The billion-Baht casino empire: How Thai-Cambodia border tensions expose hidden networks of power
BANGKOK: Recent border tensions between Thailand and Cambodia have inadvertently exposed a sprawling network of influential figures who have built a multi-billion baht casino empire along the frontier, according to explosive new research from the Centre for Gambling Problem Studies.
The territorial dispute, which erupted into clashes at Chong Bok in Ubon Ratchathani province and led to reduced border crossing hours from Saturday (June 7), has disrupted what investigators describe as a "massive profit network" hidden behind the Thai-Cambodia frontier.
The Koh Kong Kingdom
At the heart of this investigation lies the Koh Kong Resort casino, located just 800 metres from Thailand's permanent Khlong Yai border crossing in Trat province. The operation is owned by "Oknha Ly Yong Phat," known in Thailand as "Pad Suphapa" or "Sia Pad," a Cambodian senator and businessman of Chinese-Thai descent.
Sia Pad controls tens of thousands of rai through his LYP Group, one of Cambodia's largest corporations under the Li So company umbrella.
Beyond casinos and hotels, his business empire encompasses industrial estates, fruit centres, commercial buildings, private roads, and river bridges.
Most significantly, the research identifies Sia Pad's connection to former Cambodian Prime Minister Hun Sen, described as his "elder brother" and political patron.
This relationship reportedly began when Sia Pad supported Hun Sen's political campaigns in Koh Kong province, leading to electoral victory and Sia Pad's subsequent appointment to Cambodia's highest royal title of "Oknha."
The Poipet Powerbrokers
Cambodia now hosts approximately 150 casinos, making it Southeast Asia's gambling capital, with most concentrated along the Thai border.
The largest hub is Poipet in Banteay Meanchey province, opposite Thailand's Aranyaprathet district in Sa Kaeo, where an estimated 80% of gamblers are Thai nationals.
Key Poipet operations include Grand Diamond City, owned by Watthana Asavahem, a former 11-term MP from Samut Prakan known as the "Paknam Godfather."
- Photo: The Nation/ANN
He purchased the business in 2001 for approximately 700 million baht and attempted to sell it in 2021 for 12 billion baht. Watthana currently faces a 10-year prison sentence for land fraud.
Holiday Poipet represents a joint venture between Indonesian, Macau Chinese, and Thai businessmen, whilst Star Vegas & Club involves oil tycoons partnering with Taiwanese investors and the brother of a former Cambodian defence minister.
The Shadow Shareholding System
The research reveals a sophisticated "nominee shareholding" system where influential Cambodians leverage land ownership to secure stakes in casino operations.
Former Khmer Rouge leader Samphor, who became Pailin province's governor, exemplifies this pattern by opening his territory to Thai investors whilst demanding partnership stakes in multiple casinos including Pailin, Crown Diamond, Dream World, and K.R. Victoria casinos.
These arrangements require casino operators to pay overlapping concession fees to both central and local governments, creating multiple layers of profit-sharing amongst political elites.
Cross-Border Corruption Networks
The investigation exposes systematic corruption involving officials on both sides of the border. Casino operators must pay bribes to facilitate border crossing schedules, passport processing, contraband inspections, and cross-border money transfers.
Crucially, the casinos serve as money-laundering centres for Thai elite engaged in illegal businesses, with conspiracies between money launderers and casino owners who often become VIP clients.
The research identifies "Kok An," a wealthy Cambodian businessman and Hun Sen adviser, who was involved in constructing the Princess Crown casino in Poipet.
The project violated border agreements, prompting Thai protests and forcing construction to halt with excavated canal soil returned.
Border Restrictions Hit Casino Profits
The current border restrictions directly impact casino operations, particularly at the Aranyaprathet-Poipet crossing, now operating 08:00-16:00 with explicit prohibition: "Thai nationals travelling for gambling and tourism are forbidden to leave the country."
These measures may represent attempts to control gambling and cross-border crime, but they also highlight the complex relationships between state power, business interests, and influence networks spanning both nations.
The International Web
The casino network involves multiple international players including "Tony," an Indonesian businessman owning Holiday Palace and Holiday Poipet; Chen Lip Keong, a Malaysian tycoon controlling Naga World through NagaCorp; Macau Chinese businessmen with stakes in multiple casinos; and Taiwanese investment groups in Star Vegas.
Thai involvement includes "Sia Somboon," former Star Vegas and Star King owner, Cosmo Oil businessmen holding Star Vegas shares, and local Sa Kaeo entrepreneurs with stakes across multiple operations.
Questions for the Future
The current Thai-Cambodia dispute has inadvertently exposed what researchers describe as a "colossal profit network" generating billions of baht whilst connecting influential figures across both countries.
As border tensions continue, the sustainability of these cross-border gambling empires faces unprecedented scrutiny.
The key question remains: how long will the current dispute last, and what will be its ultimate impact on the multi-billion baht casino networks that have operated in the shadows of Thai-Cambodia relations for decades? - The Nation/ANN
[* This investigation is based on research by the Centre for Gambling Problem Studies examining economic and political elite networks and the impact of border casinos along the Thai-Cambodia frontier.]
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