Illegal Gambling Crimes In China
I. Legal Framework for Illegal Gambling in China
1. Statutory Basis
Illegal gambling in China is mainly governed by the Criminal Law of the People’s Republic of China (PRC), particularly Articles 303 and 304, along with supplementary interpretations issued by the Supreme People’s Court (SPC) and Supreme People’s Procuratorate (SPP).
Article 303 (Criminal Law):
Organizing gambling for profit, or operating a gambling house, is punishable by up to three years imprisonment, criminal detention, or control, and a fine.
In serious cases (e.g., large-scale operations, cross-border gambling), sentences can reach 3–10 years imprisonment plus fines.
Article 304 (Criminal Law):
Making a living from gambling (professional gambling) or gambling in serious circumstances may also lead to criminal punishment.
Other relevant provisions:
Public Security Administration Punishment Law applies to minor gambling activities (administrative fines or detention).
Cybersecurity and Cybercrime laws apply if gambling occurs via online platforms.
II. Elements of the Crime
To convict for illegal gambling, the prosecution must prove:
Actus Reus (Act): Organization, operation, or participation in gambling for profit.
Mens Rea (Intent): Knowledge and intent to gain profit illegally.
Illegality: The act lacks a government license (as only state lotteries and authorized sports lotteries are legal).
III. Detailed Case Law Examples
Case 1: The “Macau Proxy Betting” Case (Guangdong, 2018)
Facts:
A group of defendants operated a “proxy betting” scheme where clients in mainland China gambled remotely via video streaming connected to casinos in Macau. They recruited mainland clients, collected bets through WeChat, and settled winnings electronically.
Judgment:
The Guangdong Intermediate People’s Court found the defendants guilty of organizing gambling under Article 303. The lead defendant received seven years imprisonment and a fine of RMB 500,000, as the operation involved over RMB 50 million in transactions.
Significance:
This case established that proxy or remote gambling connected to overseas casinos constitutes illegal gambling even if the servers or physical casinos are abroad, as long as the gambling “targeted” Chinese residents.
Case 2: The “Online Lottery Platform” Case (Jiangsu, 2020)
Facts:
A technology company operated an unauthorized online lottery platform mimicking official China Welfare Lottery results. Users bought virtual tickets through Alipay and WeChat Pay. Over 200,000 users participated.
Judgment:
The Nanjing Intermediate Court held that the platform’s operators were organizing and operating gambling. The main defendant was sentenced to five years imprisonment and a fine of RMB 300,000.
All illicit profits were confiscated.
Significance:
The court ruled that online gambling operations disguised as lotteries fall squarely under criminal gambling provisions, clarifying that “lottery” does not exempt a platform from the gambling prohibition unless it is officially sanctioned.
Case 3: “Mahjong Gambling House” Case (Sichuan, 2017)
Facts:
A business owner in Chengdu ran a private mahjong parlor with 20 tables. Players paid table fees, and the house took a percentage of winnings. The operation ran daily and generated consistent profit.
Judgment:
The court ruled that charging table fees and taking commissions turned the activity into profit-oriented gambling. The defendant was sentenced to two years imprisonment, suspended for three years, and fined RMB 50,000.
Significance:
This case distinguished between social gambling (small stakes, private play) — which may only lead to administrative penalties — and commercial, profit-based gambling, which triggers criminal liability.
Case 4: “Cross-Border Online Gambling Network” Case (Fujian, 2021)
Facts:
Defendants established an online gambling website hosted overseas but marketed to mainland users. They developed mobile apps, promoted them through Chinese social media, and used cryptocurrency for settlement.
Judgment:
The Fujian Provincial High Court found them guilty of organizing gambling and providing technical support for illegal activities. The lead defendant received nine years imprisonment and RMB 1 million fine.
Significance:
This case underscored that:
Even offshore servers do not shield defendants from Chinese jurisdiction if the target users are mainland residents.
Crypto-based settlements are considered “financial transactions” within the meaning of gambling laws.
Case 5: “Company Party Gambling” Case (Beijing, 2016)
Facts:
A company held a “team-building” poker event with cash prizes. Participants each contributed RMB 1,000, and the winner received RMB 10,000. Police discovered the event following an anonymous report.
Judgment:
The Haidian District Court determined that although this was a single incident, the monetary stakes and prize system met the criteria for gambling in serious circumstances.
The organizer received six months detention and a RMB 10,000 fine.
Significance:
Even casual or private gambling may constitute a criminal offense if:
The amount of money is significant, or
The organizer profits or collects entry fees.
Case 6: “Internet Café Gambling Game” Case (Zhejiang, 2019)
Facts:
An Internet café installed a gaming software allowing users to win and exchange “virtual coins” for cash. The owner took a 20% commission from every game.
Judgment:
The court held that using computer games as a medium for gambling constituted illegal gambling under Article 303.
The café owner was sentenced to three years imprisonment (suspended) and a RMB 100,000 fine.
Significance:
This case confirmed that electronic or game-based gambling—even with virtual currency—falls under criminal gambling if players can exchange winnings for money or goods of value.
Case 7: “Mobile App Gambling with Ads” Case (Hunan, 2022)
Facts:
Developers created a mobile card game app with paid in-game chips convertible to cash via third-party platforms. They monetized the game through ads and chip purchases.
Judgment:
The court convicted them for operating an online gambling platform. The principal offender received eight years imprisonment and a fine of RMB 600,000.
Significance:
This case highlighted how mobile applications—even if framed as entertainment—can constitute gambling crimes when profit mechanisms and cash-out functions exist.
IV. Summary of Legal Principles Derived from Cases
| Principle | Explanation |
|---|---|
| Profit motive | Gambling becomes criminal when organized for profit (commissions, rake, entry fees). |
| Online and proxy gambling | Cross-border or digital operations targeting Chinese users fall under PRC jurisdiction. |
| Virtual currency | Virtual or crypto tokens convertible to value count as “money or property.” |
| Social vs. Commercial gambling | Social gambling (small, non-profit) = administrative; Commercial gambling = criminal. |
| Organizer liability | Organizers face heavier penalties than participants. |
V. Typical Sentencing Ranges
| Severity | Examples | Punishment Range |
|---|---|---|
| Minor (administrative) | Small private game, no profit motive | Fine ≤ RMB 500, Detention ≤ 15 days |
| Ordinary criminal | Small illegal parlor, few participants | ≤ 3 years imprisonment + fine |
| Serious criminal | Cross-border, online, large sums | 3–10 years imprisonment + heavy fine |
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