At the edge of the game: The economic ecosystem of casinos in the Cambodia-Thailand corridor

Between the Cambodian provinces of Poipet, O Smach, Pailin and Koh Kong, and the border districts of Thailand, lies an archipelago of casinos that forms a discreet but central part of the regional economy.

Far from the eyes of Thai authorities—for whom gambling remains illegal—these establishments attract hundreds of thousands of Thai visitors every year, generating considerable financial flows and a parallel economy of employment, real estate and cross-border trade.

An empire of 150 casinos along the border

Cambodia is now home to around 150 casinos, the vast majority of which are concentrated near the Thai border, earning it the nickname of the regional gambling capital.

In Poipet alone, the beating heart of the border industry, there are dozens of complexes such as Holiday Palace, Grand Diamond City and Star Vegas Resort. Officially, only foreigners are allowed to gamble in these establishments; in practice, Thai customers account for more than 90% of daily users—an addiction that illustrates the porosity of the borders and the market's ingenuity.

Huge profits and tax revenues

This industry is highly lucrative, both for private investors and the Cambodian state. In 2024, casinos and gambling activities generated more than $63 million in tax revenues for Phnom Penh, in addition to private profits estimated at several billion dollars each year for operators. Some analysts argue that up to 40% of the GDP of border provinces could depend directly or indirectly on this sector, including casinos, call centres and related businesses.

A cross-border employment driver

Tens of thousands of jobs revolve around these gambling empires. Before the recent restrictions, it was common for 10,000 to 20,000 Thai workers to cross the border daily to work as croupiers, administrative staff, hotel workers, drivers, security guards, cooks or cleaners. On the other side, Cambodians benefit from indirect jobs in catering, transport, street vending, technical maintenance and laundry.

A fragile status quo shaken by conflict

Since May-June 2025, military tensions have changed the situation. On 17 June, the Thai army banned Thai nationals from working or gambling in casinos in Poipet and other border towns, causing traffic to plummet (-62% for Star Vegas) and a sharp drop in revenue (-31% in the second quarter for the most exposed casinos).

The reasons given are officially national security and the fight against organised crime and ‘scam centres’—but the economic impact is considerable, both on the Cambodian side and on the Thai side, where many households depended on this cross-border income.

The interests of the Thai army

Should we believe that the Thai army is benefiting from this ecosystem? The answer is nuanced. Officially, the army is cracking down on the phenomenon, concerned about the country's security and reputation. In reality, the recent closure of the borders reflects a concern for security and political control rather than structured opposition to the sector as such. As long as the gambling sector was tolerated and channelled, it offered certain official or parallel networks opportunities for substantial income. But political rivalry, social pressure and mistrust associated with certain casinos eventually prevailed.

At the crossroads of profit and diplomatic instability, the border casino economy embodies the complexity of relations between Cambodia and Thailand. A driver of development for some, an informal octopus for others, it is now caught up in the turmoil of military conflicts and authoritarian responses that could ultimately undermine one of the most powerful economic levers of contemporary Cambodia.