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Behind the Joint Crackdown on Online Gambling: Why Cambodia Has Become a Haven for Cross-Border Gambling


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In recent years, a wave of high-profile figures from the grey area of Macau's gaming industry, such as Alvin Chau, Chairman of Suncity Group, and the main controller of Dejinn Group, the leading intermediary of Macau's gaming industry and the husband of actress Angelababy, have been arrested for allegedly operating gambling operations in mainland China and conducting cross-border online gambling. With Macau's gaming intermediaries being put under strict supervision, Cambodia has emerged as a paradise for gamblers.


To attract more patrons, most legal brick-and-mortar casinos have opened online operations, with Phnom Penh and Sihanoukville hosting numerous online gambling hubs. Data shows that the majority of Cambodia's casino clientele come from Thailand, Vietnam, and China, with these three countries accounting for over 50% of visitors. In recent years, as Macau's gaming industry faced tightened official regulations and adjusted its economic structure, emphasizing "diversified development," a securities analysis report indicated that the demand for VIP gambling intermediaries in Macau had overflowed to Southeast Asia, with more and more gamblers seeking experiences beyond those offered by casinos in mainland China and Macau.


Recently, the Chinese media outlet Chang'an Network reported on a major transnational online gambling case uncovered by the police during a special operation, revealing the secrets of online gambling in Cambodia.


What makes the situation delicate is that the case directly implicates Cambodia's well-known conglomerate, Prince Group, attracting high attention from domestic and international media. Prince Group, established by Chen Zhi in 2015, is a household name in Cambodia, with business operations spanning shopping malls, supermarkets, banks, casinos, apartments, taxi software, and restaurants.


Earlier reports also suggested that the Beijing Public Security Bureau's investigations in 2020 were tracing whether Prince Group was involved in cross-border gambling and illegal money laundering. In response to allegations of involvement in cross-border gambling and money laundering, Prince Group publicly denied the accusations, stating that they were the result of criminals impersonating the company.


In 2023, China and Myanmar jointly cracked down on telecom fraud, leading to almost complete eradication of telecom fraud hubs in northern Myanmar. Notably, on September 16, 2023, Xinhua News Agency published the "Joint Communiqué of the Government of the People's Republic of China and the Government of the Kingdom of Cambodia," which mentioned the deepening cooperation and capacity building between the two countries' national and local police forces in the areas of combating cross-border gambling and telecom fraud. Observers pointed out that this marked a new phase in Cambodia's crackdown on cross-border gambling and telecom fraud.


In September 2023, Cambodia's newly appointed Prime Minister, Hun Manet, visited China. During meetings with Chinese leaders, the issue of "combating cross-border crimes such as online gambling and telecom fraud" was raised.


On April 13, 2024, the first batch of 130 Chinese nationals suspected of gambling and fraud-related crimes were extradited from Cambodia by Hubei police. Gao Junyi, Deputy Director of the International Cooperation Bureau of the Ministry of Public Security, reiterated China's zero-tolerance policy towards cross-border gambling and pledged to continue cracking down on cross-border gambling crimes.

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