According to local residents, casinos and gambling halls in Payathonzu, a town in Kyar Inn Seik Kyi Township, Karen State, along the Thailand-Myanmar border, have been shut down since February 8.
The shutdown follows Thailand’s decision to cut off the electricity supply to Payathonzu starting on February 8. The move was due to concerns over online financial scams operating from the area. In response, the Karen National Union (KNU) issued a directive to close all casinos and gambling operations in the town.
A local resident told the Independent Mon News Agency that most of these establishments were located in Ward (1) of Payathonzu but are now completely silent.
“In 2023, casinos, slot machine halls, and fish shooting game centers were operating in different neighborhoods within Payathonzu. Because of the noise and disturbances, KNU relocated them all to Ward (1) and allowed the operations there. The designated area extended from the high school gate to Myo Chit Casino, reaching the Thai border. The area has gone silent since KNU ordered the shutdown on February 8. However, we hear that some gambling activities are still running discreetly in rented apartments and restaurants in town,” said a local.
The Democratic Karen Benevolent Army (DKBA) Brigade 2 issued an announcement on February 9, ordering all Chinese nationals running illegal businesses, including casinos and gambling halls, to leave Payathonzu by February 28. The group warned that failure to comply would result in a strict response.
Despite the shutdown of casinos, locals report no major changes in the town. DKBA Brigade 2 commander, Colonel Saw A Wan, denied allegations of financial scams, stating that only casinos and game halls operate legally in the town.
He also insisted that the Chinese nationals in Payathonzu are either Kokang Chinese or Myanmar-born Chinese.
“The Kokang Chinese living here are fluent in Burmese and have proper identification. They run restaurants, cigarette shops, barbecue stalls, and various businesses. But people perceive us differently because most Chinese in this industry are involved in gambling and similar businesses. However, I can assure you there are no financial scams here,” said Colonel Saw A Wan.
According to locals, Chinese nationals started arriving in Payathonzu in 2023 with the support of DKBA. Currently, the town is home to tens of thousands of Chinese migrants.
While DKBA claims that the Kokang Chinese are merely business representatives, residents say Chinese investors control operations behind the scenes.
The influx of Chinese nationals has driven up rental prices and land lease costs, benefiting some local residents economically.
To crack down on online financial scam syndicates, in early February, the Thai government began cutting off electricity, internet, fuel, and solar panel imports to at least five border areas, including Payathonzu.
