China Punishes Online Casino Players

China stands as a notable exception in the global landscape of gambling regulation. While many nations have moved towards legalising and regulating both land-based and online gambling to enhance player protection and generate revenue, China maintains a stringent prohibition. This strict stance extends not only to gambling operators but also to individual players, with severe penalties for those found in violation. In a significant move to combat illegal activities, the Chinese government has previously offered immunity from punishment to individuals who voluntarily report their involvement or provide information on illicit gambling operations.

This unique approach underscores China's commitment to eradicating gambling within its borders, viewing it as a social ill rather than a potential source of economic benefit. The government's efforts are comprehensive, targeting various facets of the illegal gambling ecosystem, from digital platforms to cross-border travel for gambling purposes.

China's Intensified Crackdown on Cross-Border Gambling

Since 2020, the Chinese government has significantly escalated its efforts against cross-border gambling. This intensified crackdown has led to the identification of approximately 17,000 cross-border incidents and the questioning of over 110,000 individuals as suspects. These figures highlight the sheer scale of the problem and the government's rigorous response.

Authorities have successfully located and shut down an estimated 3,400 illegal gambling websites. Furthermore, the crackdown has extended to the financial infrastructure supporting these operations, with around 2,800 payment service providers also being targeted. The fight against online gambling is not new; as far back as 2018, tech giants like Apple were compelled to remove more than 25,000 gambling-related applications from their Chinese app stores, demonstrating the long-standing pressure on companies to comply with local laws. Companies such as Google and Apple are legally obliged not to offer these apps within China's jurisdiction.

Amnesty Initiatives for Self-Reporting

In a strategic move to dismantle illegal networks, the Chinese government previously announced an amnesty programme, offering immunity from punishment to those who came forward. This initiative, which had a deadline of April 30th in a past year, allowed individuals to report their involvement or provide crucial information via email, telephone, letter, or even verbally.

The offer of exemption from penalties was extended to all players, operators of gambling providers, and employees of companies involved in illegal gambling. The primary objective was clear: to gather intelligence and facilitate the shutdown of as many online casino sites as possible. The state assured protection for those who cooperated, provided they offered clear and actionable evidence to locate the gambling providers in question. This approach was seen as a vital step in winning the battle against illegal gambling and, simultaneously, deterring more people from engaging in such activities.

Beyond online platforms, the government has also taken stricter action against gambling tourism. Wealthy individuals who travel abroad for gambling, often facilitated by junket operators, face severe penalties, including mandatory participation in educational programmes. Penalties are also designed to be proportional to the stakes involved in the players' gambling activities.

The Broader Implications of China's Gambling Ban

Within China, citizens are generally only permitted to participate in the state-run lottery. All other forms of gambling, whether land-based or online, are strictly prohibited. This prohibition also extends to travel abroad specifically for gambling purposes. International casinos are, in principle, not allowed to accept players from China. Should such casinos be identified, they risk facing repercussions from their own national authorities, as exemplified by cases like Crown in Australia, which faced license issues partly due to money laundering allegations involving Chinese high rollers.

This situation creates a strong incentive for international casinos to avoid accepting Chinese nationals. The Chinese government is also actively increasing pressure on neighbouring countries to cooperate in its anti-gambling efforts, believing that a united front is essential for success.

The rationale behind this intensified crackdown, particularly since 2020, stems from alarming statistics. The Ministry of Public Security reported that an estimated 11 million Chinese citizens participate in online gambling, often facilitated by over 9,000 casino mobile apps. In a recent year, authorities seized over R2.4 billion (approximately 120 million Euros) in connection with these illegal operations. Despite previous actions against payment service providers, the problem persists, partly because banned payment service providers often operate disguised as online shopping platforms, making detection challenging. The onset of the global pandemic in 2020 is believed to have exacerbated the issue, prompting the Chinese government to devise these comprehensive and stringent measures.