According to the Ministry of Information, these activities proliferated as armed groups exploited weakened security conditions in the region. The government highlighted the Shwe Kokko development, launched in 2017, as the origin of large-scale unauthorized construction. While the Myanmar Investment Commission had only approved 25.5 acres for high-standard residential buildings, developers reportedly expanded operations far beyond the permitted boundaries. Other major gambling projects, including Chongkhaed Garden Resort and KK Park, were never submitted for official approval.

The official statement noted that KNU-associated entities partnered with foreign companies to operate both physical and online casinos. These hubs attracted a significant number of foreign nationals, drawing comparisons to Sihanoukville. Local communities had expressed growing concern that Myawady was mirroring Sihanoukville’s trajectory, where rapid casino expansion brought criminal activity and exploitation.

Following an escalation of clashes in Kayin State and deteriorating security along the Asian Highway, the government launched military operations in 2025. These efforts aimed to regain control of Kyondoe, Kawkareik, Thingan Nyinaung, and surrounding border areas. Officials report that these operations successfully disrupted the revenue streams of armed groups profiting from online gambling and protection fees.

From October to late November 2025, authorities repatriated 68,582 foreign nationals from 52 countries found within these illegal compounds. The government is progressively clearing illegal structures, with large complexes being leveled to prevent the re-establishment of gambling operations.

The government reaffirmed that online scams and gambling remain strictly prohibited in Myanmar and emphasized that coordinated efforts with neighboring countries will continue until such operations are fully dismantled.