Monday, 2 March 2009

The end of gambling in Cambodia: Cambosix on the receiving end of teething troubles

Phnom Penh (Cambodia), 26/02/2009. Cambosix betting office shut down after a speech pronounced by prime Minister Hun Sen.
©Vandy Rattana


Ka-set

By Ros Dina

The Cambodian government has declared war to gambling. Its first measure was to order on Wednesday February 25th the closure of Cambosix, the only offices enabled by the authorities to accept bets on football games. The government put an abrupt end to the company's licence. The company had started operating in Cambodia in February 2002, according to its website, and its licence was due to be valid till 2011. Slot machines and other gambling activities are also in the firing line of the government, who obtained in the space of two days the closure of all the Cambosix branches, the shops signs of which have been dismantled one after the other.

Hun Sen to local governors: shut it down or you'll be fired!
The prime Minister announced it on Tuesday February 24th during a graduation ceremony in Phnom Penh, after having explained the wrong effects of gambling. Hun Sen then quickly raised his voice and warned governors of city sections (khan) in Phnom Penh who would potentially fail to abide the new instructions in their own jurisdiction. : “Who do you fear? The prime Minister or the people who have a lot of influence and hide behind those gambling establishments? If you do not do that, you will lose your job; is that what you want?” the prime Minister asked.

A question of security and morality
The forecast goal of this repression was a strengthening of public order and social morality, Hun Sen explained. He said that gambling games were a source of problems, and generated disputes, domestic violence at home and petty crime within the society. And he is not the only one who came to such conclusions. The prime Minister reported that the Council of Encouragement of Morality for Women, of which Hun Sen's wife is the honorary president, became worried at a meeting because of a decline in moral values in the Cambodian society, due to gambling. These games for money are forbidden to Cambodians, but companies turn a blind eye to this misconduct towards the law and gladly accept local customers, the head of government deplored.

On top of that argument come more practical considerations, i.e. these activities only bring back little money to the country, Hun Sen said. Last week, secretary of state at the Ministry of Economy Chea Peng Chheang declared to journalists that the industry of gambling had nonetheless brought more than 20 million dollars of internal revenue to the Cambodian state and predicted even greater revenue in 2009. Besides, the high-ranking governmental official added that the government had no intention of banning such activities and preferred legal control rather than a prohibition policy. The prime Minister's decision therefore appears as scathing denial to the secretary of state.

The governmental Circular was followed by a Circular from the Ministry of Economy, issued on Wednesday February 25th which, in turn, ordered the closure of all gambling places, whatever they are, in the whole of Cambodia, as well as the pure and simple cancellation of their still valid licences. The Circular, signed by the hand of Minister Keat Chhon, warns that all those who will not comply with the order would face sanctions with regards to the law. The Ministry calls all local authorities to take the appropriate measures to eradicate this industry which does not enjoy success any more.

No compensations for Cambosix
After a meeting held with development partners of the United Nations at the Council for the Development of Cambodia on Wednesday February 25th, Keat Chhon said to journalists that tax collected with Cambosix, which has some twenty branches in the country, amounted to about a million dollars per year. As for the question of knowing whether Cambosix will receive compensation for this breach of licence without notice, the Minister replied that if the government had indeed granted a licence to that company, which runs through the year 2011, “no particular contract links both parties”... This would mean that Cambosix will not receive any indemnity or compensation. Keat Chhon confirmed that all betting offices and illegal gambling, including street lottery, were from then on targeted by the authorities.

A measure implemented in urgency
In December 2008, Hun Sen had already ordered the national and military police to proceed to the verification of the licences of all offices with slot machines and close down any that were not in order. The prime Minister had also asked the Ministry of Economy to inspect hotels offering the use of electronic games to be played with money, in order to make sure that access was indeed forbidden to Cambodians, otherwise they would see their licence confiscated within 24 hours. The results of this crackdown operation were not mentioned afterwards... In this case, the network of Cambosix offices was swiftly dismantled, with formidable efficiency.

... And apparently popular
A young electrician, a chronic gambler and devoted to Cambosix where he used to bet the equivalent of $5 every week, says he is stunned by the news. “Me and my friends, we cannot believe it. It was our favourite hobby! I was even ready to sacrifice my breakfast money to invest it in bets… As for my parents, they are over the moon, on the contrary. They told me that at last, I would be able to start saving some money and electricity by watching television less often. I never used to miss a football game...” With the exception of gamblers, deprived of their vice, Cambodians, like this young man's parents, seem to welcome the measure in a rather favourable way.

4 comments:

Anonymous said...

Hun Sen "The power trip" what else is new.
Cambodia was never a democracy state. It's the sole power of hun sen the monarch.

Anonymous said...

In term of gambling who will have money to go there and play? should be the poor one gambling or the rich one? Useless government they should think about how they could help the poor one is better

Anonymous said...

I've got a solution "VOTE" if there is such thing as that. But wait, if there's any opposition to hun sen and the cpp, there'll be executed.

Anonymous said...

I am regular visitor, how are you everybody?
This post posted at this website is genuinely nice.

Here is my weblog weatherford