The ban on online gambling in Cambodia is expected to make a significant cut in the expected tax revenue for 2020. This year the Cambodian government collected about $50 million in tax revenue from casinos. However, the figure will not be repeated in the next fiscal.
Cambodia’s Finance Minister Aun Pornmoniroth has pointed out that the tax revenues are likely to decline due to the online gambling ban.
Khmer Times reports that while discussing the 2020 budget with Pich Sros, president of Cambodian Youth Party and a member of the Supreme Consultative Council Mr Pornmoniroth said that casinos accounted for $50 million in total tax revenue respectively in 2018 and 2019, but will decrease next year because online gambling has been banned in the Kingdom.
“We received considerable tax revenue from the casino industry. For instance, the ministry collected $50 million in 2018 and it is the same amount in 2019, but it will drop in 2020 because online gambling is banned,” he said.
“The ministry needs Chinese investment, except for online gambling. The ministry will work out a new system, which is the master plan and an economic hub for Preah Sihanouk province in order to attract scrupulous Chinese investment.”
Earlier in August, Cambodia announced a ban on online gambling. A directive signed by Prime Minister Hun Sen banning online gambling read: “The Royal Government of Cambodia will stop the issuance of online gambling policy and licenses, both within and outside of the Kingdom of Cambodia, from the date of signing this directive.”
The online gambling ban in Cambodia triggered a mass exodus of Chinese nationals who were predominantly involved in the country’s gambling industry.
According to the estimated figures released by the Cambodian Ministry of Interior, about 120,000 Chinese nationals have left the country since the online gambling ban was officially announced. The Ministry said that about 6000 Chinese nationals have been leaving Cambodia every day since the ban was declared.