Amidst simmering tensions between Thailand and Cambodia, Thai nationals are now barred from crossing the shared border to work or visit Cambodian casinos. This escalation follows a deadly border skirmish last month, deepening a long-standing conflict over an 820-kilometre land border, parts of which are claimed by both sides.

The conflict intensified following a border skirmish on May 28, which tragically resulted in the death of a Cambodian soldier. Since this incident, both Cambodia and Thailand have engaged in tit-for-tat measures. Thailand reportedly threatened to cut power and internet access to Cambodia, particularly targeting scam centres and illegal casinos. In retaliation, Cambodia banned Thai media and restricted the shipping of fruits and vegetables from Thai purveyors. Effective June 8, both countries implemented restrictions on border-crossing hours.

In the latest measure, effective 8 AM on Tuesday, June 17, 2025, the Royal Thai Army issued an order mandating that all Thai nationals who work at Cambodian casinos must stay home until further notice. As reported by iGaming Times (originally the Bangkok Post), leisure travellers are also now barred from crossing into Cambodia, specifically for “gambling reasons.”

Blow for Cambodia’s Foreigner-Only Casinos

This escalating dispute is directly impacting businesses, particularly foreigner-only casinos in Poipet, a border town often referred to as Cambodia’s “Sin City.” Poipet, situated approximately three hours from Bangkok, hosts eight casinos that heavily rely on cross-border traffic. Up to 90% of patrons at these casinos are typically day trippers from Thailand, with the remaining clientele hailing from China and Western countries.

Donaco International, the operator of Poipet’s Star Vegas Casino, has already reported a significant impact. According to a filing to the Australian Securities Exchange, Donaco has posted a 62% drop in casino traffic and a 42% decline in hotel occupancy since border restrictions were imposed. The company acknowledged that the disruption will affect its revenue in June and promised to “update shareholders as appropriate.” Donaco stated that while the current situation is “relatively calm,” underlying disputes persist, and the Thai government continues to impose measures impacting movements across the border.

Thailand Rejects Third-Party Mediation

The political dimension of the conflict remains contentious. In a Facebook post on Monday, June 16, Cambodian Prime Minister Hun Manet announced that he had formally asked the International Court of Justice in The Hague to mediate the dispute, proclaiming that “Cambodia chooses international law and peace.” However, Thailand’s foreign ministry has rejected this proposal. The Thai ministry stated that “A third party may not always be conducive to the preservation of amicable relations among states,” particularly in sensitive matters involving complex historical, territorial, or political dimensions.

The escalating border conflict and its direct impact on cross-border movement pose a significant challenge for Cambodian casinos that rely heavily on Thai patronage, while also highlighting the diplomatic complexities involved in resolving long-standing territorial disputes.