Thai Authorities Cut Power to Casinos at Myanmar Border
Amidst a bitter dispute with Chinese-owned casinos situated on the Thailand-Myanmar border, Thai authorities cut power to the casinos to force them out. The two small towns have vibrant gambling complexes but are run by bosses who unfortunately have consistently been accused and indeed found guilty of hosting criminals who traffic humans and sell drugs. As a response to having their power cut off by Thai authorities, they have now had to resort to running their casinos and keeping the lights on through backup power generators.
The casinos operating in Thailand have been operating outside the approval of central governments, fuelled by venture capital from China these enterprises are now in the cross-hairs of law enforcement who in their latest action decided to cut power to several large casino venues.
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It’s not the owners of the casino who control the local power authorities, it is the local government. Chinese casino businesses in the region are finding this out in real-time as they are caught up in a shift in attitudes towards liberal gambling laws in Asia.
Shwe Kokko and Lay Kay Kaw have been completely powered by a Thailand state enterprise that exported electricity to the towns. However, since the contract has expired the Myanmar local authorities decided they would not renew it. This is thought to be a response to Chinese casino investors who have been building up their influence in the region.
Despite cutting their power, these casinos are still fully operational and will be able to remain that way for the foreseeable future. They will instead rely on other electricity sources. This midterm hindrance to operations is not unexpected, and the teams running these venues are well prepared to handle these mishaps as and when they occur. In all future planning processes, they will factor in the risk of power supply into business models.
Crime on Thailand-Myanmar Border is Rampant
There is a significant crime epidemicalready flourishing in this part of Asia. The borderlands are hardly under government control, and local authorities exercise very little authority over the way these towns operate. Many armed groups are rivaling for control and political autonomy, crossed into this equation are the criminal gangs who often fight amongst themselves rather than solely against the government. The government allows this to happen in order to keep the militias in check.
These border regions have become almost a lawless plain of criminality and exploitative business practices. Chinese investors flooded the region with cash a short-while ago, and local militia groups maintain control on the ground. Due to this dynamic, the central government authorities are unable to gain a foothold or exercise any authority over the region.
Public broadcaster, Thai PBS, confirmed that two casinos had in fact lost power during the period of disruption. Shwe Kokko was the first to report a power loss, and this appeared to cause a blackout in the venue for a mere 30 seconds before the backup power generators were able to kick-in. The other venue to report similar issues was the infamous KK Park, a business that had been linked with human trafficking and forced labor.
Karen Border Force Negotiating with Government for Restoring Power
The Karen Border Force is effectively a militia that works in the interest of the local business owners to maintain law and order around the casino towns. Following the power outages of the casino towns, the venues have had to rely on unconventional resources to keep the power on. In the interest of restoring normality to this process, the Karen Border Force is said to be negotiating with the local government so that they can enter a new agreement to supply power to these border-cities affected by the recent outages.
Ultimately, this comes down to a struggle for control of a lucrative market, splintered by political misalignment. When they can reconcile over the new power deal, the local authorities expect to be able to regain some form of control over the region. What that means for the future of the casino businesses operating there remains to be seen, more updates to follow.
