Second Las Vegas in Cambodia a massive failure

The Cambodian city of Sihanoukville has invested a lot, i.e., driven the inhabitants out, withdrew access to beaches for the residents, opened the doors to Chinese mafia and forced labour, as well as tolerated fraud on a large scale: all this so that the city will become a gambling metropole – a second Las Vegas. This aim has openly failed. What remains are hundreds of building ruins, high unemployment, and a very questionable security situation.

In many parts of Asia gambling is a different form of spending one’s daily free time. Relevant services are however not legal. There are still special zones in which slot machines, baccarat, roulette and co. maybe played. Such a special area was set up in Sihanoukville in Cambodia.

Chinese investors invested billions in the building of a new Asian games of chance centre over there. The aim was to take the top spot away from the large gambling metropole Las Vegas and also from the local mecca of bounty hunters, namely Macau. The city and the whole country had hoped to attract masses of Chinese games of chance tourists and secure prosperity.

Many buildings were built, and the new skyline actually gives the look of a modern, successful big city. At a closer look however, one will soon realise that around 80 % of the apartments are empty or not even finished.

The Cambodian Las Vegas kicked off in 2010, the “gold rush“ started in 2016 – and that was also the descent

In 2012 Cambodia and China decided to set up a special economic zone in Sihanoukville. As from 2016 big money started flowing in the city. The property prices increased and there was a corresponding gold rush. There was even more increase in the demand of land for building projects and it often happened that this was acquired by dubious means.

The locals recount how the inhabitants were evicted and ousted. They were even refused access to some beaches. Some of them took it to court. However, since the Cambodian judiciary is probe to corruption they were practically not even given a chance. The Chinese investors used their connections to politics, and they managed to carry on without any problems.

Casinos attract criminals – the consequences are uncontrolled gambling, violence and forced labour 

Usually where there is a lot of money circulating and where corruption blooms, you will find criminals. Thus, all kinds of shady figures who were plotting their schemes settled down in Sihanoukville. The Chinese mafia, i.e., triad promised the city and its casinos the best business.

Cambodia occupies the third place of the most corrupted Far Eastern countries – after North Korea and Afghanistan. Politicians blatantly pocketed money and were even part of those committing the crimes. Even the police were heavily involved. Help organisations often advised that in case of problems public officers should be either avoided or bribed.

Supported by these conditions Sihanoukville in Windeseile became a casino city controlled by Chinese criminals (and it still is). The unregulated games of chance sprawled out. One could even make bets in the smallest shops. The large casinos were above all used for money laundering. They were also the point of departure for other even more drastic crimes around blackmail and forced labour. For a time, the escalation of violence surrounding games of chance was not to be stopped.

Finally, under the increasing pressure from the side of the Chinese government the authorities took drastic measures. The Corona pandemic also contributed to this. 

Containment of uncontrollable games of chance 2019 and Corona

The criminal rampant procedures in Sihanoukville were obviously a thorn in the side for Peking. The pressure on the Cambodian government increased so that in 2019 unregulated gambling became illegal. That led to a severe break in the construction boom.

Several casino and hotel projects were stopped. Several tens of thousands of Chinese employees (especially in the construction industry) had to return to their country – even the local employment market suffered enormously. The Corona pandemic halted the construction industry completely. Besides this, no more Chinese were coming to gamble in the city as they were affected by the strict travel ban.

These events were a catastrophe for the businesspeople in Sihanoukville. In China there were strict Corona regulations that lasted till the beginning of 2023. In the future it is highly unlikely that the services will be used again. Many casinos, hotels and other businesses are still closed till today. There are even more than 1000 empty buildings – from small shops to skyscrapers – and high unemployment.

Forced labour and other criminality mean constant large problems in Sihanoukville

The criminality was relatively lowly restricted by the authorities’ measures. Nowadays blackmail and forced labour are the order of the day. Those looking for a job for example are reporting that they became victims of such influences. Most often these originate from the still active casinos.

The scam is easy and callous: those willing to work are baited to work in casinos by being offered attractive job offers. Simple administration work with good pay or traineeships with the prospect of attractive positions including accommodation and meals are especially effective bait.

When they arrive at their “employer” those involved would be locked up, threatened and blackmailed. They take away all their papers and force them to commit all forms of cyber fraud. The crimes vary from supporting illegal online games of chance to manipulated trading in crypto currencies. The forced labourers can buy their way out - the requested sums are however too high for those involved.

Conclusion

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