Thousands of Chinese citizens have already started to openly operate large-scale gambling businesses in Payathonzu, a town in Kayin State on the Myanmar-Thailand border.
According to Myanmar News International, since May, residents have observed a significant influx of Chinese nationals, with the numbers now in the thousands.
The report states that the increase in Chinese citizens is linked to a notice issued by the Border Guard Force (BGF) in Shwe Kokko, Myawaddy Township, Kayin State. The notice required foreigners involved in gambling and telecommunications fraud to leave by October. As a result, many Chinese nationals have relocated to Payathonzu.
Renting and Buying Properties
Currently, these Chinese citizens are renting houses, dormitories, and hotels at high prices in the urban area of Payathonzu. Additionally, they have purchased prime land to build luxury residences. Areas controlled by the Democratic Karen Benevolent Army (DKBA), such as Kyaung Gate Tan, have been specifically designated for gambling activities.
Chinese citizens entering from Thailand with passports and legal documents, as well as those transported along the Myawaddy-Mawlamyine-Payathonzu route through arrangements between the BGF and DKBA, are now settling in Payathonzu. It is reported that the DKBA and BGF charge up to 100,000 Thai Baht (€2,544) per Chinese national for transportation services.
Expansion of Gambling Operations
Agencies monitoring ethnic armed groups in the region report that casinos and gambling operations are thriving in Payathonzu, primarily run by Chinese nationals and individuals associated with the DKBA and BGF. An analyst noted that these gambling activities involve not only Chinese citizens but also affiliates of the DKBA.
Local Concerns and Economic Impact
Residents are alarmed by the expansion of gambling activities. A local reported that the minimum bets start from 100 or 200 Thai Baht (€2.54 to €5.09), attracting laborers and young people to participate in gambling. The report added that local businessmen are also concerned that the influx of Chinese nationals operating gambling businesses will dominate the town's economy.
In addition to the military government forces, various armed groups such as the DKBA, BGF, Karen National Union (KNU), Karen National Union/Karen National Liberation Army – Peace Council (KNU/KNLA-PC), New Mon State Party (NMSP), and People's Defense Forces (PDF) are active in Payathonzu, leading to a complex and unstable situation.
Regulatory Changes
The enactment of the 2019 Gambling Law marked a significant shift in Myanmar's gambling industry, allowing companies to operate casinos under strict regulation. The main goal of this law is to protect players and promote tourism. Consequently, casinos are increasingly seen as important sources of revenue and employment.
Most casinos are strategically located near the Myanmar border, primarily attracting tourists from neighboring countries like China and Thailand. This geographical positioning leverages international traffic, stimulates the local economy, and provides numerous job opportunities in the hotel and gambling industries.
