Myanmar’s military has stepped up its crackdown on major online fraud networks operating near the country’s borders, reporting a significant raid on the infamous Shwe Kokko complex close to Thailand, with the operation reportedly leading to nearly 350 arrests and the seizure of thousands of mobile devices.
Major Crackdown on Illegal Gambling Leads to Hundreds of Arrests in Myanmar
Shwe Kokko is among several sprawling criminal zones found in Myanmar’s conflict-hit borderlands. These areas have grown into large-scale scamming hubs, where workers run scams, business fraud schemes, and gambling-related cons. It is believed that these activities generate tens of billions of dollars annually across East and Southeast Asia.
Experts note that these operations depend on a mix of willing recruits and trafficked workers from across the region, exploiting the weak governance in territories controlled by various armed groups and militias. For years, Myanmar’s military regime was accused of letting these centres flourish under the protection of allied militias, but mounting pressure from China has altered that dynamic.
China, whose citizens are heavily represented among both the victims and the perpetrators, has pushed strongly for a crackdown. Recently, for example, Chinese authorities pushed for the extradition of She Zhijiang to China. He is a key figure in transnational crime who has been accused of operating more than 200 online gambling scams, mainly in Shwe Kokko.
Combating Illegal Gambling in Myanmar Continues to Be Difficult
A recent UN assessment estimated that victims in the two regions lost as much as $37 billion in 2023, adding that the true global figure is likely much higher. This staggering financial impact underscores a key contrast in Southeast Asia’s gambling landscape: the persistence of entrenched illegal operations alongside a growing push toward regulated online gambling systems.
Myanmar’s military authorities have placed blame on armed opposition groups for facilitating scam hubs, claiming the junta was only able to intervene once it had reasserted control over certain areas. Since February, the military has promoted a broad crackdown, one that some analysts say is aimed at easing diplomatic tensions with China while stopping short of dismantling profitable networks that benefit allied militias. Some regional observers argue that these moves are carefully orchestrated to appear responsive to China’s demands while maintaining a delicate balance between political imperatives and economic incentives.
Regardless, multiple countries are now considering regulatory frameworks for legalization, but real progress depends on decisive action against the illegal networks that have operated unchecked for years.