Hainan ‘Casino’ Shut Down—Again

Illegal gambling is reported to be rife in the popular South China resort of Sanya on Hainan island and authorities are cracking down. More than 16 people have been arrested at the Mangrove Tree Resort World hotel (l.), including individuals connected with a hotel bar that offered casino-style table games that paid players in points redeemable for non-cash prizes.

Authorities on the South China resort island of Hainan have closed an illegal “casino” operating in a bar at the five-star Mangrove Tree Resort World hotel, the second time in less than a year the venue has been shut down for violating the country’s ban on casinos.

Jesters, a bar at the Sanya Bay resort, gained notoriety last February in Reuters report about its “cashless casino,” which offered baccarat and blackjack games at 50 gaming tables that paid out winnings in “points” that could only be redeemed for non-gaming amenities and services at the resort.

The operation was reputed to be one of as many as 10 such establishments operating on Hainan as part of a pilot project intended to one day evolve into a real-money casino hub to rival Macau, currently the only Chinese jurisdiction in which casino gambling is legal. But as news of the games spread, embarrassed local authorities closed it down. Only not for long. In September, the games were reportedly back in action, along with several competitors.

When state broadcaster China Central Television recently aired a report on the casino, which said it had encouraged other operators to open their own underground gambling dens, allegedly with local police protection, officials in Hainan acted. On January 3, five police inspectors were fired, and in an emergency meeting that followed, Mayor Wang Yong ordered Jesters shut—again—and individuals connected with the casino reportedly were detained.

In all, the Sanya government has arrested 16 people this month in connection with five investigations into illegal gambling, according to state news agency Xinhua.