Cambodia Unleashes Major Casino Licence Revocation Amid Illicit Activity Crackdown
Phnom Penh, Cambodia – Cambodia has dramatically scaled back its casino sector, revoking over 100 licences following a comprehensive review. The government cited widespread non-compliance and alleged connections to illegal online gambling and human trafficking. This decisive action specifically links many of these revocations to the alleged activities of controversial businessman Chen Zhi and his network.
From an initial count of 148 casino licences, a staggering 120 have been cancelled. This leaves only 28 active permits across the nation. The Ministry of Economy and Finance spearheaded the crackdown. Their investigation revealed significant failures by operators to adhere to regulations. Many licences were annulled due to outstanding fees and a lack of transparency.
The Chen Zhi Connection and Illegal Operations
A central figure in this extensive Cambodian casino licence revocation is Chen Zhi, the chairman of the Prince Group. He faces accusations of deep involvement in illegal online gambling and various human trafficking schemes. Reports suggest his network operated under the guise of legitimate businesses. These businesses allegedly facilitated illicit activities, including scam operations.
The Prince Group, a prominent Cambodian conglomerate, spans real estate, banking, aviation, and tourism. Despite its public profile, allegations have persistently shadowed its operations. These accusations link the group to organized crime and human rights abuses. Authorities have specifically named companies such as Jin Ding, Atlantic, New Macao, and Jin Bo in connection with these illicit ties. These entities were among those targeted for licence withdrawal.
A Broader Government Crackdown and Regulatory Overhaul
This aggressive move is not an isolated incident. It builds upon a broader crackdown initiated by the Cambodian government in 2019, which banned all forms of online gambling. The policy aimed to mitigate rising crime rates and address concerns about money laundering. The revocation process found its legal basis in Sub-decree 106. This crucial regulation came into effect in late 2021. It empowered authorities to scrutinize and cancel licences that failed to meet updated standards.
Cambodia has also faced international pressure regarding its anti-money laundering (AML) efforts. The Financial Action Task Force (FATF) previously placed Cambodia on its “grey list.” This designation highlighted significant deficiencies in the nation’s financial crime prevention frameworks. The current licence cancellations demonstrate a serious commitment to improving these AML measures. It aims to shed the grey list status and restore international financial credibility.
Impact on Cambodia’s Gaming Landscape
The sweeping revocations signal a dramatic transformation for Cambodia’s gaming industry. What was once a rapidly expanding sector is now contracting significantly. The government’s firm stance reinforces its commitment to eradicating illegal operations. It seeks to cultivate a more transparent and compliant business environment.
Authorities have reiterated their determination to continue their efforts. They pledge to ensure all remaining licensed operators adhere strictly to the law. This ongoing vigilance aims to prevent the resurgence of illicit activities within the gaming sector. The long-term objective is to foster sustainable and responsible growth in Cambodia’s economy.
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