T
he Cambodian government announced on Wednesday it has set a new minimum of capital requirements for new and existing casinos in a bid to improve the country’s economic growth as well as management of the casino industry.
Prime Minister Hun Sen signed on August 26 Sub-Decree No. 166 which stipulates a minimum capital requirement for integrated commercial gambling centers of $200 million and $100 million for other casinos, according to the Phnom Penh Post.
This decree defines “capital” as the casino’s current assets, including shareholder funds in the company and other property, and excludes noncurrent assets and prepaid expenses of unsecured credit companies as well as cash advances provided by the company as current assets.
However, a grace period has been given to existing casinos to meet the minimum capital requirements. Said grace period will include five phases over 15 years.
- $12.2 million for Phase 1, which is estimated to comprise 1-3 years.
- $24.5 million in Phase 2, comprising years 4-6.
- $49 million in Phase 3, years 7-10.
- $73.5 million in Phase 4, years 11-14.
- $98 million in Phase 4, from year 15.
As Secretary of State Mey Vann said on Thursday, the new requirements are in response to economic growth levels and geared to improve management of the Cambodian casino sector, in accordance with the Law on the Management and Integrated Resorts and Commercial Gambling on November 14 2020. Those casinos which are not able to meet the new capital requirements will not be issued new business licenses.
Original article: https://www.yogonet.com/international//noticias/2021/10/22/59875-cambodia-sets-minimum-capital-requirements-for-new-and-existing-casinos
