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Suncity Group CEO Alvin Chau has been detained by Macao police after Chinese authorities issued an arrest warrant over accusations that he and others ran an illegal cross-border gambling syndicate. Photo: AP
Opinion
Editorial
by SCMP Editorial
Editorial
by SCMP Editorial

Online gambling will remain a problem that must be watched

  • Gambling beyond government-sanctioned outlets is banned in China but pandemic restrictions have seen some gamblers turn to illegal online platforms, which can be especially problematic. Authorities must be willing to act on an issue that is not going away

Gambling beyond government-sanctioned outlets is banned in China, whether on the mainland, in Hong Kong or the world’s leading gaming centre, Macau.

The reasons are concerns about underage betting, links to criminal activities and addiction. Covid-19 poses an extra challenge, with lockdowns and restrictions to prevent the spread of the virus forcing the closure of or limitations on venues like casinos, prompting some people to turn to illegal online platforms.

With the Omicron variant threatening to prolong the pandemic, the number of crackdowns and arrests are likely to increase.

Eleven people were recently arrested by Macau police for alleged involvement in overseas online gambling platforms and suspected money-laundering. Among them was Alvin Chau Cheok-wa, the gaming hub’s largest junket operator. He is accused of leading a syndicate that encouraged Chinese to bet on a website set up in the Philippines and lending them wagers and providing clearing services through an underground bank.

The skyline of Macau. Photo: Shutterstock

Chinese laws were changed a year ago making it a crime to “set up or manage casinos overseas” and “organise or solicit” Chinese to go abroad to gamble.

Chinese authorities are trying to create an anti-gambling atmosphere. Records show 255,850 people accused of operating illegal casinos were charged from 2018 to the end of September, 63,298 being prosecuted in the first nine months of this year.

Pandemic travel restrictions have meant Chinese who would usually have gone to Macau and other gambling destinations have been forced to stay at home, making them targets for syndicates offering illegal online gaming.

Casinos going online to bypass China’s anti-gambling laws on authority’s radar

Beijing claims unlawful gamblers destabilise society and the economy, hurt China’s image and are prone to involvement in serious crimes; it estimates 1 trillion yuan (US$157 billion) leaves the country every year because of overseas gambling.

The shift to online platforms is global. The lockdowns and restrictions of regulated land-based venues like casinos, horse racing tracks, bars and clubs with electronic gaming machines and betting shops has caused online alternatives to flourish.

Although gambling is a leisure pursuit for many, it has the potential to harm a minority, their families and communities through addiction. Online gambling can be especially problematic given the relative lack of constraints on when and how it can be accessed and its solitary nature.

Omicron and other variants of the coronavirus, a reluctance by some people to get vaccinated, and low immunisation rates in poorer parts of the world mean the pandemic is not going away any time soon. Online gambling will remain a problem that authorities will have to monitor and, when necessary, take action against.

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