Donaco International’s Star Vegas casino in Poipet, Cambodia, is grappling with a sudden and sharp downturn in business following the Thai government’s new border restrictions. The move stems from renewed military tensions between Thailand and Cambodia, notably a brief armed clash near the Poipet border on 28 May 2025.
Thailand Imposes Ban on Non-Essential Border Crossings
In response to the border incident, the Thai government enacted a temporary ban on non-essential travel across checkpoints, including the Aranyaprathet-Poipet crossing, beginning 8 June 2025. Thai nationals are now restricted from crossing into Cambodia for leisure purposes, including casino gambling and tourism—activities that represent the core demographic for many border town operations like Star Vegas.
This is a major blow to Donaco’s flagship property, which relies heavily on Thai clientele due to the country’s domestic ban on casinos. Thai patrons typically make up the bulk of the customer base at Poipet’s gaming venues, drawn by proximity and convenience.
Business Impact: Drastic Decline in Footfall and Hotel Occupancy
Since the border policy was enforced, Donaco has reported a 62% drop in daily headcount and a 42% fall in hotel occupancy at Star Vegas. The company acknowledged that the downturn will likely have a material impact on June’s financial performance. With cross-border traffic severely limited, revenues are expected to nosedive unless the restrictions are swiftly lifted or eased.
While Donaco continues to operate, the reduced volume poses significant operational and cash flow challenges. The incident is a stark reminder of the geopolitical sensitivities that border-based gaming enterprises face.
Ongoing Diplomatic Talks Offer Cautious Optimism
Although bilateral negotiations were held on 14 June between Thai and Cambodian officials, no formal resolution was reached. However, both governments have expressed a commitment to de-escalation and stability. For Donaco, the immediate strategy is to monitor the situation and update stakeholders regularly on material changes.
Geopolitical Risk: A Recurring Challenge for Border Casinos
This is not the first time Star Vegas has been affected by external political forces. The casino sector in Poipet has historically been exposed to border disputes, visa policy shifts, and fluctuating cross-border relations. These risks underscore the vulnerabilities of casino models that depend heavily on international footfall, particularly from regions with unresolved political tensions.
Looking forward, Donaco’s management may need to consider long-term risk mitigation strategies, including diversifying clientele, enhancing digital or remote offerings, or exploring new partnerships less reliant on Thai traffic.
As border dynamics evolve, the case of Star Vegas serves as a critical example of how external, non-market forces can rapidly disrupt even well-established gaming operations.
