China is cracking down on offshore gambling. This statement came after reports of its nationals working illegally in the Philippines. Also, the Chinese embassy in the Philippines complained about the proposal by the Philippine gaming regulator. PAGCOR wants to confine Chinese gaming operations to specific hubs.
The Chinese Embassy said the plan infringes the basic rights of Chinese citizens. In addition, the Ministry of Public Security of China will take more actions to stop offshore gambling.
Gambling is not allowed in China. Gamblers from the mainland go overseas or Macau to gamble. In recent years, Chinese gamblers gain access to online gambling through gambling call center outsourcing providers.
Offshore Gambling and Casinos
It is unclear whether Beijing will restrict the travel of gamblers overseas. If that is the case, it will hurt the casino resorts in the Philippines. The Philippine Amusements and Gaming Corporation (PAGCOR) wants to confine Philippine offshore gaming operators or POGOs to specific hubs. These areas will be self-contained.
The Chinese Embassy told gambling software providers that Chinese citizens do observe local laws and regulations when they are overseas. Also, Beijing doesn’t allow them to engage in illegal activities.
In fact, Chinese laws allow prosecution of Chinese individuals and companies doing illegal things overseas. The embassy learned that the POGO industry in the Philippines targets Chinese citizens to engage in illegal offshore gambling.
However, it should be noted that most investors of offshore gaming companies in the Philippines are from China. It is Chinese nationals who bring in the illegal workers who enter the country with tourist visas.
There’s a big influx of Chinese nationals in the Philippines due to the growth of the POGO industry. Bookie pay per head analysts expect the stricter regulations from Beijing to benefit both countries. The Philippine government will earn more from tax collections, and China can control illegal activities of their nationals.