Why legalised gambling is not going to be allowed in Mainland China

There have been widespread whispers about Chinese government allowing legalised gambling in Mainland China, especially after the US states started legalising sports betting. Macau, a Chinese territory, is one of the leading gambling locations in the world – perhaps second only to Las Vegas. Hong Kong, another Chinese-controlled territory, allows legalised gambling.

The gambling tax revenues from Macau and Hong Kong could lure the Chinese government into making gambling mainstream in the whole of China. There have been increasing talks of making gambling legal in another territory, namely Hainan Island.

Gambling is likely to be legalised in Hainan Island, but not in Mainland China. Here is why.

China and Gaming Crackdowns

One of the reasons experts give for gaming not being allowed on the mainland is the massive amounts of money spent on illegal gaming in China. Also troubling to the government are the sheer numbers of people who have been swept up in the ongoing government raids and crackdowns throughout the country.

In 2010, researchers estimated that $146 billion was spent on illegal gaming every year in China. Of that figure, researchers believe that over half of the money spent was on online gaming websites.

The country has been cracking down on the gambling enterprises in China for the last 5 years. The crackdown has been multi-stranded. China has been conducting raids on gambling dens throughout the country, as well as cracking down on the online gaming industry onshore and offshore. Governmental corruption has also been highlighted, and government employees are prohibited from doing business and entertaining potential clients in casinos.

Hainan and Gambling

The Chinese government has tacitly begun the process of allowing gambling on Hainan Island, however experts point out that China’s policy of gambling containment appears to be continuing. For example, the government has restricted gambling to islands or peninsulas in the southern part of the country, as to maintain an air of distinction. Many experts have predicted that Hainan may get approval to get a lottery or a sports betting license. In addition, some legislators propose that the approval of gaming junkets off-island for casino and online gamers by allowing gambling boats to have a base on the island. This would permit gamers to embark the boats, go beyond China’s territorial waters to play online gaming or casino gaming, and then return to Hainan.

Source: USA Online Casino