Logo of Phnom Penh Post newspaper Phnom Penh Post - Court orders closure of Poipet’s Star Paradise casino

Court orders closure of Poipet’s Star Paradise casino

Court orders closure of Poipet’s Star Paradise casino

A Poipet casino has been ordered to close after the Australian-listed owner of its next-door competitor filed charges in the Banteay Meanchey Provincial Court alleging breach of contract, documents posted yesterday to the Australian Securities Exchange show.

Donaco International bought Star Vegas in 2015 from a Thai businessman, Somboon Sukcharoenkraisri, who signed noncompetition clauses as part of the sale, according to Donaco’s latest and previous filings. Donaco later began to operate a gaming floor in next-door Star Paradise, which was still owned by Somboon.

When Donaco stopped operating that gaming floor, Somboon kept it going – in breach of the anti-competitive clause, Donaco says. The Banteay Meanchey court issued an interim injunction to close Star Paradise unless Somboon and two associates make a $360 million deposit, Donaco’s filings say.

The headline for a previous version of this article misidentified the casino that is being ordered to close by the Banteay Meanchey Provincial Court. It is in fact Star Paradise, not the neighbouring Star Vegas. The Post apologises for any confusion caused.

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