China Intensifies Crackdown on Cross-Border Gaming

China has intensified the crackdown on cross-border gaming activities, with the Supreme People’s Court (SPC) citing Alvin Chau and Suncity Group as typical cases of such harmful activities. According to the SPC, this high-profile case underlined the substantial capital outflow from China and the grave social and economic consequences of mass cross-border gaming.

Chau Refined the Cross-Border Gaming Model

An announcement on Monday evening by the SPC indicated that offshore casinos and internet gambling syndicates continued targeting Chinese citizens. According to SPC, such criminal activities have led to massive capital outflows from China. The court cited six cross-border gambling cases as examples, with one of these being the Chau cross-border gambling controversy.

Alvin Chau was the former chief of Suncity Group, which ran physical and online gaming establishments in locations like Macau and the Philippines. Suncity Group’s customer base included more than 60 000 Chinese citizens. The SPC commented that this type of cross-border gambling syndicate contributed to the underground outflow of enormous amounts of capital, seriously jeopardizing Chinese society.

Chau was detained by the Judiciary Police of Macau in November 2021, facing charges of illegal gambling and triad-related crimes. He received a sentence of 18 years in prison in January 2023. The former gambling kingpin unsuccessfully attempted to appeal in court. He must also compensate the Macau SAR Government for almost MOP$25 billion ($3.1 billion).

Efforts by China Have Met Substantial Success

Large-scale efforts by China to crack down on cross-border gambling have produced some remarkable results abroad. Monday saw the Philippine President, Ferdinand Marcos, issue a blanket ban on all Philippine Offshore Gaming Operators. These POGOs, historically dominated by Chinese firms, were riddled with unauthorized activities and connections to organized crime.

While the recent developments in the Philippines represent a substantial blow to the offshore gambling industry targeting Chinese nationals, the country must still contend with illegal operators predominantly from Southeast Asia. Authorities remain vigilant against offenders and routinely take measures to crack down on these black market entities, but the offshore sector has proven resilient.

China’s crackdown on cross-border gaming continues to intensify, with the SPC setting a clear precedent through high-profile cases like that of Alvin Chau and Suncity Group. Domestic efforts mixed with international cooperation reiterate China’s commitment to addressing the economic and societal impacts of illegal gambling and may have significant implications for the global gambling industry.