Recently, the Cambodian police conducted a raid in the Gong Wu district of Phnom Penh, uncovering an illegal casino disguised as a "Everything for 1 Dollar" store, and arrested a 53-year-old Chinese woman on the spot. The site yielded 8 baccarat tables, 2 fishing game machines, and several computers, TVs, and other gambling equipment.
The involved premises, located near Highway 4 in Phnom Penh, were rented by the woman from a local landlord, who then set up the casino without permission. Upon discovering the gambling activities, the landlord immediately reported to the authorities, demanding legal action and the closure of the premises.
This case highlights the fine line between "legal" and "illegal" in Cambodia's gambling industry. Although the industry is legal and rapidly developing in the country, the law does not grant everyone the freedom to operate casinos. According to Cambodian law, the establishment and qualification of casinos are strictly regulated, with only NagaWorld in Phnom Penh allowed to operate legally. Other casinos must be located at least 200 kilometers away from Phnom Penh in designated areas, and any violations are considered illegal operations.
Since the 1990s, the gambling industry in Cambodia has gradually developed into a pillar industry. The Gambling Law introduced in 2020 has systemically upgraded the regulation of the industry, establishing a "comprehensive leisure and entertainment zone" development model to attract foreign investment, boost the tourism economy, and increase fiscal revenue. The law requires new casinos to pay a license fee of no less than $100,000 annually, while existing casinos have incrementally increasing fees based on their years of operation, up to $90,000.
The only legal casino in Phnom Penh, NagaWorld, was founded in 1995 by Malaysian businessman Lim Kok Thay, and holds a 70-year operating license granted by the government. For the first 41 years, the company enjoys exclusive operating rights within a 200-kilometer radius of Phnom Penh. Due to this policy arrangement, any attempt to establish a casino within this area by individuals or businesses is illegal.
This illegal casino case not only touches the legal bottom line but also serves as a warning to foreign nationals doing business in Cambodia: although gambling is a legal industry, it does not mean that legal procedures and operational restrictions can be ignored. Ignoring regulations and engaging in "grey operations" will face severe crackdowns, with penalties ranging from confiscation of equipment to criminal charges. For investors and practitioners, understanding and complying with local laws is a prerequisite for safe and legal operations in Cambodia.
