from Gaming & Leisure Magazine
Summer 2019
Cambodia is one of the fastest growing casino markets in the world with a large surge in licences issued in both 2017 and 2018. The nation’s Ministry of Economy and Finance has released figures showing a 53% increase in 2018 over the number of casinos in 2017.
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| Gaming and Leisure Magazine Summer 2019 |
The country’s gaming industry has benefited greatly from several factors: a) a world renowned integrated resort (NagaWorld) in it’s capital, b) a neighboring country that prohibits casinos and gaming (Thailand), c) a neighbouring country that significantly restricts their citizen’s ability to gamble (Vietnam), and d) a very lenient policy allowing significant investment to come in from China.
NagaWorld - Phnom Penh
Cambodia’s trend-setting integrated resort, NagaWorld is one of the country’s largest 5-star hotels and the only luxury premium casino in the country. Based in the capital city, Phnom Penh, the resort has 1658 luxurious rooms and suites, and caters to an international clientele of both business and leisure guests. NagaWorld encompasses most of what travelers need and desire under one roof: 27 Food & Beverage outlets and clubs, two all-suite luxurious spa, shopping gallery including China Duty Free Group, extensive entertainment services including gaming facilities, and premium meeting spaces with state-of-the-art facilities.
NagaWorld enjoys a 70-year casino licence that will run till 2065, as well as a 41-year monopoly within a 200km (120 mile) radius of Phnom Penh that expires in 2035, guaranteeing it’s position as Cambodia’s flagship integrated resort.
Border Casinos - Thailand / Cambodia
Located in SE Asia, Cambodia is bordered by Thailand on the west & north, Laos on the northeast, and Vietnam on the southeast. The southern part of the country is a seashore on the Gulf of Thailand.
Since casinos and gambling are banned in Thailand, there is a vibrant casino market within each of the provinces on the Thai-Cambodia border. Most notably in Poipet (Banteay Meanchey province) and Koh Kong province which serve as busy border points with significant vehicular traffic between the two countries. Poipet serves as the busiest border point between Thailand and Cambodia, linking Bangkok with the cities of Siem Reap & Phnom Penh. It’s also a common point for expats making a visa run.
Mere steps across the border there are a handful of casinos servicing mostly Thai gamblers. As casinos are banned in Thailand, these casnos thrive by feeding off the Thai, much to the chagrin of the Thai government.
One example of the tensions happened just last year (2018), when the new Saitaku Resort and Casino had its soft opening in Oddar Meancheay just across from Thailand’s Buriram region. The intent of this casino was to rely almost exclusively on an influx of gamblers from Thailand The Thai authorities however, barred their citizens from crossing through the Chong Sai Taku checkpoint to visit the casino. While hundreds of invited VIP guests were allowed to attend the casino opening, Thai border agents prevented non-invited guests from making the trip.
Days later, the Cambodian authorities retaliated by blocking their citizens from crossing over into Thailand. The tit-for-tat restrictions wreaked havoc on both sides of the border with non-gaming businesses who depend on the steady stream of tourists for the bulk of their income.
Border Casinos - Vietnam / Cambodia
The chief border point between Vietnam and Cambodia is at the Bavet crossing point. The most common traffic through Bavet are a) vehicles traveling between Ho Chi Minh City (Saigon) and Phnom Penh, and b) local Vietnamese crossing the border to gamble.
Though the casino industry is also growing in Vietnam, the government has restricted Vietnamese nationals from gambling. Until only recently Vietnamese were not allowed to gamble, which resulted in many traveling across the border to gamble in Bavet and other locations. This resulted in the loss of significant revenues in Vietnam as their citizens crossed the border.
Recently however, the Vietnamese government has approved licenses for several casinos to allow locals to gamble -- though the licenses are typically on the coast, and far from the Cambodian border. The draw of Vietnamese to the casinos in Cambodia have only been slightly impacted.
Earlier this year I spent a few days at a rather small border crossing -- Binh Hiep International checkpoint, a crossing that has been open less than two years. There are three casinos there at the moment, each rather small and catering nearly exclusively to Vietnamese. The Vietnamese side of the border is paved, but the Cambodian side is mostly still a dirt road as construction trucks continue to build a fourth, larger casino right on the border.
I found it an interesting dynamic to watch -- as it was quite easy for Vietnamese gamblers to cross back and forth over the international border. Typically, they’d cross from Vietnam to Cambodia on motorbike, and wouldn’t need to go through standard immigration processes. Rather, they would simply get a blank “arrival card” from the Cambodian border guard, which they would then return to the guard on their way out. Quite often the motorbike would not stop, but simply roll through as they took the card from the immigration / customs agent.
The process was quite more thorough however, when I crossed from Cambodia into Vietnam, as visas were checked, my baggage checked and my passport stamped. At this crossing however, it was simple for them to cross (many likely without a passport).
Spending some time outside the casino, I noticed there were certain types of deliveries coming in from Vietnam to the gamblers. Often, the gamblers preferred their meals from home, so it was common to see Vietnamese meals delivered by motorbike to the gamblers, which they were allowed to consume within the casino. There were no passport checks for those delivering meals as it was a common enough event, likely dozens of times a day.
On a couple other exchanges, I’d watch as an older person arrived at the casino on motorbike, and connect with one of the gamblers (a friend or family member). The person arriving would hand them a baggie of cash -- likely further funds to allow the gambler to continue placing bets well into the evening. There were no ATMs at these border casinos, so the additional funds needed to come in from across the border. As long as the funds were coming in from Vietnam, the border control was a bit relaxed.
Sihanoukville - The former sleepy coastal town
Sihanoukville was once a very relaxed coastal town, well off the beaten path. Typical travelers here were backpackers and nomadic beachgoers. Local foods and beer on the beach and a decent sunset drew the adventurous here for some time off-the-grid.
The coastal town now has changed significantly -- and is booming with construction of new casinos -- largely backed by Chinese investors. Most of the casino licenses approved in 2017 to present are for new projects in this southern coastal town. The complexion of the town has changed, as it is almost exclusively an enclave for Chinese investors and tourists. The Sihanoukville airport has also added multiple direct flights from China.
There are several factors that are leading to the expansion here. One is that the Cambodian government has been willing to embrace the investment by Chinese to help develop the southern province. Aside from the private investment into Chinese casinos, the Chinese government is assisting in development of roads and infrastructure in the province. Chinese companies now have more than $4 billion worth of power plants and oil operations just off-shore. Sihanoukville is Cambodia’s only deep-water port, and its become part of a vital trade route for China and a focal point for Chinese investment.
Growth in the Cambodian casino industry is likely to continue for the foreseeable future, with most of the focus to remain on border casinos and Sihanoukville. The gaming environment is a bit foreign to the typical westerner -- but can be enjoyed by the open-minded, thrill-seeking nomad.
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