Donaco’s Star Vegas hit by Thai border curbs; expert warns of deeper risks
Amid heightened tensions along the Cambodia–Thailand border, operations at Donaco International’s Star Vegas casino in Poipet have taken a major hit due to newly imposed travel restrictions by the Thai government.
The measures, which came into effect on 8 June, follow a brief military clash on 28 May near the tri-border area shared by Cambodia, Thailand, and Laos. In response, Thai authorities reduced operating hours at major checkpoints—including the critical Aranyaprathet–Poipet crossing—and prohibited Thai nationals from crossing the border for non-essential purposes such as tourism and casino visits.
The impact on Donaco’s flagship property has been immediate. The company reported a 62% reduction in average daily headcount and a 42% drop in hotel occupancy at Star Vegas since the restrictions began. These declines are expected to weigh on the venue’s June performance.
No breakthrough from bilateral talks
While both governments have indicated a willingness to resolve the tensions, bilateral talks held on 14 June ended without a resolution.
Donaco said it is continuing to monitor the situation closely and will keep shareholders informed. With Star Vegas heavily reliant on Thai visitors, the current disruption highlights the broader exposure and fragility of border-dependent casino operations.
Expert: Fallout extends beyond footfall
Commenting on the disruption, Riaan Van Rooyen—CEO of Aria International and a veteran hospitality and casino executive—told SiGMA World that the fallout extends far beyond just footfall and hotel metrics. Drawing on his experience leading border-based operations in volatile markets, he outlined the broader operational, strategic, and investor-level implications facing Donaco.
SiGMA World: How damaging is a 62% drop in daily headcount for a border casino like Donaco’s DNA Star Vegas, and what immediate operational strategies would you recommend in such a scenario?
Riaan van Rooyen, CEO of Aria International: A 62% drop in daily headcount is significant, but it’s important to remember that in our world, volume doesn’t always equal value. I’ve run operations where a dozen casual players barely matched the revenue of a single returning VIP on a baccarat table. The real damage comes not just from the numbers – but from the knock-on effect it has on hotel occupancy, food and beverage revenue, dealer morale, and the atmosphere that gamblers thrive on.
In such cases, the first question I’d ask is:
Do we have a playbook ready for risk events like this? Because we should.
Any sound operator, board, or shareholder group ought to have a documented risk mitigation plan—border closures, civil unrest, regulatory shifts – none of these are new threats.
Operationally, the immediate priorities are to protect cash flow, consolidate underperforming cost centres, and hold onto your highest-value patrons. I’ve personally implemented VIP “direct-to-suite” campaigns in similar situations – inviting top-tier players to travel in small groups with private handling, even during tense periods. Those actions, while not volume-driven, protect your revenue base and reputation.
SiGMA World: Given the Thai government’s travel restrictions, how can Donaco mitigate its reliance on Thai tourists and attract alternative customer segments in the short to medium term?
Riaan: The current Thai travel restrictions have created an acute shortfall in cross-border movement – but this scenario also serves as a wake-up call to reduce overdependence on a single market. Operators in border towns often become so accustomed to predictable traffic flows that diversification becomes a theoretical idea rather than a strategic imperative.
In the short- to medium-term, Donaco should implement a multi-pronged strategy to diversify customer inflow while simultaneously strengthening brand equity in adjacent markets. Here’s how that could look:
Re-target local and regional feeder markets: Vietnamese and Laotian mid-tier players can be tapped through tailored promotions, especially through bus-in packages and “stay & play” bundles. When I managed a property in a border region in Africa and even Europe, we saw remarkable success running low-barrier transport-inclusive offers with local travel agents. It reduced friction and created new gaming habits.
Domestic Cambodian market is often overlooked due to assumptions about disposable income – but don’t underestimate emerging middle-income players, especially those already engaging with digital platforms or local underground games.
Develop compelling “value-added” offers: Instead of discounting room nights or gaming credits blindly, craft experiences: 2-night themed casino stays, with spa treatments, entertainment, or dining layered in. In a previous role, we created “Jackpot Escape Weekends,” which included gaming vouchers, buffet dinner, and a mini tournament – booking conversion rose 23% in the first 6 weeks.
Loyalty exchange partnerships with hotels, resorts, and retail groups in non-gaming jurisdictions can encourage trial from new player segments.
Bridge land-based and iGaming ecosystems: Many land-based operators wrongly see iGaming as the enemy – but in reality, it’s a natural bridge when physical access is restricted.
Integrate player wallets and loyalty across online and offline platforms. For instance, offering players the chance to earn land-based hotel perks through online play maintains engagement and keeps the property in the front of their minds. I was involved in one such dual-integration model which helped retain 47% of a VIP database during a prolonged access crisis.
Strategic marketing beyond traditional channels: Use digital micro-targeting to reach Cambodian and Vietnamese ex-pats or frequent travellers who previously bypassed Poipet. Social media, Google Display Ads, and influencer campaigns have a surprisingly good conversion rate in Asia when tied to incentives.
Offer tier-based promotions – invite “trial” VIPs from other regions, even if it means subsidising initial visits. One of my former casino clients flew in 15 test VIPs from Jakarta with 50% of expenses covered. 9 became repeat visitors within two months.
Private and secure high-value travel: For true VIPs, especially those spooked by unrest, arrange private or semi-private transfers with on-call hosts. In 2019, during a politically sensitive period in another Asian jurisdiction, we ran luxury coach and van services from secure drop-off points and even negotiated “soft checkpoint” access with local officials for verified customers.
In summary, Donaco needs to flip the narrative from loss to opportunity. Every disruption is a chance to reevaluate assumptions. The Cambodian market is maturing, Vietnam is showing upward trends, and border-driven casinos must evolve from being passive recipients of Thai footfall to proactive creators of demand in new segments.
If you approach this not just as a tactical marketing challenge, but as a repositioning of your customer DNA, you’ll emerge leaner, smarter, and less vulnerable to future shocks.
SiGMA World: How do geopolitical tensions like the Cambodia–Thailand border clash affect investor sentiment and M&A interest in regional gaming operations?
Riaan: Investors don’t like uncertainty, especially in an industry already perceived as high-risk. When geopolitical tensions arise, we often see valuations drop – not just because of current losses, but due to perceived fragility.
That said, sophisticated investors don’t flee – they recalculate. If Donaco has a solid crisis plan, diversified revenue lines, and transparent communication with shareholders, it can weather the sentiment storm. I’ve worked with investors in Southeast Asia who stayed in deals because the operator was upfront about risks and showed how they’d pivot.
But make no mistake -deals can stall, funding can dry up, and buyers can use the instability to negotiate down. The more prepared and proactive the operator, the better they’ll fare.
SiGMA World: With Donaco also operating in Vietnam, do you believe regional diversification is now more critical than ever for casino firms facing cross-border volatility?
Riaan: Absolutely – diversification is no longer optional; it’s critical. Vietnam gives Donaco a safety valve, but it needs to be more than just a geographical fallback – it should be a fully integrated part of their growth strategy.
During my time advising a multi-property operator across Southern Africa, we saw how political instability in one country completely shut down cross-border movement. Because we had alternate operations in place, we shifted marketing and resources to those locations within a week, preserving over 60% of projected revenue for the quarter.
Donaco must do the same – align product offerings, unify loyalty programs, and create a seamless customer experience across jurisdictions. The more frictionless that ecosystem becomes, the more resilient they’ll be.
SiGMA World: How should casino operators balance crisis response with long-term recovery planning during unexpected events like border clashes?
Riaan: The key is dual tracking: stabilise in the short term, while planting seeds for long-term growth. Operators often fall into a reactive loop – cutting costs, scaling down, and waiting. But that’s not leadership. That’s survival mode.
At the heart of any meaningful recovery is understanding player psychology. Gamblers are creatures of habit, but also highly emotional. If their favourite casino becomes hard to access or feels unsafe – even temporarily – they’ll quickly pivot to alternatives, often digital. And once they’re gone, winning them back isn’t easy and extremely costly.
That’s why I always advise operators to maintain constant communication – SMS, WhatsApp, tailored digital promotions, VIP calls – even during downtime. Let them know you’re still thinking about them. And when you reopen, don’t just restart – relaunch. Give players a reason to return and bring someone new.
As Donaco navigates this period of uncertainty, the insights shared by Riaan Van Rooyen offer a clear reminder that resilience in border-based gaming hinges not only on traffic flow—but on agility, communication, and long-term strategic clarity.
