Myanmar Outlines Major Crackdown On Illegal Gambling Zones in Myawady : PMPMedia.io

By Arijit Roul - 1 Dec, 2025 More about the author

The government says KNU-linked projects enabled foreign-run casinos and online scam hubs. Myanmar released a statement describing illegal gambling and online fraud operations in Myawady Township. The government claims KNU leaders directly leased state land to foreign actors and protected casino operators. The Ministry of Information reports these activities grew after armed groups exploited weak security conditions in the region. The statement identifies Shwe Kokko development from 2017 as the starting point of unauthorised large-scale construction.

The Myanmar Investment Commission approved only 25.5 acres for residential buildings, but developers built beyond the permitted areas. Major gambling projects like Chongkhaed Garden Resort and KK Park never received official approval submissions. KNU-associated entities partnered with foreign companies to run physical and online casinos, according to the government. Large numbers of foreign nationals came from Sihanoukville and other gambling hubs to these operations.

Rising Concerns Over Myawady’s Casino Expansion

Residents worried that Myawady was transforming into another Sihanoukville with rapid casino growth. Criminal activity and resident exploitation accompanied the casino expansion in their community. Kayin State experienced increased clashes, and Asian Highway security deteriorated before government action. Military operations began in 2025 to control Kyondoe, Kawkareik, Thingan Nyinaung and border areas. These operations disrupted armed groups’ revenue from online gambling and protection fees, according to officials.

Illegal buildings face progressive clearing with large complexes levelled to prevent gambling re-establishment. Myanmar strictly prohibits online scams and gambling nationwide, according to government reaffirmation. Coordinated efforts with neighbouring countries will continue until operations face complete dismantlement.