The Thai government recently sent a strong signal that if Cambodia continues provocative actions in the disputed border area, Thailand will employ "cutting off water, electricity, and internet" as countermeasures. This move has suddenly escalated the situation at the Thai-Cambodian border, directly impacting the local grey economy, especially the casino industry, affecting a network of interests worth hundreds of billions of Thai baht.
The incident that sparked this was a border friction on June 8 in the Chong Fu area of Ubon Province. Following the incident, Thailand demanded that the Cambodian military withdraw their positions before 2024, using "supply cuts" as a means of pressure. Under pressure, Cambodia compromised and adjusted its deployment, temporarily easing the situation.
Despite the local cooling down, Thailand has not let go, continuing to make formal protests through diplomatic channels, shortening the opening hours of some ports, and attempting to suppress Cambodian border development through economic means. Cambodia, on the other hand, is seeking international support through the media, planning to submit the dispute to the International Court; Thailand insists on handling it through the "Joint Boundary Commission mechanism," taking a firm stance.
Thailand had already tried cutting off water and electricity in places like Poipet at the beginning of 2025, causing scam dens to become paralyzed. This "triple cut" is seen as a precise strike against the cross-border casino network, forcing Cambodia to start rectifications and crack down on illegal activities, with significant effects.
According to related reports, Cambodia currently has 150 casinos, with over eighty percent of gamblers coming from Thailand, with Poipet and Koh Kong being the main hubs. The structure behind this is complex, belonging to four major forces: one is the Thai political group, such as former official Watanabe; two is the Cambodian military-political family, such as Lee Yongfa and relatives of former defense ministers; three is foreign capital groups, including Indonesian, Macau, and Taiwanese funds; four is local tycoons, operating the grey economy.
Lee Yongfa, as a typical representative, has long controlled land and casino resources, with close ties to the Cambodian political scene. He controls a vast casino network on Koh Kong Island, with deeply intertwined interests. This time, Thailand's "triple cut" policy directly targets his lifeline, increasing pressure on Cambodia.
Regional experts point out that if the situation continues to tense up or even militarize, not only will the investment environment deteriorate, but foreign investor confidence will also be severely damaged. Currently, border transportation is not smooth, and the sudden decrease in tourists has already shown a chain effect.
This diplomatic storm reveals not only border governance issues but also a huge underground economy dependent on the grey industry. Thai measures are both to protect sovereignty and a strike against illegal capital chains. How Thailand and Cambodia will resolve this dual dilemma of diplomacy and industry awaits further consultation by the Joint Boundary Commission.
