Since January 2025, a peculiar phenomenon has emerged in Lashio, controlled by the Myanmar National Democratic Alliance Army (MNDAA) — despite Myanmar's laws explicitly banning gambling, gambling venues have been expanding at an astonishing rate under the tacit approval or even official authorization of the MNDAA. Initially disguised as "festival activities" such as Pagoda Festivals and Lunar New Year celebrations, these casinos have now evolved into independently operated legalized industries, directly taxed by the MNDAA.
Legalization of Gambling Under the Guise of Festivals
MNDAA initially allowed gambling venues to attach to traditional festival activities, such as:
Pagoda Festival (lasting 10 days, actually becoming a peak gambling period)
Lunar New Year celebrations (casinos take the opportunity to operate long-term)
The upcoming Water Festival (April 13-17, MNDAA plans to hold a large event at the city hall, expecting further expansion of casinos)
A resident of Lashio told the Shan Herald, "They use celebration activities as an excuse, but in fact, gambling venues have been operating for nearly three months. Now, casinos are everywhere in Lashio, and no one has been managing them since January."
However, the expansion of the gambling industry has not stopped at "festival cover." MNDAA has recently gone further, directly authorizing and taxing independent casinos, allowing them to operate openly. These venues offer a variety of gambling games, including:
Slot Machines
Baccarat
Illegal Lottery
Social Issues Intensify: Surge in Crime and Expansion of the Sex Industry
With the boom of the gambling industry, the public security in Lashio is rapidly deteriorating:
Increase in theft and robbery
After losing all their money, gamblers turn to crime, targeting ordinary residents and even funeral attendees for theft
A local said, "Now thieves are rampant, even funerals have become targets."
Publicization of the sex industry
Prostitutes openly solicit business on the streets, and some areas even post advertisements
The number of KTVs, massage parlors, and brothels has surged, forming a "complementary industry" with casinos
Law enforcement vacuum
MNDAA only taxes, does not regulate, leading to the infiltration of gang forces
The police (if present) are powerless to intervene, as MNDAA effectively controls judicial power
MNDAA's Financial Calculations: Taxation Over Regulation
Analysts point out that the core motive for MNDAA allowing the development of the gambling industry is financial revenue:
Casino taxation: Each gambling table pays a fixed fee monthly
Sex industry cut: KTVs and massage parlors must pay "protection fees"
Black market economy: Money laundering, usury, and other derivative businesses further enrich MNDAA's coffers
This model is highly similar to other armed-controlled areas in northern Myanmar (such as Kachin and Wa states), which obtain funds through gray industries to sustain military and political operations.
Future Trends: Water Festival May Become a New Peak for the Gambling Industry
MNDAA has announced that it will hold a large Water Festival celebration from April 13-17, planning to attract tourists with traditional dances and music performances. However, local residents are concerned:
Casinos may take the opportunity to expand further
The crime rate may climb with the increase in tourists
The sex trade may become more publicized
International Observation:
The United Nations Office on Drugs and Crime (UNODC) has warned that the gambling and human trafficking networks in northern Myanmar have formed a transnational crime chain. The legalization of gambling in Lashio could make the city a new regional crime hub.
Conclusion: How Far Can Lashio's "Casino Road" Go?
MNDAA's gambling policy may bring tax revenue in the short term, but in the long run, it may lead to more serious social problems:
Breakdown of public order: If the crime rate continues to rise, ordinary residents will be the first to suffer
International pressure: The central government of Myanmar or ASEAN may intervene and exert pressure
Internal divisions within the armed group: Some MNDAA members may oppose excessive reliance on the gray economy
The future of Lashio stands at the crossroads of a "casino economy" and social stability.
