Casinos and gambling in China, Macau and Hong Kong

China has a special place in the global gambling industry.

The main part of the country (mainland China) maintains a strict ban on any form of gambling, while the autonomous region of Macau has become the world capital of casinos, and Hong Kong allows only strictly regulated rates and lotteries.

This division makes the Chinese model unique: tight control within the country and the largest legal market in the world - in its special administrative zone.

Legislation and general structure

In mainland China, gambling is illegal.

The main normative act is the Criminal Code of the PRC, articles 303-307, which provide for criminal liability for organizing and participating in gambling.

Only allowed:

state lotteries (China Welfare Lottery and China Sports Lottery);
entertaining mini-games without cash bets.

All forms of online gambling, including poker, roulette, sports betting and casinos, are considered illegal.

Sites, mobile applications and international platforms that accept players from China are blocked.

Nevertheless, the demand for gambling is huge: according to analysts, China's shadow online gambling market exceeds $100 billion a year.

Macau is the capital of world gambling

Macau is a special administrative zone (SAR) of the PRC, which has its own system of laws and economic structure.

Gambling has been legalized here since the 1850s, and after 2002 the sector experienced rapid growth, becoming the largest in the world in terms of income, overtaking even Las Vegas.

Legislation

The main document is Law No. 16/2001 "Gaming Law," updated in 2022.

It regulates:

licensing casino operators;
tax rates;
control over gambling establishments;
player protection and anti-money laundering.

Macau only allows offline gambling - online casinos are officially banned.

However, some operators offer hybrid solutions (for example, live casino and remote terminals) under the control of a local regulator.

Major casino operators

Since 2022, there are 6 licensed operators in Macau:

1. SJM Holdings (Casino Lisboa, Grand Lisboa)

2. Wynn Macau (Wynn Palace)

3. Sands China (The Venetian Macao, The Parisian)

4. MGM China Holdings (MGM Cotai)

5. Galaxy Entertainment Group (Galaxy Macau, Broadway)

6. Melco Resorts & Entertainment (City of Dreams, Studio City)

These companies operate more than 30 large casinos with tens of thousands of employees.

Economic indicators

According to the Macau government (2024):

total gambling revenue exceeded $22 billion;
the sector provides about 70% of the region's tax revenue;
more than 80,000 people are employed in the industry;
more than 25 million tourists visit Macau annually.

Taxation

Macau applies one of the highest rates in the world:

35% of GGR (Gross Gaming Revenue) - basic tax;
+ 2-3% of additional fees (for tourism and social development).
Thus, the total tax burden on casinos reaches 38-40% of income.

Responsible play

The regulator - Gaming Inspection and Coordination Bureau (DICJ) - strictly controls the activities of operators.

Protection measures include:

age limit (21 +);
restrictions on visiting Macau citizens;
mandatory Responsible Gaming programs;
system for monitoring all game operations.

Hong Kong - highly regulated betting and lotteries

Hong Kong, like Macau, is a special administrative zone of China, but adheres to a much more limited gambling model.

Legislation

The main document is Gambling Ordinance (Cap. 148), adopted back in 1977 and repeatedly updated.

It prohibits all forms of private gambling except:

sports betting (horse racing and football);
National Lottery Mark Six;
poker and bingo with no cash prizes.

All legal games are organized exclusively through The Hong Kong Jockey Club (HKJC), a state-owned non-profit organization that has existed since 1884.

Features of regulation

HKJC has the exclusive right to arrange betting;

online betting is only allowed through the club's official website;

offshore bookmakers and casinos are blocked;

participation in illegal gambling is punishable by a fine of up to HK $5 million and a prison term of up to 7 years.

Economic role

HKJC annual turnover exceeds HK $300 billion;

tax revenue from rates accounts for about 8% of Hong Kong's budget;

profits go to charitable and social programs.

Thus, Hong Kong demonstrates a tightly regulated but successful model of legal gambling, focused on control and public benefit.

Online gambling in China

In mainland China, online gambling is completely prohibited by law.

The government is actively blocking:

foreign casino websites;
mobile betting apps;
payment gateways related to gambling.

To circumvent the ban, players use VPN and cryptocurrency, and offshore operators (mainly with licenses from Curacao and the Philippines) continue to accept Chinese users.

However, participation in such games is criminal for both players and organizers.

Payment methods

Macau and Hong Kong use legal payment systems:

UnionPay, Visa, MasterCard;
Alipay, WeChat Pay - with restrictions on gambling operations;
bank transfers and cash;
cryptocurrencies - not officially permitted, but used outside the jurisdiction.

In mainland China, all payment transactions related to gambling are automatically blocked.

Fighting illegal gambling

The Chinese government is waging a systematic campaign against illegal gambling, including:

cyber police tracking online casinos and VPNs;
international cooperation with the Philippines and Cambodia;
blocking domains and payment systems;
criminal prosecution of players and intermediaries.

More than 80,000 people have been prosecuted for their involvement in illegal gambling schemes since 2021.

Prospects

Macau plans to develop non-gaming tourism and digital technologies in casinos, including VR lounges and intelligent monitoring systems;

Hong Kong to focus on online betting and ESG funding models;

mainland China is not considering legalizing online gambling in the coming years, but is expanding state lotteries.

The Chinese gambling model is an example of tight control with limited legalization zones.

Macau remains the world leader in offline gambling, Hong Kong demonstrates a regulated and socially oriented betting system, and the mainland retains a complete ban.

This combination makes China unique: a country where excitement is officially banned, but its autonomous regions form the most profitable gambling market on the planet.