Cambodia Casino Tax Revenue Drops 26% First Half 2026

Kyle Kevin

iGaming Writer

Fact Checked

Cambodia’s casino tax revenue plunged 26% in the first half of 2026. Seventy-two casinos have closed. The government still expects to beat its annual target.

Cambodia’s casino tax revenue collapsed in the first half of 2026. Duties from casino gaming and gambling fell 25.8% year-on-year to roughly $28 million, according to Ministry of Economy and Finance data reported by the Khmer Times on Thursday. The figure covers the six months to June 30. It represents a sharp contraction for a sector that has long been one of the country’s most reliable revenue streams. However, the same ministry projects full-year gambling tax revenue at 117.7% of the annual target. That paradox — a first-half collapse and a full-year beat — is the story. It points to a sector undergoing structural disruption, not just a cyclical dip. The numbers also sit within a broader economic downgrade. Cambodia cut its 2026 GDP growth forecast to 4.1% this week, down from 4.2% in May and an initial estimate of 5%. The regional impact of Cambodia’s casino sector troubles has drawn attention across Southeast Asian gaming markets.

The 26% Revenue Drop

The $28 million first-half total is a significant fall from the comparable period in 2025. The Khmer Times did not publish the exact year-ago figure, but the 25.8% decline implies a prior-year first-half total of approximately $37.7 million. That puts the sector on track for its weakest annual performance in years, assuming the second half does not recover sharply. The ministry’s mid-year budget review, released Wednesday, attributed the broader economic slowdown to three factors. Rising fuel prices, driven by Middle East conflicts, have increased operating costs across all sectors. Cambodia’s ongoing border dispute with Thailand has disrupted trade and tourism flows. Most critically for gaming, the persistent fallout from online scam activities has damaged the country’s international reputation and triggered a casino licensing crackdown. These are not temporary headwinds. The fuel price issue is geopolitical and unpredictable. The border dispute is diplomatic and protracted. The scam centre problem has already forced mass casino closures. Together, they explain why the first-half gaming tax figure looks so weak.

NagaWorld’s Tax Contribution

NagaWorld remains the dominant revenue source. The Phnom Penh casino resort, operated by Hong Kong-listed NagaCorp Ltd, holds monopoly rights for the capital. The Khmer Times identified it as the largest contributor to the first-half gaming tax total. NagaCorp has not yet released its first-half 2026 results. However, its 2025 full-year report, issued in April, provides context. The company paid just over $43.7 million in gaming tax on gross gaming revenue of slightly above $691.6 million. That is an effective gaming tax rate of roughly 6.3%. It also paid $723,000 in income tax. In March, NagaCorp reported a 2025 profit of approximately $310 million and declared a final dividend. The numbers suggest a healthy, high-margin business. The question is whether that performance held into 2026. NagaWorld’s monopoly position insulates it from some competitive pressure. However, it cannot insulate the property from macroeconomic forces. A 26% sector-wide decline implies even the market leader felt the squeeze. NagaCorp’s first-half results, when released, will show how much.

72 Casino Closures and the Scam Centre Crackdown

Seventy-two Cambodian casinos have shut in recent months. The closures stem from a government crackdown on scam centres, the criminal compounds that have proliferated in border regions and used casino licences as cover. Cambodia’s reputation has suffered. International pressure, particularly from China, forced the government to act. The result is a licensing purge. Properties that operated under questionable credentials lost their permits. Others closed preemptively to avoid scrutiny. The 72-closure figure is striking. Cambodia’s total casino count was already shrinking after pandemic-era losses. This wave accelerates the contraction. The closures remove not just gaming floors but also employment, tourism infrastructure, and the network effects that support surviving properties. For the government, the tax hit is immediate. Each closed casino stops paying duties, licence fees, and related taxes. The $28 million first-half figure reflects that attrition. However, the crackdown also serves a longer-term purpose. Cambodia is trying to rebuild its image as a legitimate gaming jurisdiction rather than a hub for fraud. That rebrand is necessary for future investment. In the short term, it is expensive.

Why Full-Year Targets May Still Be Met

The ministry expects full-year 2026 gambling tax revenue to reach 117.7% of the annual target. The Khmer Times did not disclose the target amount, so the absolute projection remains unclear. However, the percentage suggests the government built significant conservatism into its budget. The mechanism for the recovery is stricter collection controls on casino games. That implies the first-half shortfall is partly a collection problem, not purely a revenue problem. Some operators may have underreported or delayed payments. Tighter enforcement would bring in back taxes and improve compliance going forward. It is also possible the annual target was set before the scale of the scam centre crackdown became apparent. If the target assumed 100-plus casinos operating and only 30 or 40 remain viable, 117.7% of a low target is not impressive. Without the raw numbers, the percentage is hard to interpret. What is clear is that the government is betting on enforcement, not growth, to close the gap. That is a defensive posture. It works if the remaining operators are large, compliant, and profitable. NagaWorld fits that description. The dozens of smaller properties that closed do not. The full-year result will depend on whether the surviving casinos can generate enough tax to offset the mass closures. Cambodia’s 2026 GDP growth forecast of 4.1%, down from an initial 5%, suggests the government is not optimistic about a broad recovery. Gaming will be one sector among many feeling the pressure.

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