The Ministry of Public Security of China recently noted an increase in local activity by foreign casinos as well as online gaming sites. These platforms are luring Chinese citizens to gamble with the amidst the coronavirus pandemic.

Ministry brings an issue to light

The ministry conducted a public address last week, describing the foreign gambling operators as entities that “seriously injure the public’s lawful rights and interests and seriously impact health economic and social development.” It noted that people found committing such crimes will be strictly punished. It also encouraged the public to report their suspicion to the authorities. If their reports result in a conviction, they could get major rewards.

The claim that the number of offenses has increased since the coronavirus pandemic outbreak began is surprising. This is because the global gambling industry is going through tough times because of regulatory activity and lack of sporting events to bet on.

Foreign gambling in China

Most of the foreign entities focusing on the Chinese market are based in either Cambodia or the Philippines. However, the Cambodian government succumbed to pressure from the Chinese government, which is its biggest economic influencer and did away with its online gaming sector. The Philippines, however, did not pay much heed to protests from Beijing. It closes the licensed online gaming industry alongside its land-based casinos into lockdown on March 15. This included its main island, Luzon.

Black market operators can still target the Chinese market from anywhere in the world. It is evident that some licensed and regulated entities from Europe also like to woo Chinese customers, even though they prefer not to talk about it. These operators may be interested in getting Chinese traffic in the absence of the Philippines and Cambodia. European operators, especially those in the UK, have been facing regulatory issues in their homeland. China can give them a great opportunity to help their bottom line.

Before all this, the Philippines was supporting brisk trade in proxy betting in the region. Agents located in land-based casino VIP rooms were often placing bets over the phone for their Chinese clients. One of the biggest beneficiaries of the temporary shutdown in Macau was the Tigre de Crystal located in Russia’s Primorsky Krai special economic zone. Suncity, the biggest junket operator in China, acquired a 25% stake in the property last year. It is located right at the north-eastern border of China, resulting in larger traffic too.