Donaco International Limited is grappling with significant operational challenges at its Star Vegas casino in Poipet, Cambodia, due to heightened tensions along the Thailand-Cambodia border.
The disruptions stem from a brief military clash on May 28th, 2025, which escalated long-standing territorial disputes between the two nations. In response, the Thai government introduced stringent border restrictions starting June 8th, impacting cross-border movement and directly affecting Donaco’s flagship casino located near the Aranyaprathet-Poipet border checkpoint.
The measures include reduced operating hours at key border crossings and a ban on Thai nationals crossing into Cambodia for non-essential purposes, such as tourism and gambling in border town casinos like those in Poipet. As a result, Star Vegas has experienced a sharp decline in activity, with a 62 percent reduction in average daily headcount and a 42 percent drop in daily hotel occupancy since the restrictions took effect. These declines are expected to significantly impact the casino’s profitability for June.
Despite commitments from both governments to resolve the tensions, bilateral talks on June 14th failed to yield a resolution, leaving underlying disputes unresolved. While the situation remains relatively calm, the ongoing restrictions continue to limit cross-border traffic, a critical driver of Star Vegas’ customer base. Donaco’s management is closely monitoring developments and has pledged to keep shareholders informed as the situation evolves.
