Gambling Laws Regulation in Cambodia: An In-Depth Overview of Laws, Enforcement & Future Trends
Introduction
Cambodia has become a significant gambling hub in Southeast Asia, with a regulatory framework that has evolved to balance economic benefits with strict enforcement measures. Over recent years, the government has taken decisive steps to modernize gambling laws, curb illegal activities, and strengthen regulatory oversight. This article provides an in-depth analysis of Cambodia’s Gambling Laws regulations, key enforcement measures, and emerging trends shaping the industry in 2025.
Table of Contents
Historical Evolution Of Gambling Laws In Cambodia
The 1996 Law On Suppression Of Gambling
The foundation of Cambodia’s gambling laws was laid with the 1996 Law on Suppression of Gambling, which strictly prohibited unauthorized gambling activities. This Gambling Laws established Cambodia’s core principle: Gambling is illegal for Cambodian citizens but allowed for foreigners.
Commercial Gaming Management Law In 2020
A major milestone came in November 2020 with the enactment of the Commercial Gaming Management Law (CGML). This comprehensive legislation:
- Introduced a structured licensing framework
- Established clear regulations for casino games and betting activities
- Reinforced Cambodia’s ban on online gambling (initially implemented in 2019)
Sub-Decrees & Regulatory Updates (2021-2025)
To enhance regulatory oversight, Cambodia introduced several key sub-decrees:
- Sub-Decree No. 165 (2021): Established the Commercial Gambling Management Commission of Cambodia (CGMC)
- Sub-Decree No. 166 (2021): Imposed minimum capital requirements for casino operators
- Sub-Decree No. 102 (2022): Introduced fines and penalties for non-compliance
- 2025 Legislative Amendments: Ongoing efforts to align the 1996 Gambling Laws with modern regulatory needs
Regulatory Oversight & Licensing Requirements
Commercial Gambling Management Commission (CGMC)
CGMC plays a central role in regulating Cambodia’s gambling industry. Operating under the Ministry of Economy and Finance, the CGMC oversees licensing, compliance, and enforcement through five key departments:
- General Affairs
- Legal Affairs & License Management
- Revenue Supervision & Management
- Gaming Technical Management
- Security & Order Management
Onsite Casino Regulatory Offices
A significant regulatory development is the establishment of 13 onsite CGMC offices in licensed casinos. These offices ensure:
- Real-time compliance monitoring
- Strengthened administrative procedures
- Guidance for operators on legal obligations
- Implementation of a Casino Management System (CMS) (upcoming initiative)
Zoning & Licensing Framework
Cambodia’s 2020 Gaming Law introduced a three-zone system:
- Prohibited Zones – No gambling activities allowed
- Promoted Zones – Encouraged for gambling investments
- Permitted Zones – Conditional approval for gambling operations
To obtain a casino license, operators must meet stringent requirements, including:
- Capital investment of at least $100 million for integrated resorts
- Compliance with CGMC registration and equipment certification
- Phased investment structure (over 15 years for existing operators)
Key Regulatory Provisions & Compliance Measures
Prohibition For Cambodian Nationals
Despite Cambodia’s flourishing gambling industry, Cambodian citizens remain prohibited from participating in casino gambling. This restriction is enforced under both 1996 and 2020 Gambling Laws to mitigate the social risks associated with gambling.
Taxation Structure
The 2020 Gaming Law introduced a new taxation framework, with rates ranging from 4% to 7% of gross gaming revenue (GGR). These tax revenues significantly contribute to Cambodia’s economy, generating approximately $40 million annually.
Equipment & Operational Regulations
- All gaming equipment must be registered with CGMC by 2024
- Casino equipment older than 10 years must be replaced.
- FIRM 614 is the sole licensed importer of gaming equipment, raising concerns over potential monopolistic practices
Enforcement & Crackdowns On Illegal Gambling
Fines & Penalties
Cambodia has implemented strict penalties for regulatory violations under Sub-Decree 102 (2022):
- Operating with an expired license: $2,000 per day
- Failure to commence operations on time: $1,000 per day
- Unauthorized casino license transfer: $25,000 fine
- Unlicensed casino personnel: $2,500 fine per individual
Nationwide Crackdowns
The government has intensified efforts to combat illegal gambling, with over 500 arrests in early 2024. Prime Minister Hun Sen has ordered law enforcement agencies to eliminate unlicensed gambling dens and online scams.
Despite these efforts, corruption remains a challenge, with reports of local law enforcement officials turning a blind eye to unauthorized gambling operations.
Future Outlook & Industry Trends
Policy Shifts & Regional Impact
Cambodia has signaled a shift in policy, aiming to halt the expansion of land-based gambling laws to improve diplomatic relations with China. This decision could limit the issuance of new licenses and strengthen regulatory enforcement against illegal operations.
Modernization & Digital Compliance
The CGMC is actively working to modernize regulatory mechanisms, including:
- Casino Management System (CMS) to enhance compliance.
- Tighter controls on gaming software and financial transactions
- More robust digital surveillance tools to combat illegal online gambling
Challenges & Potential Reforms
Despite comprehensive regulations, Cambodia faces key challenges:
- Persistent illegal gambling activities (especially in border regions)
- Corruption within law enforcement, undermining regulatory effectiveness
- Cultural attitudes toward gambling, making enforcement difficult
The Ministry of Interior’s ongoing legal reforms aim to address these challenges, ensuring Cambodia’s gaming industry remains well-regulated, transparent, and competitive.
Conclusion
Cambodia has made significant strides in establishing a well-regulated gambling industry that balances economic benefits with responsible gaming practices. The 2020 Commercial Gaming Management Law and subsequent regulatory measures have strengthened oversight, while on-site** regulatory offices** provide real-time compliance monitoring.
Cambodia’s gambling sector will likely see increased enforcement, limited expansion, and enhanced regulatory technologies. However, illegal gambling, enforcement corruption, and evolving regional dynamics will continue to shape the industry’s trajectory.
For investors, operators, and policymakers, staying ahead of regulatory changes and compliance requirements is crucial in navigating Cambodia’s evolving gambling landscape.
