NagaCorp Ltd. (03918.HK) expects Cambodia to put in place a moderate 5 to 7 percent gambling tax in the country, the Hong Kong Economic Journal reported.
The gaming firm’s chairman, Timothy McNally, was quoted as saying that Cambodia is likely to approve and pass a gambling bill in the current quarter.
The bill is right now in the drafting stage.
NagaCorp, which operates a huge casino resort and other facilities in Cambodia, estimates that its tax bill last year would amount to about 2 percent of its revenue.
Though the company will face higher tax rate going forward, it will not deter NagaCorp from pursuing its business development plans in the South East Asian country, McNally said.
NagaCity Walk, a gaming and entertainment complex, is scheduled for launch in August. The facility aims to attract middle class visitors.
NagaCorp, meanwhile, is also eyeing opportunities in Thailand and Vietnam. Elsewhere, the company plans to enter Cyprus.
As of now, the company derives 44 percent of its revenue from the VIP segment. It enjoys gross margin of 19 percent in the segment, compared with 57 percent in mass tables.
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