Border Talks Stalled
Diplomatic efforts to resolve Thailand-Cambodia border tensions remain deadlocked following inconclusive talks on June 14, 2025. Donaco stated, “While both governments have expressed a commitment to resolving the border tensions, bilateral talks held on June 14, 2025, did not ultimately result in a resolution.” The company further noted that despite the surface-level calm, disagreements endured, and Thailand maintains restrictions that continue to disrupt cross-border movement.
The impasse results in operational hurdles for Donaco since Thai policies now severely limit visitor access. Before the June 8 measures, Star Vegas sustained good visitor numbers, averaging 928 daily patrons during Q1. The company now confronts an acute decline in customer traffic and revenue, intensifying financial strain.
Heavy Thai Dependency
The Thai border restrictions have triggered severe economic repercussions in Poipet, Cambodia, where gambling and tourism sectors depend heavily on Thai tourists. Thai nationals constitute about 80% of Poipet’s casino regulars and are now barred from crossing the border. Local businesses are facing unprecedented strain, and Star Vegas, a cornerstone of the region’s gaming industry, exemplifies the crisis.
Donaco now navigates collapsing foot traffic and uncertainty over border negotiations. Management stated its commitment to monitoring developments and issuing updates, but the company maintains a guarded outlook on its FY25 financial performance.
Industry-Wide Repercussions
The Star Vegas crisis has exposed the vulnerability of an operational model dependent on cross-border movement across Southeast Asia’s casino sector. It is highlighted by the Cambodian frontier’s heavy reliance on Thai patrons for capital flow.
This downturn coincides with Thailand’s ongoing debate about legalizing domestic entertainment complexes with casinos, a policy shift meant to redirect gamblers to the local market. However, heavy restrictions intended for the casinos will likely not deter patrons from seeking gambling entertainment in international destinations.
