Asia-Pacific is facing two simultaneous transformations across its gambling industry. While Japan is experiencing a sharp decline in profitability at one of its largest pachinko operators, Cambodia has become the epicenter of a crackdown on online fraud that is forcing criminal networks to relocate across Southeast Asia.
In Japan, Dynam Japan Holdings, the Hong Kong-listed pachinko operator, reported a 35.1% decline in net profit for the fiscal year ended March 31, 2026. Earnings fell from JPY4.019 billion to JPY2.605 billion, while consolidated revenue declined 2.3% to JPY123.186 billion. Operating profit dropped to JPY9.154 billion, and the company’s core pachinko business generated JPY115.429 billion, down 3% year-on-year. Although gross pay-ins increased to JPY558.368 billion, player payouts rose to JPY442.939 billion, while operating expenses related to asset impairment surged 79.9% to JPY5.227 billion.
The company, led by Chairman, President and CEO Akira Hosaka, maintained an annual dividend of JPY5 per share, highlighting the pressure facing a sector that remains under the supervision of Japan’s National Police Agency (NPA) and the country’s Prefectural Public Safety Commissions.
Cambodia is attempting to redefine its position as a regional gaming hub after years of criticism over scam compounds linked to casinos and illegal online operations. According to Deputy Prime Minister and Minister of Interior Sar Sokha, who briefed Swiss Ambassador Pedro Zwahlen, the country’s nationwide crackdown on online fraud has resulted in the arrest, deportation or voluntary departure of more than 300,000 foreign nationals connected to scam activities.
Prime Minister and Minister of Interior Sar Sokha
The enforcement campaign is already producing regional consequences. In Laos, authorities arrested 106 Thai nationals in Bolikhamxay Province for alleged involvement in online betting and telephone scam operations. In Sri Lanka, law enforcement agencies reported more than 1,000 foreign nationals arrested for cybercrime during 2026, primarily citizens of China, Vietnam and India, with authorities linking the increase to the relocation of criminal organizations from Cambodia and Myanmar.
Swiss Ambassador Pedro Zwahlen
Cambodia’s response includes the adoption of its first dedicated cybercrime legislation aimed at dismantling online fraud operations connected to illegal gambling. The law provides penalties ranging from two to five years in prison and fines of up to US$125,000, while crimes committed by organized groups or targeting multiple victims can result in prison sentences of up to 10 years.
The country continues to enforce the Law on the Management of Commercial Gambling of 2020 under the oversight of the Commercial Gambling Management Commission of Cambodia (CGMC). Although Cambodia collected US$63.1 million in gambling taxes during 2024, the government’s priority has shifted from market expansion to combating transnational fraud, while Japan faces the opposite challenge: preserving profitability in one of Asia’s largest regulated gaming markets.
