Illicit online scam operations and illegal gambling hubs continue to thrive in eastern Myanmar’s Myawaddy Township, despite highly publicized demolition campaigns by the military junta, residents and analysts say.

Although the junta announced on July 6 that it had demolished 69 buildings used for scam operations in the Shwe Kokko area, residents dismiss the move as political theater orchestrated by the military and its allied Karen Border Guard Force (BGF) to shield their lucrative illicit networks.

"Scam operations are still active at several gates along the border, including Shwe Kokko, Phalu, and Kyaukhtat," a Myawaddy resident told Mon News. "A massive complex known as 'AA' near Ma Htaw Thalay remains fully operational. While the scale is slightly reduced, foreign nationals are still highly visible, and many young Myanmar citizens are still employed to advertise online gambling."

These syndicates, originally established by the BGF and Chinese operators, rely on protection from local armed groups.

While the BGF controls Myawaddy and Shwe Kokko, the Democratic Karen Benevolent Army (DKBA) provides security for scam sites in Minlatpan, Phalu, and Kyaukhtat. Recent clashes between revolutionary forces and the military have also forced operators to relocate deeper into Kyaukhtat and Shan State.

Rather than shutting down, operators are reportedly expanding.

"Large-scale construction is underway on the outskirts of Shwe Kokko, and much of the business is relocating toward Thit Kathi village," the resident added.

A local youth activist noted that the systemic breakdown of the rule of law in post-coup Myanmar has allowed these black markets—which fuel human trafficking and forced labor—to expand unchecked.

Political analysts agree, noting that both the junta and certain armed groups who profit heavily from these multi-billion-dollar operations use staged crackdowns as political cover.