Sihanoukville Set To Become Cambodia's Top Casino Hub
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Chinese gaming operators are rapidly transforming Cambodia's Southern coastal city of Sihanoukville into the country's leading casino hotspot.
Cambodia had issued more than 110 casino licenses by the middle of this year, and Sihanoukville's casino market is starting to rival that of Poipet and Bavet, which cater to customers who stream across the border from Thailand and Vietnam, respectively. |
Cambodia’s casino industry is the land of opportunity
Cambodia’s casino industry, once nothing more than a footnote in the global casino space, has grown significantly in the past year. There has been an increase of 53% in the number of licenses issued, leading to the country being viewed as the “New Land of Opportunity” by Casino Review Magazine (CR).
The majority of the growth has been seen around Sihanoukville, which has attracted a large number of Chinese investors due to its popularity as a vacation destination and its appeal as a place to live. Its success is also being driven by the fact that Cambodia created the Sihanoukville Special Economic Zone (SSEZ), which gives Chinese manufacturers economic incentives to operate there. Klebanow adds, “Sihanoukville is undergoing unprecedented growth.
The majority of the growth has been seen around Sihanoukville, which has attracted a large number of Chinese investors due to its popularity as a vacation destination and its appeal as a place to live. Its success is also being driven by the fact that Cambodia created the Sihanoukville Special Economic Zone (SSEZ), which gives Chinese manufacturers economic incentives to operate there. Klebanow adds, “Sihanoukville is undergoing unprecedented growth.
chinese nationals control three-quarters of sihanoukville casinos
Chinese nationals control over 90% of businesses in Cambodia’s Sihanoukville region, including over three-quarters of its casino operations.
Cambodia’s government revealed last month that 91 of the 163 casino licenses it has issued to date were for operations in Preah Sihanouk province. Many of these licenses were focused on online gambling operations, which traditionally target customers in mainland China.
The massive rise in the number of new casino licenses issued – including 13 in just the first four months of 2019 – has raised government revenue but has also increased tensions between local residents and the hordes of Chinese nationals flooding into Sihanoukville.
Cambodia’s government revealed last month that 91 of the 163 casino licenses it has issued to date were for operations in Preah Sihanouk province. Many of these licenses were focused on online gambling operations, which traditionally target customers in mainland China.
The massive rise in the number of new casino licenses issued – including 13 in just the first four months of 2019 – has raised government revenue but has also increased tensions between local residents and the hordes of Chinese nationals flooding into Sihanoukville.
Suncity Group enters partnership in Sihanoukville
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Macau’s leading junket operator Suncity Group, a company listed on the Hong Kong Stock Exchange, has entered into a partnership with locally-registered firm Golden Sun Sky to provide consultancy services in the construction of a resort in Sihanoukville.
“The directors believe that entering into this strategic partnership agreement will expand the company’s footprint in Cambodia, in addition to the integrated resort projects in Vietnam,” Suncity said in a recent filing to the Hong Kong Stock Exchange. Total investment in the resort |
which is owned by Golden Sun Sky, is estimated at $360 million.
The resort will occupy an area of 650,000 square meters in Sihanoukville’s popular Otres Beach and will contain gaming facilities, Suncity said. The developers aim to have the resort operational by the end of 2019. Sihanoukville is located in Preah Sihanouk province, in the country’s coast. Last year, the province welcomed nearly 2 million tourists – 1.5 million of those visitors came from overseas.
The province is a hotbed of gaming activity in the country. The majority of Cambodia’s 100 casinos are located in Preah Sihanouk.
The resort will occupy an area of 650,000 square meters in Sihanoukville’s popular Otres Beach and will contain gaming facilities, Suncity said. The developers aim to have the resort operational by the end of 2019. Sihanoukville is located in Preah Sihanouk province, in the country’s coast. Last year, the province welcomed nearly 2 million tourists – 1.5 million of those visitors came from overseas.
The province is a hotbed of gaming activity in the country. The majority of Cambodia’s 100 casinos are located in Preah Sihanouk.
Sihanoukville welcomes new development
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Sky Mountain View Investment began construction this week in Sihanoukville of a $109 million project consisting of a commercial building and hotel.
The Sky Mountain Business Centre and Sky Mountain View Hotel will be raised in three stages, Keo Maly, representative of the company, said during the groundbreaking ceremony on Wednesday. |
In phase one, $12.33 million will be spent to raise the 12-floor commercial building. The hotel will be built during phase two. The building, consisting of 25 floors, will cost $15 million. In the final stage of the project, two more buildings will be raised at a cost of $81.6 million, each with 33 floors.
“The commercial building and Sky Mountain View Hotel will help boost the economy and create well-paying jobs for the local people,” Ms Maly said.
“The commercial building and Sky Mountain View Hotel will help boost the economy and create well-paying jobs for the local people,” Ms Maly said.
Cambodia Looks to Foreign Investors to Boost Casino Gaming IndustryCambodia is pushing ahead with new legislation in a bid to lure foreign investors to its vibrant casino and gaming industry, promoting the Kingdom as a key gaming center in South East Asia.
The proposed legislation, expected to be passed after general |
elections this year, has been three years in the making and will oversee an industry currently netting the government almost $50 million in tax revenues.
Gambling a booming business
Ben Reichel, executive director of the Sydney-listed Donaco International, says across South East Asia there is significant demand underpinning the potential growth in the gaming industry. "There's a lot of unsatisfied demand in the region as a whole. If you look at the number of tables compared to somewhere like the USA, it's actually a very low number of gaming tables available - which is why there is so much illegal competition going on," Reichel said.
'Junket agents'
The impact of VIP junket operators is significant. Cambodia's premier casino, NagaWorld, recently reported a 140 per cent growth in VIP rolling turnover to $21.1 billion for 2017 up from $8.71 billion a year earlier, according Naga Corp's Hong Kong stock exchange released financial results of February 28.
NagaWorld revenues amounted to $625.33 million in 2017 up from $225.66 million the previous year. Its net profit rose 39 percent to $255.2 million.
Reeling in Chinese gamblers
In 2017 arrivals from China rose more than 40 per cent to 1.2 million, surpassing Vietnam to become the largest source of tourists in Cambodia. "The government has said they want to make China one of their top three -- if not number one source of tourism going forward," said Donaco's Reichel. Cambodia also offers Chinese gamblers an alternative to Macau where in recent years VIP junket numbers have fallen against the backdrop of President Xi Jinping's crackdown on corruption.
Gambling a booming business
Ben Reichel, executive director of the Sydney-listed Donaco International, says across South East Asia there is significant demand underpinning the potential growth in the gaming industry. "There's a lot of unsatisfied demand in the region as a whole. If you look at the number of tables compared to somewhere like the USA, it's actually a very low number of gaming tables available - which is why there is so much illegal competition going on," Reichel said.
'Junket agents'
The impact of VIP junket operators is significant. Cambodia's premier casino, NagaWorld, recently reported a 140 per cent growth in VIP rolling turnover to $21.1 billion for 2017 up from $8.71 billion a year earlier, according Naga Corp's Hong Kong stock exchange released financial results of February 28.
NagaWorld revenues amounted to $625.33 million in 2017 up from $225.66 million the previous year. Its net profit rose 39 percent to $255.2 million.
Reeling in Chinese gamblers
In 2017 arrivals from China rose more than 40 per cent to 1.2 million, surpassing Vietnam to become the largest source of tourists in Cambodia. "The government has said they want to make China one of their top three -- if not number one source of tourism going forward," said Donaco's Reichel. Cambodia also offers Chinese gamblers an alternative to Macau where in recent years VIP junket numbers have fallen against the backdrop of President Xi Jinping's crackdown on corruption.