Authorities in Cambodia have shut down 91 casinos accused of supporting online fraud networks, just days after China demanded tougher action on cross-border gambling.
According to reports from the Xinhua News Agency, Phnom Penh has also raided 250 online scam centres in the past nine months and deported over 13,000 foreign nationals linked to online scam operations.
Wang Yi, China’s Foreign Minister, visited the Cambodian Prime Minister last Wednesday (22 April), and urged him and his government to take stronger action against cross-border gambling and online fraud – describing them as an issue of public safety.
Cambodia has repeatedly reaffirmed its commitment to addressing scam compounds located in the country; a strategy solidified after the passing of its first cybercrime law dedicated to targeting the perpetrators of online scams.
Although it is not yet known which casinos have been shut down, the closure of 91 properties forms part of a wider effort made by the Cambodian government to tackle illicit gambling – a mission that has become increasingly important following recent acquisitions that casinos across the country had been linked to ‘grave abuses’ related to scam compounds.
However, the fact that accusations are continuing to be made over the presence of scam centres in Cambodia demonstrates that this will be a long-term battle for Phnom Penh as it looks to find new ways to reduce illegal gambling.
Action taken by Cambodian officials seeks to reverse the trajectory and thwart the momentum of scam centres, which surged following the prohibition of online gambling licenses in 2019.
Since then, the footprint of many operators has remained, and the proliferation of scam centres has proven a plague on the country’s economy.
Despite the efforts of the government, Cambodia remains an alluring proposition, given that there are flaws in the country’s regulatory framework and its proximity to Mainland China and Vietnam.
Government action in tackling the issue is something that is essential, but enforcement in many ways is playing catch-up, having given the centres many years to get ahead of the curve.
Yi’s visit forms part of a wider effort by China to drum up support across Southeast Asia to form regional cooperation against transnational cybercrime. He also met with top-ranking officials from Myanmar and Thailand as part of his tour of the region.
According to Xinhua, U Tin Maung, Myanmar’s Minister for Foreign Affairs, emphasised the country’s commitment to intensifying its crackdown on online gambling and telecom fraud.
He also said that Myanmar would ‘never allow any activities that harm China’s interests’ within its borders.
A key factor fuelling the efforts of China in ensuring that Cambodia and other countries in Southeast Asia aren’t hotspots for gambling and casino-related crime is that it has become increasingly apparent that Chinese nationals are often at the forefront of criminal enterprises in the country.
In recent months, China and Cambodia have collaborated in the arrest and extradition of Chen Zhi, highlighting a clear strategic alignment in the two countries.
Furthermore, China’s focus on ensuring a level of integrity in Southeast Asia gambling also fuels the ability of Macau to continue to thrive as the region’s gambling capital.
Just last year, President Xi made a somewhat abrupt intervention in the progress of Thailand’s ultimately unsuccessful land-based casino bill, warning of the potential impact of regulated gambling on crime in the area – a move which many believed was to mitigate the threat to the status of Macau.
