The Chinese government’s crackdown on cross-border iGaming has apparently proven effective, with more pitches from Cambodian online operators being diverted to customers in Thailand, Vietnam and India as well as Japan and Korea.
Asia Gaming Brief cited a statement from Beijing in which the government promised to intensify its efforts to eliminate online platforms, websites and mobile applications focused on gambling, particularly live streaming. It reaffirmed that such platforms will be strictly punished, and has asked citizens to be the government’s eyes and ears and report illegal offshore providers.
By the numbers, the crackdown appears to have proven effective. According to government figures, 110,000 suspects were arrested last year, more than 3,400 online gambling platforms were closed and more than 2,800 illegal payment platforms were shut down.
“In short, China’s crackdown this time has been rather effective,” an “industry insider” told AGB. “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.”
Compliance is especially important for countries that rely on Chinese investment, such as Cambodia. The country announced a total ban on online gambling in 2019, but business goes on, mainly in the casino hub of Sihanoukville.
The source said Cambodian operators are “groaning about the result. Along with Covid, [the crackdown] has had significant impacts on their businesses. Absolutely, fewer companies here are targeting the mainland. I heard something interesting a few months back that said that the local online operators are targeting Korea and Japan markets more as a result.”
Concurrently, a number of Philippines Offshore Gambling Operators (POGOs) have relocated to Dubai in the United Arab Emirates in order to focus on the South Asian market due to increasing costs and business conditions in the Philippines. Myanmar was another center of online gambling companies targeting Chinese players, investing billions to create smart cities in what AGB characterized as “lawless border areas.”
Beijing has urged expats or Chinese travelers involved in cross-border crimes, such as gambling, money laundering and internet fraud to come home and fess up. To enforce its policies, China uses its Social Credit System to bring pressure to bear on citizens overseas. A bad score can lead to penalties like flight bans and exclusions from work or private schools. Those sanctions can affect family members residing in China.
