Illegal Chinese online gambling network leads to arrests

A Chinese gang’s illegal gambling service was uncovered last month after a three year period of illegal online activity. The online betting network had been operating heavily throughout the course of the 2010 FIFA World Cup despite the fact that the Chinese team failed to quaify for the event. It is thought that the network has generated sums worth over 100 billion yuan ($14.8 billion) throughout the course of its activity – an alarming figure which reflects the difficulty of regulating online services. The network has been processing bets since August 2006.

Gambling is currently illegal in China but players are still able to wager small amounts via state-run lotteries. The Chinese Center for Lottery Studies has revealed that gaming continues to be popular amongst Chinese players with over $87 billion spent by Chinese customers through offshore gambling networks. A recent campaign to crackdown on illegal operations has sought to curb such activity and has led to numerous arrests involving approximately 3,600 people and the confiscation of sums amounting to a total of $102 million. 

It is hoped that the arrest of ‘Dark Brother’, leader of the gang in question, will mark the end of one of the most dangerous of these illegal networks. The ‘Dark Brother’ was seized after leaving a nightclub in Shenzhen and is thought to have a comprehensive network which extends across Southern and Eastern China. Additional overseas contacts were also implicated in the operations. It remains to be seen how the Chinese authorities will continue to tackle the threat posed by illegal gambling networks which continue to grow in scale and sophistication.