Thailand’s Border Restrictions Hit Star Vegas Casino’s Numbers

Operations at Donaco International’s Star Vegas casino in Poipet have suffered a sharp decline after the Thai government imposed new restrictions on border crossings. These measures, enacted on 8 June, came in response to a military clash near the Thailand-Cambodia border on 28 May, reigniting longstanding territorial tensions between the two countries.

The Thai government’s restrictions include reduced crossing hours at major checkpoints such as Aranyaprathet-Poipet and a ban on Thai nationals crossing the border for non-essential reasons, explicitly targeting tourism and casino visits. This has directly impacted Star Vegas, which relies heavily on Thai customers, given that
casino gambling remains illegal in Thailand.

 

Metric	Change Since June 8 Restrictions
Average Daily Headcount	-62%
Hotel Occupancy Rate	-42%

 

The Developments

Donaco International reported a 62% drop in the average daily number of visitors and a 42% decline in hotel occupancy at Star Vegas since the restrictions took effect. The company has warned that these figures are expected to negatively affect the casino’s performance throughout June.

Located in Poipet, a border town that serves as a gateway between Cambodia and Thailand, Star Vegas draws a substantial portion of its clientele from Thailand. The new restrictions highlight the operational risks faced by border-based casinos, which remain vulnerable to shifts in geopolitical relations.

In response to the escalating tensions, Thai and Cambodian officials held bilateral talks on 14 June, although these discussions did not result in a formal resolution. Both governments have signaled their intention to de-escalate the situation. Donaco has stated it will continue to monitor the situation closely and keep its shareholders updated on developments. This latest disruption underscores the fragile balance that casinos operating in geopolitically sensitive border areas must navigate, where external political events can swiftly affect business operations and revenue streams.

 

Legalizing casinos presents a major opportunity to boost tourism and economic growth in Thailand, but it must be balanced with strong regulations to address potential social risks.

 

Industry is still booming

On the other hand, Thailand’s casino sector is on the cusp of significant expansion, driven largely by the government’s recent moves to legalize casino gambling within the country. Historically banned, casino operations are now being considered as part of integrated entertainment complexes that combine hotels, shopping, and other attractions. This shift aims to capitalize on the potential to attract a larger influx of tourists, boost foreign investment, and stimulate economic growth, especially in tourism-dependent regions.

The proposed regulations are designed to strike a balance between economic benefits and social concerns. While foreign visitors would have unrestricted access to casinos, Thai nationals are expected to face a substantial entry fee, intended to limit potential social harms such as gambling addiction. The government also plans to impose strict licensing rules and tax structures on casino operators to ensure transparency and sustainable revenue streams. This cautious but progressive approach reflects the desire to capture the financial upside of legalized gambling while managing its risks.

Industry analysts project that the legalization of casinos could markedly increase tourist spending, with some estimates suggesting visitor expenditure could rise by over 50 percent. This boost in tourism revenue has the potential to add billions of dollars annually to Thailand’s economy, enhancing GDP growth and creating new jobs. However, experts caution that the success of this sector will depend heavily on effective regulatory oversight and the government’s ability to mitigate associated social challenges. Overall, Thailand is positioning itself to become a competitive player in the regional casino market, challenging established hubs such as Macau and Singapore.