Poipet casinos see sharp drop in visitors after Thai border ban

IAG reveals 42% drop in hotel occupancy and 62% reduction in staff at Poipet casino hotels after Thailand bans workers and gamblers from crossing the border.

Inside Asian Gaming (IAG) has published an analysis highlighting the ongoing tensions between Thailand and Cambodia, which have had a significant impact on the border region’s businesses, especially the casino and hotel industry in Poipet, Cambodia.

Following Thailand’s announcement to ban its citizens from crossing the border into Cambodia's casino and entertainment venues, hotel occupancy rates in Poipet dropped sharply by 42%.Donaco International Limited, the operator of the Star Vegas casino, one of the largest casinos in Poipet, revealed on June 17, 2025, that since Thailand began enforcing stricter border measures last week, its hotels had been severely affected, with average occupancy rates falling by 42% in just one week.

Furthermore, the number of daily casino staff decreased by a staggering 62%, with the majority being Thai workers who were unable to cross the border due to the restrictions imposed by Thailand’s Burapha Task Force, effective from 8am on June 17.

The ban was put in place to safeguard Thai citizens amidst growing distrust between the two nations, sparked by a military clash on May 28, which resulted in the death of a Cambodian soldier.

Previously, the Thai government had already started limiting cross-border travel for non-essential activities, such as tourism and gambling, particularly to Poipet, which has long been a popular destination for Thai gamblers.Although both countries have expressed their intention to resolve the border dispute through negotiations, a joint meeting on June 14 failed to conclude, leaving the situation still sensitive and having a clear negative impact on the local economy. The hotel industry, in particular, relies heavily on Thai tourists and workers.
 
Donaco has warned that the continued drop in hotel occupancy and the significant loss of casino patrons in Poipet could inevitably affect the company’s overall revenue for June.

IAG further noted that the ongoing situation coincides with Thailand's exploration of the potential for legalising casinos within its borders. If successful, this move could alter the travel dynamics of Thai gamblers and reduce security risks associated with reliance on foreign casinos.

For businesses in Poipet, however, the impact is already being felt, with hotel occupancy plunging by 42%. This could signal a short-term crisis exacerbated by the unresolved border tensions.

Donaco's revenue decline continued into Q1 2025

Additional information from IAG reveals that, on April 29, 2025, Donaco, listed on the Australian Stock Exchange (ASX), reported a 10% drop in its total revenue for Q1 2025, falling to approximately US$6.4 million. This decline was attributed to poor performance within the VIP customer segment at Star Vegas Casino in Poipet.

The report highlighted that Star Vegas' net revenue fell by 28.7% compared to the previous year, and by 12.4% from Q4 2024, despite a slight increase in the number of players from 872 to 928. The total number of players in Q1 decreased slightly to 957 from 1,033 in the previous quarter.

Donaco noted that Star Vegas suffered losses from its VIP segment, with a negative win rate of -1.5%, which caused the casino’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) to drop nearly 50%, down to approximately US$2.2 million.

Meanwhile, Donaco's Aristo International Casino, located near the northern Vietnam-China border, maintained stable net revenue of approximately US$2.4 million, with an EBITDA of approximately US$1.5 million.

Additionally, Donaco managed to bolster its liquidity in Q1 2025, increasing its cash reserves from US$23.3 million to US$25.7 million.

(2025/06/18-00:00)