Gambling in China

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Advertising for China's state-run Welfare Lottery outside a convenience store in Shanghai. China Welfare Lottery sign outside a convenience store in Shanghai.JPG
Advertising for China's state-run Welfare Lottery outside a convenience store in Shanghai.

Gambling in China is illegal under Chinese law [1] and has been officially outlawed since the Communist Party took power in 1949. [2] Any form of gambling by Chinese citizens, including online-gambling, gambling overseas, opening casinos overseas to attract citizens of China as primary customers, is considered illegal. [3] In practice however, Chinese citizens participate in state-run lotteries, regularly travel to legal gambling centers overseas or in the special administrative regions of Hong Kong and Macau and access gaming through offshore based proxy betting and online gambling companies.

Contents

Mainland China

Gambling is generally illegal in China. [4] : 101 

The state-run lotteries are permitted, [4] : 101  and The Welfare Lottery and the Sports Lottery set up in 1987 and 1994 respectively. The Chinese government does not legally consider the lotteries a form of gambling. [5] Illegal gambling in China remains common, including unofficial lotteries, clandestine casinos, and betting in games such as mahjong and various card games. In 2010, The Daily Telegraph (UK) reported that an estimated one trillion yuan are wagered in illegal gambling every year in China. Problem gambling exists in the country, and may be more prevalent than in countries with legalized gambling. [1] Online gambling is another outlet for illegal gambling in the country. [5]

Various attempts have been made to establish legal casinos in mainland China, although these have been unsuccessful.

In June 2018, the Chinese Government banned all online poker applications. App stores had to remove all poker related applications, and the promotion of poker in general via all social media channels in China (Wechat, Weibo) became forbidden. [6]

As authorities intensify efforts to curb such activities, gambling in secluded locations, and mobile gambling setups designed to evade police detection, are increasingly prevalent, particularly in rural regions of provinces like Yunnan, Shanxi, and Anhui. [7]

Macau

Macau is the only place in China where casino gambling is legal. [8] : 5 

Gambling in Macau has been legal since the 1850s, when it was a Portuguese colony. The region has a history of gambling on traditional Chinese games. Gambling in Macau now primarily takes place in Western-style casinos; in 2007, Macau overtook the Las Vegas Strip in gaming revenues. As of 2016, [9] 38 casinos operate in Macau, and the region's annual gambling revenues exceed US$27.9 billion. [10]

Hong Kong

While some aspects of mainland Chinese law apply in Hong Kong, certain forms of gambling are legal and regulated in Hong Kong. The Law of Hong Kong is based on English common law, having been a British territory until 1997. Gambling in Hong Kong has been regulated since 1977. [11] The Hong Kong Jockey Club organizes much of the legal betting in the region.

Offshore gambling

The domestic Chinese demand for gambling is significant. [4] : 101  Legal restrictions on onshore gambling in Mainland China have contributed to the growth of overseas and online gambling sites that cater to Chinese nationals. Integrated gaming resorts in Singapore, Australia, Korea, Vietnam and the Philippines welcome growing numbers of Chinese tourists. Mongolia, which is neighbour to China, is also looking into legalizing gambling and casino for Chinese tourists. [12]

Gambling tourism

Several gambling sites previously existed along the China-Laos border and China-Myanmar border to attract Chinese tourists. [4] : 101  In Myanmar, Mongla was site for casinos and other entertainment operations that are illegal in China, as was Boten in Laos. [4] : 101  Following patterns of violence against Chinese tourists, the Chinese government pressured Myanmar and Laos to shut down these sites. [4] : 101–102  As of at least 2024, the trend in both Myanmar and Laos is for casinos seeking to attract Chinese tourists to be set up further away from the Chinese border. [4] : 102 

Proxy betting

As in person visits to offshore gambling venues can be both time consuming and attract the attention of law enforcement, proxy betting has grown in popularity, especially for VIP clients wishing to discretely place high stakes bets. In proxy betting, clients communicate with staffers wearing headsets at baccarat tables in offshore casinos. Proxy betting was outlawed in Macau in 2016 and has never been permitted in Australia or Singapore casinos, but now accounts for 40 percent of the $1 billion VIP gaming market in the Philippines, according to brokerage CICC. [13]

Online gambling

Online gambling in Mainland China remains illegal, however internet traffic routed via VPNs, underground banking networks and payment platforms enable Mainland Chinese customers to access and remit funds to online gaming sites. According to 2019 estimates published in Economic Information Daily, an affiliate of state-owned news agency Xinhua, the annual amount bet through online gambling in the Mainland is more than one trillion yuan (US$145 billion), equivalent to nearly twice the annual income of China’s officially sanctioned lotteries. [14]

In October 2014, The Guardian newspaper reported that one major online site, Bet365 had been taking bets from Chinese citizens by using obscure domain names in order to avoid government web censorship. [15]

In the Philippines, President Rodrigo Duterte in 2016 started the Philippine Offshore Gaming Operations (POGO) program to allow online gambling in major cities. [4] : 102  Under POGO, the state-owned Philippine Amusement and Gaming Corporation issued licenses to be used for service providers to offer online gambling. [4] : 102  Most of the companies which obtained POGO licenses were Chinese, and their businesses primarily catered to the ethnic Chinese community at-large. [4] : 102  Over a three-year period beginning in 2016, at least 100,000 Chinese nationals were estimated to have moved to Manila to work for online gambling operators as marketing agents, tech support specialists and IT engineers to serve Mandarin-speaking clientele. [16] To side step restrictions on direct marketing of online gambling in Mainland Chinese print or social media, many online gaming sites seeking to attract Chinese customers have become shirt sponsors for English Premier League football teams. Dafabet’s sponsorship of Fulham FC and W88’s sponsorship of Wolverhampton Wanderers are just two examples of this trend.

The Chinese government sought to persuade the Philippines to ban online gambling. [4] : 103–104  In the view of the Chinese government, online gaming undermines Chinese financial institutions and creates crime and social problems in China. [4] : 104  The Duterte government did not want to restrain the online gaming industry because of the huge revenues it produced for the state, although after an August 2019 meeting between Duterte and Chinese President Xi Jinping, the Philippines increased its raids on illegal gambling operators. [4] : 104  After the election of presidential election of Ferdinand Marcos Jr., the Philippines took a harsher stance against online gambling, and in September 2022, the Philippines Department of Justice announced that it would shut down more than 100 online gambling operators and deport approximately 40,000 Chinese nationals working in the online gambling sector. [4] : 104 

Before 2020, a significant number of Chinese online gambling operations operated from Cambodia, particularly Sihanoukville. [4] : 105–106  In 2018, Cambodia and China established a joint law enforcement partnership. [4] : 106  In 2019, they opened the National Police's Anti-Technology Crime Division joint operations center in Phnom Penh. [4] : 106  A day after the center's inauguration, more than 100 Chinese were arrested and deported from Cambodia to China to be prosecuted. [4] : 106  Cambodia banned online gambling effective in 2020. [4] : 106  Many of the Chinese gambling operators who left Cambodia after the ban did not return to China. [4] : 107  Instead, many migrated to Karen State, Myanmar, in the Myanmar-Thai border region where they established gambling operations. [4] : 107 

See also

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References

  1. 1 2 Eimer, David (9 January 2010). "China's secret gambling problem". Daily Telegraph . Shenyang. Retrieved 1 May 2015.
  2. ↑ "Rien ne va plus". The Economist. 432 (9158): 25. 31 August 2019.
  3. ↑ "Remarks by Chinese Embassy Spokesperson on Issues of Chinese Citizens concerning Gambling in the Philippines". Embassy of the People’s Republic of China in the Republic of the Philippines. 8 August 2019. Retrieved 9 August 2019.
  4. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Han, Enze (2024). The Ripple Effect: China's Complex Presence in Southeast Asia. New York, NY: Oxford University Press. ISBN   978-0-19-769659-0.
  5. 1 2 Kalenyuk, Mary (7 November 2013). "The bets are on for gambling in China". The World of Chinese . Retrieved 7 April 2014.
  6. ↑ "Crackdown on online poker applications in China - Somuchpoker". somuchpoker.com. Retrieved 2018-06-11.
  7. ↑ He Qitong (2024-02-06). "Zhejiang Police Dismantle Graveyard Gambling Ring, Arrest 19". Sixth Tone .
  8. ↑ Simpson, Tim (2023). Betting on Macau: Casino Capitalism and China's Consumer Revolution. Globalization and community. Minneapolis: University of Minnesota Press. ISBN   978-1-5179-0031-1.
  9. ↑ 2016 Wynn 10-K
  10. ↑ "Macau Gaming Summary". University of Nevada, Las Vegas Center for Gaming Research. Retrieved 7 April 2014.
  11. ↑ Deans, Rob (2001). "Online Gambling: Changes to Hong Kong's Gambling Legislation". Gaming Law Review. 5 (6). Mary Ann Liebert, Inc.: 555–560. doi:10.1089/109218801753336166.
  12. ↑ Adiya, Amar (2023-01-04). "Mongolia Takes a Gamble on Legalizing Casino to Bring in Tourists and Boost Economy". Mongolia Weekly. Retrieved 2023-03-25.
  13. ↑ "China targets PH in offshore gambling crackdown". Manila Bulletin. Bloomberg. 8 August 2019. Retrieved 11 August 2019.
  14. ↑ Master, Farah (9 July 2019). "Chinese state media target Macau's Suncity in online gambling report". Reuters. Retrieved 10 August 2019.
  15. ↑ "Revealed: how Bet365 profits from Chinese punters who risk jail for gambling online". The Guardian. Archived from the original on 31 May 2016. Retrieved 2 June 2016.
  16. ↑ Dancel, Raul (20 July 2019). "Loan Sharks Feed Off Philippine Casino Boom". The Straits Times. Retrieved 7 August 2019.
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