China, formally known as the People’s Republic of China (PRC), is a country of superlatives. To start with, it is the most populous nation in the world, having over 1.4 billion inhabitants as of 2021. It is the third biggest country on the planet and the largest one in Asia, with a total area of 9.7 million sq. kilometers. China has also become an economic powerhouse over the past decade and ranks second after the United States with a nominal gross domestic product of $16.8 trillion in 2021.
The main drivers of the country’s economic growth are the agriculture, manufacturing, technology, and service sectors. All these factors are a solid foundation for a thriving gambling industry, so perhaps you will find it surprising that nearly all forms of gambling are strictly prohibited in mainland China.
The only exceptions are the government-run Sports Lottery and Welfare Lottery that offer several types of sports bets and number games. Chinese law does not legally define these forms of betting as gambling.
Operating online gaming sites or playing at them is also illegal in China. Despite the general ban, gambling remains widespread among locals. Some participate in the above-mentioned state lotteries, while many others play illegally online, travel overseas, or visit the Macau administrative region where landbased gambling is largely legal.
Gambling Advertising Restrictions in China
Article 9 (8) of China’s Law on Advertising expressly prohibits the marketing of gambling services and products. Only the two government-run lotteries can market their products but on condition they fulfill the requirements outlined in the Regulations on Lottery Management. Article 18 of the regulations explicitly prohibits lottery sales agencies and distributors from misleadingly advertising themselves. .
The prohibition extends to the sale of lottery tickets to minors, i.e. Chinese nationals under the legal participation age of 18. The law disallows lottery sales on credit. Since gambling is illegal in almost all of its forms and playing on credit is prohibited, gambling debts in China are not enforceable as there is no legal recourse of collecting them.
Gambling in the Administrative Region of Macau
Gambling may be illegal in mainland China, but the same does not apply to Macau, a special administrative region (SAR). It has autonomy in some matters and gambling is one of them. Dubbed the Las Vegas of Asia and the Monte Carlo of the Orient, Macau has a rich gambling history that dates back to the days when it was a Portuguese colony. It implements a policy known as “one country, two cities”.
This means Macau has a separate legal system but the Central People’s Government has the responsibility of enforcing foreign affairs and military defense laws. Various forms of landbased gambling are legal in this administrative region, including lotteries, sports betting, bingo, horse race betting, poker, and casino gaming.
The main piece of legislation that governs the casino sector in Macau SAR is the Macau Gaming Law (Law №16/2001). The Gaming Inspection and Coordination Bureau (DICJ) regulates the local gambling industry. The licensing framework is based on concessions between the administrative region’s government and the concessionaires.
Concession contracts have a validity of twenty years. At the time of publication, there are three concessionaires and no licenses will be available until the previous ones expire in June 2022. No regulations or licensing procedures for online gambling are in place for the time being.
Gambling in the Administrative Region of Hong Kong
Formerly a British colony, Hong Kong is another special administrative region that has legal gambling but mostly in landbased venues. Several gambling forms are legal with authorization. The local industry is regulated under the provisions of the Gambling Ordinance of 1977. The main purpose of this legislation is to limit excessive betting while still providing legal options to the population.
The Hong Kong Jockey Club (est. 1884) has a monopoly on lotteries, football, and horse race wagering. In fact, horse races are so popular in the administrative region that it generates the highest horse race betting turnover in the world. Most forms of online gambling are still illegal in Hong Kong SAR.
The only exceptions are sports and horse race wagering, provided by the Jockey Club. Only the organizers and operators of illicit online gaming are subject to detention and subsequently, prosecution. Locals who gamble on offshore websites rarely, if ever, face legal consequences.
Conclusion
As you can see, the Chinese government is very strict when it comes to gambling. The Chinese Communist Party considers such activities harmful to society and goes to extreme lengths to uproot them. The only legal options for Chinese gamblers are restricted to the two government-run lotteries.
Despite the general prohibition, gambling remains prevalent among the population. Mainlanders get their fix by playing at offshore websites or by traveling abroad to gamble at landbased casinos in neighboring countries. Given the scope of illegal gambling activities in the country, the government is unlikely to change its tough stance in the near future.