Phnom Penh, Cambodia – Cambodia has taken decisive action, revoking seven casino licences across Koh Kong and Sihanoukville. The government cited undisclosed links to sanctioned Chinese developer Chen Zhi as the primary reason. This move highlights Cambodia’s commitment to stricter regulatory oversight within its gaming sector. It also underscores ongoing efforts to combat illicit activities.
Cambodia Casino Licences Under Scrutiny
Six of the revoked licences are located in Koh Kong province. They were operated by businesses reportedly connected to the Union Development Group (UDG). The seventh licence was in Sihanoukville. This permit belonged to a subsidiary of Prince Group. Both UDG and Prince Group are owned by Chen Zhi.
The Ministry of Economy and Finance is set to formally notify the operators. These companies had failed to declare any associations with the controversial developer. Chen Zhi was sanctioned by the US Treasury in 2022. The sanctions targeted his alleged involvement in corruption and various criminal enterprises. His business empire, based in Cambodia, has been accused of money laundering.
UDG itself faced US sanctions in 2020. It was accused of human rights abuses and corruption. These allegations were tied to its massive Dara Sakor project in Koh Kong. The project involved a 99-year lease for a significant land area. The US Treasury statement specifically mentioned Chen Zhi’s pivotal role within UDG. It also highlighted his use of his extensive financial network in Cambodia for illicit purposes.
Broader Regulatory Reforms and Anti-Crime Drive
This latest revocation follows a comprehensive government review. Cambodia’s gambling industry has seen substantial changes recently. A nationwide ban on online gambling in 2019 led to many Chinese nationals leaving the country. This resulted in significant economic shifts for the sector.
In 2023, the government resumed issuing new casino licences. However, these came with much tighter controls. Operators now face higher tax obligations and stricter compliance requirements. The focus has shifted towards land-based casinos and integrated resorts. The goal is to develop Sihanoukville into a multi-purpose special economic zone. This strategy aims for sustainable growth and a more regulated environment.
Prime Minister Hun Manet has also launched a significant crackdown on illegal gambling operations. This initiative specifically targets online scamming and human trafficking. A dedicated committee was formed earlier this year. Its mission is to eradicate all forms of illegal gambling. The government aims to restore investor confidence. It also seeks to protect its international reputation.
The affected operators have a one-month window to appeal the decision. This period allows them to present their case. The government’s firm stance signals a new era of transparency. It prioritizes strict adherence to regulations. This ongoing overhaul seeks to professionalize Cambodia’s gaming landscape.
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