Thousands of Chinese nationals have begun openly running extensive gambling operations in the town of Payathonzu, also known as Three Pagodas Pass, located in Kyainseikgyi Township, Karen State along the Thailand-Myanmar border. According to the report of Burma News International, residents have observed a significant influx of Chinese citizens since May, with the numbers now reaching into the thousands.
The report further said that the increase in Chinese nationals corresponds with a notification issued by the Border Guard Force (BGF) in Shwe Kokko, Myawaddy Township, Karen State. This notification required foreigners involved in gambling and telecom scamming (Zhapian) activities to leave by October. Consequently, many Chinese nationals have relocated to Payathonzu.
Renting and purchasing property
Currently, these Chinese nationals rent houses, dormitories, and guesthouses at high prices in downtown Payathonzu. Additionally, they are acquiring prime land plots to build luxury residences. Areas like Kyaung Gate Tan, controlled by the Democratic Karen Benevolent Army (DKBA), have been bluntly designated for gambling activities.”
Chinese nationals arriving from Thailand with passports and proper documentation, as well as those transported via the Myawaddy-Mawlamyine-Payathonzu Road through arrangements between the BGF and DKBA, are now settling in Payathonzu. Reports indicate that DKBA and BGF charged up to 100,000 Thai Baht (€2,544) per Chinese citizens for transportation services.
Proliferation of gambling businesses
Organisations monitoring ethnic armed groups in the region have reported that casinos and gambling businesses are flourishing in Payathonzu, primarily operated by Chinese nationals and individuals associated with the DKBA and BGF. An analyst noted that the gambling operations involve not just Chinese nationals but also affiliates of the DKBA.
Local concerns and economic impact
Residents are alarmed by the proliferation of gambling activities. A local reported that the minimum bet can start at just 100 or 200 Thai Baht (€2.54 to €5.09), attracting manual labourers and young people to gamble. The report added that local businessmen are also worried that the influx of Chinese nationals operating gambling businesses will dominate the town’s economy.
In addition to junta troops, various armed groups including 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 the People’s Defense Force (PDF) are active in Payathonzu, contributing to the complex and volatile situation.
Regulatory shift
The enactment of the Gambling Law 2019 marked a significant shift in Myanmar‘s gaming industry, permitting companies to operate casinos under stringent regulations. The primary goals of the law are to safeguard players and boost tourism. As a result, casinos are increasingly viewed as valuable sources of revenue and employment.
Most of these casinos are strategically located near Myanmar’s borders, primarily attracting visitors from neighbouring China and Thailand. This geographical positioning capitalises on the influx of international guests, stimulating local economies and providing numerous job opportunities in the hospitality and gaming sectors.
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