Logo of Phnom Penh Post newspaper Phnom Penh Post - Naga announces $1B gaming revenue

Naga announces $1B gaming revenue

Content image - Phnom Penh Post
A view of NagaWorld building yesterday. Pha Lina

Naga announces $1B gaming revenue

NagaWorld saw the largest growth in its VIP operations, where “rollings” – a term which refers to the amount bet by gamblers – increased by 128 per cent to $25 billion for the first three quarters of this year.

Its parent company, Hong Kong-listed NagaCorp Ltd, released its third quarterly report on Monday, showing a 94 per cent increase in gross gaming revenue (GGR) to $1.07 billion.

Mass market table buy-ins were up 57 per cent to $887.6 million while electronic gaming machine (EGM) bills-in rose 22 per cent to $1.6 billion.

NagaCorp chairman Timothy Patrick McNally said the opening of Naga 2 in November last year significantly increased the appeal, range and quality of Mass Gaming, Non-Gaming and VIP offerings.

The NagaWorld Complex – comprising of Naga 1 and Naga 2 – is connected via an underground shopping mall known as the NagaCity Walk.

“The group is in the advanced stages of planning for the development of a Naga 3. Based on feedback from stakeholders, the group is confident that additional capacity is necessary to further fuel business growth (in gaming and non-gaming) to position the group as one of the most successful integrated resorts in Asia.”

No information was given on where Naga 3 will be built.

NagaCorp’s quarterly report did not reveal profits during the nine months. However, its 2017 report showed that NagaWorld earned a net profit of $255.2 million last year.

Last year, NagaCorp reported paying $8.12 million in income tax while its gross gaming revenue (GGR) for the same year was $926 million – an effective tax rate of 0.87 per cent based on the company’s GGR.

Cambodia has one of the lowest effective tax rates in the world for casinos. A 2015 report from accounting firm PricewaterhouseCoopers noted that Macau had a 35 per cent tax on GGR, while Australia had a rate of between 10 and 45 per cent. Singapore imposed between five and 15 per cent.

The deputy director-general of the MEF’s Finance Industry Department, Ros Phirun, said yesterday that although casino laws in Cambodia have not been finalised, the Ministry of Economy and Finance (MEF) collects tax revenue from them based on the target determined in national budget law.

Phirun did not release the amount of tax revenue collected from the gambling sector last year but said it achieved 96 per cent of the target. He said there are 133 licensed casinos in Cambodia, of which nearly half are in Preah Sihanouk province.

“Currently, the draft law is at the Council of Ministers. After the law is finalised and put in place for implementation, we hope that tax collection revenue from the gambling sector will increase,” he said.

San Chey, the executive director of the NGO Affiliated Network for Social Accountability, said increasing revenue of the casino business should not be welcome news, but instead a worrying trend of social risk.

“I don’t believe yet that the tax collection revenue from casino businesses has been contributing to a solution of the issue. More revenue from gambling means more taxes, but do we really get more tax revenue?” he asked.

Of the increasing number of casinos in Preah Sihanouk province, Chey said there is a lot of negative impact due to the increase in gamblers.

If law enforcement is not strong enough, the social impact of the increasing revenue of casino businesses is also a cause for concern, he said.

“We always wonder that behind the massive increase in casino business revenue, who are the losers? What is the negative impact on our society?”

MOST VIEWED

  • Temi tourism project approved by the CDC

    The $500.4 million Tourism, Ecological, Marine and International (Temi) tourism project has been approved by the Council for the Development of Cambodia (CDC), according to a notice on its Facebook page on Monday. The project is part of Chinese-owned Union City Development Group Co Ltd’s (

  • Rainsy will return at ‘favourable time’

    Opposition figure Sam Rainsy on Saturday suggested he would not return to Cambodia as he had previously promised, saying that like liberators King Father Norodom Sihanouk and Charles de Gaulle, he would only do so at a “favourable time”. “I will go back to Cambodia

  • NagaWorld casino sees net profit of more than $390M last year

    Phnom Penh’s NagaWorld casino posted a 53 per cent net profit increase last year at $390.6 million, a sum which is almost equal to the combined net profit of all Cambodian commercial banks in 2017. NagaWorld’s parent company, NagaCorp Ltd, is listed on the Hong Kong

  • US Embassy urged to stop ‘disrespecting sovereignty’

    The Ministry of Foreign Affairs and International Cooperation called on the US Embassy in Phnom Penh on Saturday to respect the Vienna Convention on Diplomatic Relations after it called former opposition leader Kem Sokha “an innocent man” – a move deemed to be “disrespecting Cambodia’s