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CHINA
China soft power packs punch in online gambling crackdown China’s crackdown on online cross border gambling is showing no signs of easing, with Beijing’s increasing deployment of soft power across Asia reducing safe havens for operators.
Asia Gaming Briefings | August 2021
few months back that said that the local online operators are targeting Korea and Japan markets more as a result.” Vietnam and Thailand are also key target markets, though the main pull has been towards India. Many Philippines Offshore Gambling Operators (POGOs) relocated to Dubai in the United Arab Emirates to focus on the South Asia market due to increasingly onerous costs and
(Credit: Markus Winkler)
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eijing has pledged to intensify its efforts to eliminate online platforms, websites and mobile applications focused on gambling, with a particular mention of live streaming. It mandated that platforms providing paid promotion services and disseminating relevant information be strictly punished. The government is also encouraging citizens to provide tip offs on online gambling sites. According to government figures, the crackdown has been highly effective, with 110,000 suspects arrested last year, more than 3,400 online gambling platforms closed down and more than 2,800 illegal payment platforms shuttered. However, it’s overseas where Beijing’s campaign is starting to have teeth as regional governments, wary of losing Chinese aid and investment bow to China’s demands. “In short, China’s crackdown this time has been rather effective,” said one industry insider, who declined to be named due to the sensitivity of the subject. “Soft power to Asian governments from China is a real concern and significant. It’s a complex subject that probably involves many different levels of business and cultural contexts, but the result for our industry has been a significant shift in enforcement of China’s policies.” Cambodia, which has been one of the top beneficiaries of Chinese investment, was one of the first to heed China’s warnings and announced a total ban on online gambling in 2019, It had previously tolerated a thriving live dealer industry, centered mainly around the casino hub of Sihanoukville. Despite the ban, business is still booming, but the focus has changed. “I hear many local operators and casino owners groaning about the result in Cambodia,” the source said. “That, along with COVID, has had significant impacts on their businesses.” “Absolutely, fewer companies here are targeting the mainland. I heard something interesting a
business conditions in the Philippines. The UAE has traditionally been a U.S. ally, but lately China has been making inroads in its efforts to improve ties, this month agreeing to supply a COVID-19 vaccine developed in China as well as Chinese technology for fifth-generation (5G) wireless technology to the Gulf state. It was an announcement that raised concern in the industry.
