Gambling and online casinos in mainland China

Mainland China is one of the world's most closed and highly regulated gambling jurisdictions.

Gambling is completely prohibited here, with the exception of state lotteries.

Unlike Macau and Hong Kong, where legal forms of gambling are allowed, the mainland of the country has a policy of complete control and social responsibility.

Legislative framework and state position

Gambling has been illegal in China since the formation of the People's Republic of China in 1949.

The main document regulating the ban is the PRC Criminal Code, Articles 303-307, which provide for liability for:

organizing or conducting gambling;
participation in gambling with money bets;
use of Internet platforms for gambling;
facilitating, advertising and financing illegal casinos.

Violation of these provisions is punishable:

fines, confiscation of property;
imprisonment of up to 10 years for organizers;
administrative arrests of up to 15 days for players.

Thus, the entire gambling industry in mainland China is completely banned.

Permitted forms of gambling

Despite the general ban, the state allows two legal forms of lotteries run under the full control of the government:

1. China Welfare Lottery (福利彩票网) is a social lottery created in 1987.

The income is used to support education, medicine, nursing homes and the disabled.

The annual turnover is more than ¥200 billion (about $28 billion).

2. China Sports Lottery (体育彩票) is a sports lottery founded in 1994.

The income is directed to the development of sports and physical education.

The annual turnover exceeds ¥250 billion ($35 billion).

These lotteries are the only legal opportunity to experience excitement for Chinese citizens.

Ticket sales are allowed only through official terminals and certified mobile applications overseen by the PRC Ministry of Finance.

Online gambling and blocking

Online gambling is strictly prohibited in China.

The state applies a comprehensive system of control over the Internet and payments, including:

"Great Firewall" - blocks access to online casino, poker and betting sites;
monitoring of bank transactions using keywords related to excitement;
VPN and foreign IP address tracking
closing apps offering "virtual lotteries" or mini-games with cash prizes.

Regulators (Ministry of Public Security, Ministry of Industry and Information Technology, People's Bank of China) actively identify and eliminate illegal platforms.

Illegal market and offshore casinos

Despite the total ban, China's shadow gambling market is huge.

According to analysts, the annual turnover of illegal gambling exceeds $100-150 billion, including:

offshore online casinos (Curaçao, Cambodia, Philippines, Vanuatu);
private "underground clubs" in second- and third-tier cities;
mobile apps disguised as minigames.

Many offshore operators focus specifically on the Chinese audience, offering Chinese-language sites and support via WeChat or Telegram.

To bypass locks, players use:

VPN and proxy;
cryptocurrency (Bitcoin, USDT) for deposit and withdrawal of funds;
affiliated sites and mirrors located in Southeast Asian countries.

However, participation in such games is a crime under Chinese law.

Fighting illegal operations

China conducts large-scale campaigns against illegal gambling, including international operations.

Since 2020, the country has been operating the Clean Internet 2020 + program aimed at combating cybercrime and online casinos.

Results (according to the PRC Ministry of Public Security):

more than 85,000 gambling-related sites have been shut down;
liquidated 1,200 offshore call centers in Cambodia, Myanmar and the Philippines;
over ¥1.5 billion ($210 million) frozen in bank accounts;
more than 80,000 people have been prosecuted.

In 2021, China introduced new amendments to the criminal code, equating the organization of online gambling abroad for Chinese citizens to a serious crime.

Financial and payment restrictions

All Chinese banks and payment systems are required to control gambling-related transfers.

UnionPay, Alipay and WeChat Pay automatically block transactions if the system recognizes them as "gaming" or "gambling."

Also introduced restrictions:

for transfers abroad (no more than $50,000 per year for individuals);
on the use of Chinese cards abroad in casinos (2020 limitation);
for operations in cryptocurrency (ban from 2021).

This makes it impossible for Chinese citizens to legally access international gaming platforms.

Social Policy and Responsible Gaming

The state views gambling as a social threat that undermines family values and financial stability.

The country is conducting an active information campaign against gambling, including:

educational programs in schools;
social advertising about the risks of addiction;
state psychological support hotlines;
encouraging "healthy" forms of leisure - sports, tourism, education.

Economic importance

Although gambling is prohibited in China, the lottery sector remains a large part of the economy:

the total income of state lotteries exceeds ¥450 billion ($63 billion) per year;
the industry employs more than 200,000 people;
part of the proceeds goes to Olympic programs, culture and social security.

Thus, China uses lotteries as a substitute for gambling, maintaining control and receiving stable tax revenues.

Prospects

The PRC government is not considering legalizing casinos or online gambling in the coming years.

The main priorities of the policy are the fight against corruption, the protection of the population and the preservation of social stability.

However, development is expected:

digital state lotteries;
AI control over transactions;
international cooperation to combat offshore sites.

Some experts admit that in the long term, when integrating with the regions of Macau and Hong Kong, China may consider the model of "regulated gambling zones," but not earlier than the 2030s.

Mainland China is one of the strictest markets in the world for gambling.

There is a complete ban on casinos and online gambling, and the only forms allowed are state lotteries.

Despite the huge demand and shadow market, Chinese policy is unchanged: no private gambling, no online casinos, no offshore.

Thus, China remains an example of a state where excitement is completely subordinate to the principles of social stability and state control.