Cambodia to Suspend Casino-Based Online Betting From October Amid Anti-Scam Crackdown

Cambodia is preparing to suspend online betting operations conducted or broadcast from licensed casino premises nationwide from October, as the government intensifies its campaign against online scams, illicit financial flows and criminal activity associated with gaming properties.

The decision was directed by Prime Minister Hun Manet and announced by Deputy Prime Minister and Interior Minister Sar Sokha. Authorities have indicated that the suspension will remain in place until stronger regulatory, technological and enforcement mechanisms are established to oversee this form of gambling.

The measure is significant because Cambodia has already maintained a broad prohibition on online gambling. The latest decision is not therefore a new nationwide ban on online gaming in general. Instead, it targets online betting and live-streamed gaming activity that has continued to operate from the premises of licensed land-based casinos, including arrangements commonly associated with live-dealer or proxy betting.

Cambodia stopped issuing new licences to purely online gambling businesses in 2019 and subsequently moved to close existing online operations. A nationwide enforcement campaign began in January 2020. Licensed casinos, however, were permitted in certain circumstances to conduct live-dealer streaming aimed at foreign customers, creating a distinction between prohibited online gambling and online gaming activity conducted from licensed casino premises.

The government is now moving to close that distinction, at least temporarily.

The principal justification for the suspension is financial transparency. Cambodian authorities have raised concerns that online betting activity conducted from casino premises makes it difficult to monitor the movement of money and establish the origin of funds flowing through the businesses.

That concern places the measure firmly within the country's wider anti-money laundering and financial crime strategy. Online gambling platforms can process large volumes of transactions rapidly, frequently involving customers, payment providers and counterparties in multiple jurisdictions. Where the underlying activity is difficult to verify, the resulting financial flows can create challenges for regulators and financial institutions attempting to distinguish legitimate gambling revenue from proceeds associated with fraud, organised crime or other illicit activity.

The issue has become particularly important in Cambodia because of the growing international scrutiny surrounding scam compounds and technology-enabled fraud. Authorities have increasingly focused on the relationship between some casino properties and criminal organisations operating from or around gaming facilities.

A government review covering the period from July 2025 through August 31, 2026 identified hundreds of locations suspected of involvement in technology-related fraud. Authorities reported operations at 663 suspected scam locations, including some situated within casino premises, and said they had taken action against 27 casinos, with 18 licences revoked and nine suspended.

The scale of the broader crackdown helps explain why online betting has become part of the regulatory response. Authorities are not simply examining whether a casino is offering gambling services within the scope of its licence. They are increasingly looking at the wider environment surrounding the property, including potential links to fraud, unexplained financial flows and other criminal activities.

The government has also reported that nearly 30,000 suspects of 39 nationalities were detained during the wider anti-scam campaign, while more than 22,000 foreign nationals from 38 countries were rescued and repatriated. Authorities said that 86 major scam compounds had been taken under control and that legal proceedings were underway concerning the confiscation of properties associated with the operations.

The figures illustrate the scale of the problem Cambodia is attempting to address. The country's casino sector has increasingly been viewed not only through the lens of gambling regulation but also through the wider risks associated with organised crime, fraud, human trafficking and money laundering.

The October suspension is therefore likely to have consequences beyond online betting operators themselves.

Under the government's plan, relevant ministries and regulatory institutions will use the suspension period to establish stronger systems governing the sector. These measures are expected to include improvements to the legal and regulatory framework, digital infrastructure and the availability of appropriately qualified personnel capable of supervising online gambling operations.

Online betting would only be permitted to resume once the authorities are satisfied that appropriate safeguards and management systems have been established. No specific timetable for a possible reopening has been announced.

The regulatory uncertainty creates a significant issue for casino operators that have relied on online betting activity as part of their business model. Operators will need to determine how the suspension affects existing contracts, technology arrangements, employees, customer relationships and revenues connected to online activity.

Casinos that continue prohibited live-streamed betting operations after the measure takes effect could face licence revocation and further legal action.

That warning reflects a broader shift in the Cambodian regulatory environment. Authorities are increasingly linking the right to hold a casino licence with broader expectations concerning integrity, suitability and compliance.

The Commercial Gambling Management Commission is separately developing a new "integrity and quality" evaluation framework for casino licence renewals. The framework is intended to establish minimum suitability requirements for operators seeking to obtain or retain licences.

Although the detailed assessment criteria have not yet been published, the development suggests that licence renewal decisions may increasingly take account of factors beyond traditional gaming operations.

This could include the operator's compliance history, governance arrangements, ability to identify and prevent illegal activity, cooperation with authorities and the overall integrity of the casino's operations.

The direction of travel is important for casino operators because it potentially transforms compliance from a licensing requirement into a continuing condition of market access.

The developments also carry significant AML implications. Casino businesses have long been recognised as vulnerable to money laundering because gambling environments can facilitate the conversion, movement or layering of funds. Online gambling can increase some of those risks by allowing transactions to occur rapidly and across borders.

A robust AML framework for online betting requires operators to understand customers, monitor transactions, identify unusual patterns and establish appropriate controls over deposits, withdrawals and payments.

Source-of-funds and source-of-wealth considerations can become particularly important where customers transact at levels that appear inconsistent with their known financial profile.

The same applies to casino-to-online relationships. Where an online gaming platform is operated from a casino premises, regulators and financial institutions need to understand the relationship between the land-based operator, the online platform, payment processors, technology suppliers and any other companies involved.

Complex corporate structures can make this particularly challenging. A casino may be licensed in one company's name while online operations, technology, payment processing or customer acquisition are conducted through separate entities.

From an AML perspective, identifying the ultimate beneficial owners of each entity and understanding the contractual and financial relationships between them is essential.

The Cambodian action also highlights the importance of transaction transparency. Authorities have specifically identified difficulty in monitoring cash flows as one of the reasons for the suspension.

This suggests that future regulatory requirements may place greater emphasis on the traceability of funds moving through gambling operations.

Operators could consequently face increased expectations around payment reconciliation, customer account records, transaction histories, identification of payment counterparties and the ability to provide regulators with timely access to relevant information.

Payment providers servicing gambling businesses may also face increased scrutiny. Where operators process substantial volumes through third-party payment institutions, regulators need to understand where customer money originates, how it enters the gambling ecosystem and where it ultimately goes.

The presence of multiple intermediaries can make this more difficult. Funds may move between customer accounts, payment processors, gambling accounts and bank accounts before being withdrawn or transferred elsewhere.

Effective monitoring therefore requires more than identifying individual transactions that exceed a fixed threshold. Patterns of behaviour can be considerably more informative.

Examples could include rapid deposits and withdrawals, unusually high transaction volumes, multiple accounts linked to the same customer or device, transactions involving unrelated third parties, inconsistent customer activity and transfers involving higher-risk jurisdictions.

The regulatory developments also have implications for casinos' internal governance. A business cannot effectively manage financial crime risk if compliance is treated as a separate function with limited access to operational information.

Senior management needs to understand the casino's customer base, payment flows, business partners and exposure to higher-risk activities. Compliance teams should have sufficient authority to investigate unusual activity and escalate concerns.

The suspension may also accelerate the adoption of stronger digital monitoring systems. The government has specifically indicated that digital infrastructure will form part of the measures developed before online betting can resume.

This could include improved customer identification, transaction monitoring, digital recordkeeping, technical controls and mechanisms for sharing information with regulators and law enforcement.

Technology, however, will not eliminate the underlying compliance risks. Digital systems can identify patterns, but operators still need appropriate policies, trained personnel and clear procedures for investigating alerts and reporting suspicious activity.

The Cambodian authorities' approach also demonstrates how gambling regulation is increasingly converging with broader financial crime regulation. Gaming regulators are no longer concerned solely with whether games are fair or whether operators comply with licensing conditions. They are increasingly expected to prevent their facilities and platforms from being used by organised criminal groups.

This is particularly important in jurisdictions where casino properties may operate alongside other commercial activities. Regulators must consider whether the gambling licence provides a legitimate business structure that can be exploited to disguise unrelated criminal activity.

The wider crackdown has already resulted in individual casino licences being revoked following allegations of involvement in online scams and other illegal activities. In one case, Cambodian authorities revoked a casino licence after an investigation uncovered alleged online scam activity as well as illegal possession of weapons and narcotics.

The government's actions therefore suggest that the distinction between a casino operator and activities taking place within its premises is becoming less significant from a regulatory perspective.

Operators may increasingly be expected to demonstrate that they have effective oversight of their entire premises and business ecosystem, rather than simply ensuring that the gambling products themselves comply with licensing requirements.

This creates particular challenges for casino operators that lease space or facilities to third parties. Where external businesses operate from casino premises, operators may need to conduct stronger due diligence and maintain effective oversight to ensure that the property is not being used for unauthorised or criminal activities.

For international investors and gaming groups, Cambodia's changing regulatory environment should also be considered as part of wider country and counterparty risk assessments.

The country was removed from the Financial Action Task Force's grey list in 2023 after completing an action plan designed to address deficiencies in its AML and counter-terrorist financing framework. Cambodia's next FATF evaluation is expected in 2029.

The strengthening of casino supervision could therefore form part of a broader effort to demonstrate that improvements achieved in Cambodia's AML framework are being maintained and embedded across higher-risk sectors.

The October suspension is unlikely to be viewed simply as a temporary operational restriction. It is better understood as part of a broader restructuring of the country's approach to casino regulation.

The combination of an online betting suspension, stricter action against scam-linked casinos and the development of a new licence-renewal suitability framework points towards a regulatory model in which operators will face significantly greater scrutiny of their overall integrity and compliance arrangements.

For casino operators, the immediate priority will be determining how to comply with the October suspension. The longer-term challenge will be demonstrating that their business models, governance structures and financial controls can satisfy a regulator increasingly focused on financial crime risks.

Operators seeking to resume online betting in the future should expect that regulatory approval may depend not only on technical capabilities but also on the ability to demonstrate effective customer due diligence, transaction monitoring, responsible gambling controls, financial transparency and cooperation with authorities.

For banks, payment institutions and other financial businesses dealing with Cambodian casinos, the developments also warrant closer monitoring. Customer risk assessments may need to reflect the possibility of changes to casino revenue models, corporate structures and payment flows following the suspension.

The suspension could also cause operators to redirect activity through alternative jurisdictions or business models. Financial institutions should therefore remain alert to sudden changes in transaction patterns, new counterparties, unexplained transfers or changes in the stated purpose of corporate accounts.

The most significant question is ultimately what happens after October. The government has left open the possibility of resuming online betting once the necessary controls are in place, meaning the measure is not necessarily a permanent prohibition.

However, any future reopening is likely to occur under a considerably more stringent framework than the one that existed previously.

Cambodia's latest move sends a clear message to the casino industry: the ability to hold a gambling licence will increasingly depend on demonstrating that the entire operation is capable of resisting financial crime, fraud and other illicit activity.

For operators, that means AML compliance can no longer be viewed as a back-office regulatory requirement. It is becoming an integral part of the licence, the business model and the operator's ability to remain in the Cambodian market.

By fLEXI tEAM