China Underground > Entertainment > What Investors Should Know About the Differences Between the Chinese and US Gambling Markets

What Investors Should Know About the Differences Between the Chinese and US Gambling Markets

The gambling industry is one of the most lucrative markets in the world, generating billions of dollars in revenue every year. Two of the biggest gambling markets are China and the United States. While both countries offer ample opportunities for investors to profit, there are significant differences between the two markets that investors should be aware of before making any investment decisions.

Gambling in China and the U.S.

As long as no bets are put over state boundaries and there are no state laws barring it, gambling is legal across the United States. The market is rapidly expanding. The three Detroit casinos recorded monthly total revenue of $103.5 million.

Since 1949, all types of gambling have been prohibited in China. Nonetheless, such regulations do include certain specified exceptions.

First, Macau, a Special Administrative Area of China that was ruled by Portugal until 1999, has legalized casino gaming. Just six businesses, including Wynn Resorts, Ltd., Las Vegas Sands Corp., and MGM Resorts International, are authorized to run casinos in Macau.

Similar to state lotteries in the United States, Chinese gamblers can purchase tickets for the government-approved Welfare Lotto from neighborhood stores. Chinese gamblers can wager on international basketball, baseball, and soccer events through the China Sports Lotto. In 2019, these two lotteries collectively brought in $60.1 billion.

The People’s Procuratorate and China’s Supreme Court together issued a decision in 2005 that made it clear that online gambling is unlawful in China. The decision stressed that it is unlawful to charge fees to lure Chinese residents to bet abroad, in addition to the fact that casinos and online gambling are prohibited in mainland China.

Illegal Gambling in China

Online gambling has grown rapidly in the US as a result of the coronavirus epidemic, and there have also been reports of increases in illicit internet gambling in China.

More than 60,000 people have reportedly been detained in China as a result of recent investigations into more than 8,800 incidents of illicit cross-border gambling. According to the Chinese Ministry of Public Security, the raid also covered 1,700 online gambling sites and 1,400 banks that were reportedly associated with $151 billion in unlawful gaming transactions.

According to a report from the news outlet Caixin, major Chinese internet businesses were apparently also affected by the increase in illegal gaming.

Investment Opportunities

Despite the differences between the two markets, both China and the United States offer ample investment opportunities in the gambling industry. Investors can choose to invest in individual companies, such as casino operators and online gambling platforms, or in broader funds that cover the industry as a whole. There are also other options like the new iGaming market in Ontario.

When investing in the Chinese market, it’s important to consider the risks involved due to the heavy government regulation and potential policy changes. However, with the Chinese gambling market expected to continue growing in the coming years, there are still opportunities for savvy investors.

The US market is also attractive to investors, with a diverse range of gambling options and a customer base that continues to grow. Sports betting has become particularly popular in recent years, with more states legalizing the activity and creating opportunities for investors.

Last Updated on 2023/02/28

Post Author

Previous

Jia Zhangke on Jia Zhangke: A Portrait of a Filmmaker

Enjoyed this post? Never miss out on future posts by following us

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.