of casinos and Vietnam pilots the opening of gambling to its citizens, Cambodia's traditional customer base faces the risk of diversion. Regional policy changes are gradually eroding its exclusive advantage, and if not effectively addressed, the gambling industry may face challenges of shrinking customer sources.
Future Development: Seeking Balance Between Desire and Prejudice
To Cambodia, the gambling industry is like a "double-edged sword": it is a significant support for current fiscal growth but also comes with social risks and reputation disputes. The future may develop in two directions: one is to continuously strengthen industry regulation and transparency, controlling risks derived from money laundering and illegal gambling; the other is to promote the integration of gambling with tourism, entertainment, and other industries, reducing reliance on a single tax source and reshaping the industry image.
According to the Ministry of Finance's forecast, affected by the temporary suspension of some gambling company licenses, the completion rate of gambling tax revenue for the full year of 2025 is expected to be 98.9%, or slightly below the annual target of 286 billion riels. Whether Cambodia can find a sustainable balance between "fiscal desire" and "social prejudice" will determine whether the gambling industry continues to act as an economic engine or remains on the edge of policy and controversy for a long time.
