Gaming | Cambodia rising destination following local junket market fall

The Cambodian Public Bank Plc headquarters, bottom, stand in Phnom Penh, Cambodia

Cambodia is seeking junkets to lure in more high-stake Chinese gamblers, as high rollers shy away from Macau under the intensified crackdown by mainland authorities, the Phnom Penh Post reported.
The news report indicated that NagaWorld, the Southeast Asian country’s largest casino, would seize this opportunity to “further penetrate the regional and Chinese gaming markets, as junkets abroad sought to diversify their operations to other Asian regions.”
The group’s VIP earnings in the first half of the year soared by 25 percent to USD108 million, much of which was ascribed to gamblers flying into the country via junkets. Since July, the casino has also been working with Chinese outbound travel agents to attract more patrons through its own flights from the capital of Hunan Province, Changsha.
Despite the boost to gaming revenue, there is limited consensus on the greater economic contributions of such junket operations outside the gaming floors. Maggie Au, representative of the Jimei International Entertainment Group Limited which signed an agreement with the Cambodian casino in July, told the media that the nation’s tourism could benefit from loan activities as the group’s clients were also introduced to other Cambodian tourist destinations.
“When Jimei promotes a particular country to its patrons, it will also invite them to the local attractions, so Jimei believes that its junket arrangement signed with NagaWorld would also help with Cambodia’s tourism,” she said.
Nonetheless, CIMB gaming analyst Michael Ting stated otherwise: gamblers aim for casinos and not major tourist spots. However, he conceded that spending in local restaurants and hotels was possible.
Another casino group, Donaco International Limited, also partnered with Heng Sheng Group, another local-based junket, last month. The group’s executive director Ben Reichel noted that employment opportunities had arisen in casinos with the assistance of those junket operators, which also rejuvenated the economy.
“The employment provided obviously contributes significantly to the Cambodian economy,” Reichel said. “In addition, casinos pay significant taxes and attract hundreds of thousands of tourist each year, all of whom spend money in Cambodia.”
The report indicated that there’s a lot  potential in the Phnom Penh gaming market. However, the country receives a higher influx of Chinese tourists every year. According to the nation’s Ministry of Tourism, more than 335,000 Chinese nationals visited the country in the first half of the year, signalling growth of 22 percent compared to 2014.