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China Bans Online Gambling

August 17th, 2010
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Last week, China implemented anti-gambling legislation that prohibits all forms of online gambling. The only exception to the legislation would be the Chinese national lottery; a lottery that is completely controlled by the Chinese government. Not only does this legislation outlaw online gambling, it restricts the marketing or advertising of online gambling within China and it makes it a criminal offense to advertise any online gambling activities from within the country.

While some speculate that this law is just yet another way for the Chinese government to control its citizenry - by censorship and intimidation - Chinese officials are insisting that this new legislation will protect the country's children. The new law also has vague language stating that "online games targeting minors must not violate social morals and the law." Chinese legal experts are stating that such terminology is both broad and open to vast interpretation. What about ads that are not aimed at children, but consenting adults? And who is to say an ad is targeting children as its goal? With China trying harder and harder to be be seen as more open to the West, this has to be seen as a setback for Chinese relations with other countries like the Unites States, Great Britain and other members of the European Union.

China has been courting Western business and customers for a long time now, and the Beijing Olympics in 2008 could be considered the high point in their campaign to win over the West. However, such hard line tactics like the new legislation make China seem like they are reverting to the country that is known for oppressing its populace and the stamping out of basic human rights. Will this latest attack on individual liberty by the Chinese government hurt the progress it has made in relations with the West over the last ten years?

Online gambling in China was estimated to be worth over $3.8 billion in 2009, but the Chinese government has done everything in its power to wipe out this arm of the gambling industry. The Chinese mindset is one that apparently loves to gamble, and it has been both a difficult and perhaps dangerous task for Chinese officials to demand its citizens stop gambling. With the rise of hugely popular offshore live casinos in Taiwan and Macao - places normal citizens of the Republic of China are not allowed to visit - experts are speculating that it is perhaps not wise to also limit or ban the access the average Chinese person has to online gambling. Naturally, this legislation will eventually lead to citizens playing at underground sites, funneling all of that money into private enterprise and leaving the Chinese government out in the cold, unable to collect much needed gambling tax dollars.

The population of China is now over 1.3 billion people, and it is a market every online casino on the web is salivating to get a piece of. However, this legislation is just one more bit of frustration for businesses that want to gain access to a huge population of gamblers, but can't seem to penetrate due to arcane and old-fashioned Chinese law practices. The latest legislation banning online gambling is just one more step in the wrong direction.

Tags: Online Gambling, Online Gambling Legislation

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