Chinese Fraud Gangs Allegedly Move Trafficking Victims to Rebel-Controlled Casino Amid Crackdown Rumors

Chinese fraud gangs operating in eastern Myanmar’s Kayin state are reportedly relocating foreign trafficking victims from a town on the Thai border to a casino situated in an ethnic rebel-controlled enclave. According to casino workers, this move comes amidst rumors of an impending crackdown by authorities. The victims, coerced into running fraudulent operations, are allegedly being forced to work and make exorbitant ransom payments for their release.

Tens of thousands involved in such criminal schemes were deported from Myanmar in 2023, linked to activities including forced labor, human trafficking, and money laundering. The closure of casinos across Southeast Asia due to COVID-19 exacerbated the proliferation of these illicit activities. Following recent arrests and raids targeting money-laundering gangs along the border with China, speculations arose regarding a possible crackdown by Myanmar’s junta and Thai authorities on casinos along the Thai border.

In response to these potential threats, over 800 Chinese nationals were deported earlier this month from Shwe Kokko, a notorious gambling and scam center in Myawaddy township, Kayin state, in connection with online fraud. Allegedly, Chinese fraud syndicates are now shifting captive foreign workers to the Kyaukkhet Casino, known locally as the Ko Sai Casino, located in a Democratic Karen Benevolent Army-controlled territory. Sources report that the victims, comprising individuals from various countries, including Thailand, China, Vietnam, Malaysia, Cambodia, Laos, Ethiopia, and Uganda, are being held against their will at the casino.

Escape attempts are met with brutal consequences, with captured individuals subjected to severe beatings and torture, including the use of electric tasers. Reports suggest that the perpetrators, primarily Chinese supervisors fluent in Burmese, enforce these punishments. Victims held at the facility have pleaded for intervention, citing fears of further abuse if they fail to generate income for their captors.

Despite being situated in a rebel-controlled area, representatives of the Democratic Karen Benevolent Army claim ignorance regarding the operations of scam gangs within the Kyaukkhet Casino. They assert that while the casino is located in their territory, they are not deeply involved in its activities. The casino owners purportedly maintain autonomy, negotiating with various armed groups for protection and financial arrangements.

Amid ongoing conflicts between Myanmar’s military and rebel forces near Myawaddy, residents confirm the absence of clashes or raids in the vicinity of the Kyaukkhet Casino. Efforts to reach the owners of the casino for comment have been unsuccessful. Authorities continue to investigate the trafficking of foreign nationals and urge anyone with relevant information to come forward.