Thailand’s low-tax rate gaming law to bring changes to Cambodia’s tourism, gaming

Frank Chen 1 week ago
Thailand’s low-tax rate gaming law to bring changes to Cambodia’s tourism, gaming

Following the implementation of visa exemption policies between Singapore, Thailand, Malaysia, and China, Cambodia may have the opportunity to follow suit in the future. The NagaWorld Casino in Cambodia not only attracts locals but also draws tourists from neighbouring countries like Thailand. After the Thai parliament completes the casino committee bill, NagaWorld may need to reconsider its operational strategies.

Cambodia may welcome more tourists from China

According to the report of Cambodia’s Ministry of Tourism, the number of international tourists in 2023 was up by 82.5% compared to pre-pandemic data of 2019. However, the recovery of Chinese tourists still lags, with an overall recovery rate of 23.2%. Business travellers account for approximately 71.9% of Chinese inbound tourists. If visa exemption policies are implemented between Cambodia and China, the country may welcome more tourists from the world’s second-largest population.

The newly completed Siem Reap Angkor International Airport and the under-construction Phnom Penh Dek Kong International Airport are expected to be fully operational by 2025. These infrastructures are expected to help increase inbound numbers of travelers and serve as a catalyst for Cambodia’s economic growth through new routes and destinations.

Potential changes in gambling licensing

Previously listed in Hong Kong, NagaWorld held a monopoly on gambling licenses, with exclusive operating rights within a 200-kilometre radius of the capital, Phnom Penh, until 2045. However, this status will be disrupted if Thailand legalises casino operations, intensifying competition between Cambodia and Thailand along the border.

Impact of Thailand’s low-tax rate bill on Asian gaming industry

With the completion of the bill by the parliamentary committee, Thailand has taken a significant step towards legalising casinos. The bill proposes a 17% casino tax, which, if passed, will be nearly equivalent to Singapore’s overall gambling revenue tax rate and is expected to attract investor interest. In contrast, the tax rate in the Philippines is 25%, while in Japan is 30%. The Thai government has adopted an economically friendly approach to attract foreign investment, which pairs well with the upcoming Thai casino industry.

The Thai government is actively attracting foreign investment to create a conducive environment for the upcoming casino industry. The new law clearly outlines the regulatory framework, prioritizing concerns about potential gambling harms to society.

Bidders’ criteria include companies registered in Thailand with a paid-up capital of not less than 100 billion Thai baht (€2.6 billion), with an initial licence term of 20 years. The first batch of integrated resorts tender requirements stipulates a minimum investment amount of 1 trillion Thai baht (€28 billion). However, it is worth noting that the bill covers industry organizational structure, other licencing requirements, social security rules, and the content structure of Thai integrated resorts, which may affect tax rates and related social welfare frameworks.

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