Cambodia’s tax revenue from the gambling sector experienced a significant decline during the first six months of 2026, dropping approximately 26% compared to the previous year. According to the Ministry of Economy and Finance, gaming duties collected by the state amounted to $29 million, down from $39 million recorded during the same period in 2025.

The downturn follows an ongoing government initiative to dismantle online scam syndicates, which often utilize casinos as fronts for money laundering. Since the crackdown began last year, nearly 100 casino licenses have been revoked or the facilities have been closed entirely. NagaWorld, which maintains a gambling monopoly in Phnom Penh, saw its duty contributions fall by 18%.

Mar Sophal, a program manager at the NGO Forum, noted that the revenue decline underscores the risks of depending on volatile income sources. He suggested that the government should focus on diversifying its revenue base toward more sustainable and productive economic sectors. Meanwhile, the Ministry of Economy and Finance reported that the crackdown has also exerted short-term pressure on the real estate, construction, and tourism industries.

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Despite the drop in gambling income, Cambodia’s state spending has reached record levels, with a budget exceeding $10 billion. Social sectors, including health and education, received the largest allocation at $1.4 billion, followed by general administration and defense. Ministry spokesperson Meas Soksensan stated that increased expenditures on security and defense would not compromise funding for social welfare or development priorities.

Economic growth forecasts have been adjusted downward due to global inflation, energy crises, and regional tensions. The government has revised its 2026 growth projection to 4.2%, down from an initial 5%, while the International Monetary Fund has forecasted a more conservative 3% growth rate for the country.

Source: CamboJA News