Star Vegas Faces Decline as Thai Border Rules Tighten

Star Vegas Casino Sees Sharp Drop After Thai Border Crackdown

Star Vegas, the flagship casino of Donaco International in Poipet, Cambodia, is facing serious challenges following recent restrictions on border crossings imposed by the Thai government. These measures, introduced on June 8, followed a military incident on May 28 near the Thai-Cambodian border, heightening long-standing territorial tensions.

The new rules limit crossing hours at major checkpoints, such as Aranyaprathet-Poipet, and ban non-essential travel—particularly tourism and casino-related visits. These restrictions have hit Star Vegas hard, as the casino heavily depends on Thai nationals who frequently cross the border to gamble, since casino gambling remains illegal in Thailand.

Since the restrictions came into effect, Donaco has reported a 62% drop in daily visitors and a 42% decline in hotel occupancy. The company has warned investors that this trend could continue throughout June, significantly affecting overall performance.

Border Tensions Highlight Risks for Cross-National Casinos

Star Vegas is located in Poipet, a border town that acts as a key transit hub between Cambodia and Thailand. The recent events underscore the volatility that border casinos face. Political or military tensions—even temporary ones—can lead to immediate and lasting revenue disruption.

On June 14, Thai and Cambodian officials met for bilateral talks aimed at de-escalation, but no formal resolution was reached. Both governments expressed a desire to avoid further conflict. Donaco stated it will monitor the situation closely and keep shareholders informed, stressing the need for flexibility in such high-risk geographic areas.

Thailand’s Casino Industry on the Verge of Legalization

While Star Vegas struggles with reduced traffic, Thailand is preparing for a dramatic shift in its own gaming laws. The government is considering legalizing land-based casinos as part of broader integrated resorts. These complexes would blend casinos with hotels, retail, and entertainment—targeting both tourists and investors.

Under proposed frameworks, foreign visitors would gain unrestricted casino access, while Thai citizens would pay a high entry fee to curb gambling addiction. Licensing would be tightly regulated, with strict taxation policies ensuring transparent revenue streams and long-term viability.

Analysts estimate that legal casinos could boost tourist spending by over 50%, adding billions to Thailand’s economy. However, experts caution that proper oversight will be key to minimizing social harm and ensuring the industry’s sustainable growth.

As Thailand prepares to enter the regional casino market, it could soon rival leaders like Macau and Singapore—reshaping the gambling landscape in Southeast Asia.