LAST WORD 66
Sharon Singleton
Managing Editor, AGB
China puts online gambling in its crosshairs Once again Beijing is flexing its muscles and this time is sending a clear warning signal that online gambling targeting its nationals won’t be tolerated.
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The operators themselves are also well aware of n July, Public Security Minister Zhao Kezhi pledged to resolutely crack down on cross-border gambling, the potential problems they could face if they don’t including those recruiting gamblers from China tread carefully, with master licensor Oriental Game recently announcing that it plans to set up two hubs through overseas casinos. Cited by state news agency Xinhua, he warned to house the ballooning number of Chinese workers that police will crackdown on underground banks and companies. It argues that these centres, one in the north in and payment platforms that facilitate the movement of funds and that he will seek international cooperation Clark City and one in the south in Cavite, will make it easier to oversee and regulate the online gaming to stamp out “such crimes.” He was speaking just days after state media singled companies. As a reward for its efforts and to attempt out Macau’s largest junket operator, Suncity Group, to lure out underground operators, the Philippine accusing it of illegal online gambling and proxy betting. Amusement and Gaming Corp. has said it will grant five-year licenses to those settling The unusual step prompted in the zones, compared with the Suncity CEO Alvin Chau three years available elsewhere. to call a press conference to Whether Philippine efforts to vehemently deny the allegations. Given the tidy up before Beijing gets more He nevertheless apologized to influence China heavy handed are successful the Macau government for any remains to be seen. inconvenience the reports may wields in Cambodia, In some ways you could argue have caused. it wouldn’t have Beijing has been remarkably The Suncity incident and tolerant for some time, prompting Zhao’s comments potentially been hard to the question as to why now? have far-reaching ramifications pressure Phnom Given the influence China for other jurisdictions in Asia, wields in Cambodia, it wouldn’t most notably the Philippines Penh or Manila to have been hard to pressure and Cambodia. turn off the taps Phnom Penh or Manila to turn Although it is strictly illegal years ago. off the taps years ago. to target Mainland clients, it’s Some argue that China clear that gaming companies in knows its people will gamble both countries have been doing come what may and it’s better exactly that for some years now. Both have seen a massive influx of Chinese workers for Beijing to have them do so in countries where it can into the online industry to man their call and service exert control. Prime Minister Hun Sen is a close ally of President Xi Jinping, while since coming to power centres with Mandarin-speaking staff. For some time now the Philippine government Philippine President Rodrigo Duterte has hitched has been seeking to crackdown on Chinese flooding himself to the mast of the regional superpower. That into the country’s online gaming sector without proper hasn’t changed. What has changed is China’s economic growth. visas and without paying the right level of taxes. It’s probably fair to say that some of these efforts stem The trade war with the U.S. has put the brakes on the from a desire from the Philippines to put its own economy, which slumped to a 27-year low in the second house in order before Beijing does it for them, thereby quarter. As it grapples to right the ship, it may have retaining what has become a highly lucrative source become far less tolerant of anything that potentially leeches money out of the country or its citizens. of income for the government.
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Asia Gaming Briefings | August 2019
