中国打击非法博彩如何影响全球博彩市场（英）-14页_1mb

Summary of China's Crackdown on Illegal Betting and Its Impact on Global Betting Markets

Core Content

This report, published by the Asian Racing Federation Council on Anti-illegal Betting & Related Financial Crime in September 2021, analyzes the impact of China's crackdown on illegal betting from 2018 to mid-2021. It highlights how this campaign affects both domestic and international betting markets, particularly in Southeast Asia and beyond.

Main Points

1. Reasons for the Crackdown

• The crackdown on illegal betting in China is primarily driven by concerns over unregulated capital flight, which threatens economic stability and national security.
• Annual illegal betting-related capital outflows are estimated at CNY 1 trillion (USD 154 billion), with illegal betting representing a significant portion of such flows.
• The government aims to curb the associated social harms, including fraud, gambling addiction, and the exploitation of Chinese workers in offshore betting hubs.

2. Scale of Illegal Betting in China

• The illegal betting market is estimated to be at least double the legal market, with an average annual turnover of CNY 453 billion (USD 70 billion).
• Media reports indicate that illegal betting operations can have a turnover of up to CNY 2.3 billion (USD 350 million) per operation.
• Illegal betting is widespread across China, with Guangdong being the most frequently mentioned province in reports.

3. Transnational Impact

• The crackdown has disrupted illegal betting operations in the Philippines, Cambodia, and other Southeast Asian countries.
• Chinese authorities have created a blacklist of jurisdictions that facilitate illegal betting, targeting countries like the Philippines, Cambodia, Vietnam, and Myanmar.
• The new criminal code in December 2020 criminalizes the organization or solicitation of cross-border gambling, with penalties up to 10 years in prison.
• The crackdown has led to transnational arrests, including 590 Chinese suspects arrested abroad in 2020 and 145 Chinese citizens having their passports invalidated in 2021.

4. Adaptation and Innovation in Illegal Betting

• Illegal betting operators have adopted advanced methods to obscure transactions, such as fourth-party payments and cryptocurrencies.
• Fourth-party payments involve intermediaries to avoid detection by third-party payment platforms like Alipay and WeChat Pay.
• Points-running (跑分) is a form of fourth-party payment where individuals act as intermediaries to transfer funds.
• Cryptocurrencies have become a popular method for laundering funds and transferring money across borders, with over 1,100 people arrested in 2021 for cryptocurrency-related money laundering.

5. Impact on Macau Junket Operators

• Macau junket operators, who facilitate illegal betting by enticing Chinese citizens to gamble abroad, have been significantly affected.
• The crackdown, combined with the pandemic, has disrupted the liquidity of junket operations and their clients.
• Some operators, like Suncity, have shifted focus away from China to other jurisdictions, such as Russia, the Philippines, and Vietnam.

6. Relevance and Broader Implications

• China's crackdown is more extensive, sustained, and impactful than previous efforts.
• The operation has led to a reconfiguration of illegal betting activities, pushing them further underground and to other jurisdictions.
• The report emphasizes that betting operators in "grey markets" must be aware that their operations targeting Mainland China may now be considered criminal, regardless of their licensing status elsewhere.

Key Information

• Timeframe: The report covers the period from 2018 to mid-2021.
• Data Sources: Includes 315 Chinese media articles, official government statements, and English-language reports.
• Annual Capital Outflows: Estimated at CNY 1 trillion (USD 154 billion) annually.
• Arrests: Increased from 25,000 in 2019 to 110,000 in 2020.
• Operations Disrupted: Over 3,400 online gambling platforms and 2,800 illegal payment platforms were shut down in 2020.
• Blacklist: Not publicly available, but includes Southeast Asian countries like the Philippines, Cambodia, Vietnam, and Myanmar.
• Criminal Code Amendment: Enacted in December 2020, criminalizing cross-border gambling and increasing penalties.
• Global Shift: Illegal betting operations have moved to new locations such as Malaysia’s Johor, Myanmar’s Yatai City, and Dubai in the UAE.

Conclusion

China's illegal betting crackdown has far-reaching implications for both legal and illegal betting operators across Asia. It has disrupted traditional betting hubs, led to the criminalization of cross-border gambling, and forced operators to adapt by using more sophisticated financial methods. The full extent of the impact remains unclear, but it is evident that the campaign is reshaping the global betting landscape, with operators and jurisdictions needing to respond to the evolving regulatory environment.