Another Illegal Gambling Den Raided in China

A group of high rollers in China was arrested by local authorities for running illegal poker den in an apartment in Shanghai.

Police investigation showed that more than $8m (50 million yuan) was wagered at poker parties in a single month. During the investigation, the police were tracking the movements of players through social media channels. It is believed that the man who advertised poker events through sites Momo and We Chat is the leader of the operation.

The man of the surname Xu, the leader of the operation, and six patrons were also providing catering services, insurance services and loans. The police tracked poker events adverts and found an apartment near Lujiazui, which is known as Shanghai financial district.

Police raided the apartment where the group of high rollers hosted poker events. They later revealed that most of the customers were young professionals that enjoyed poker.

The group has admitted that they have organized twenty gambling events last month and players staked more than $8m. Eight people were arrested and they are now waiting for the trial on charges of running illegal gambling operations.

It is clear that the underground games are illegal because gambling in China is officially forbidden under Chinese law, except state-run lotteries. However Draconian Chinese gambling laws didn't eliminate gambling itself. In 2010 Telegraph reported that an estimated one trillion yuan ( £900 million) are wagered in illegal gambling every year in China.

In April 2015 thirty four Chinese housewives were busted by the police because they were operating illegal gambling den in Zheijang province. Shanghaiist.com reported that seven women were detained and 27 received administrative penalties.

It’s not unusual that Chinese operate illegal gambling dens due to the strict China’s gambling laws. Online gambling in China is also strictly forbidden and the country doesn't grant licenses to operate online gambling sites. Players are not supposed to gamble on overseas sites either.

Three weeks ago Chinese authorities raided the APPT Nanjing Millions event and police announced that event was suspended due to the allegations of illegal gambling. The raid of APPT Nanjing Millions was certainly unpleasant experience for players and organizers but those who are familiar with the situation of live gambling in China weren't shocked.

Macau, only place in China where gambling is legal, has also faced numerous problems due to the government restrictions. Macau has faced drastic fall in casino revenues in February, when gambling revenue fell for 49%. It seems that government wants to diversify its economy beyond gambling so operators in Macau are now required to provide non-gaming amenities in their resorts.

Even though China has strict gambling laws, gambling will always be popular in China, mostly because it’s part of their culture and crucial part of life in China.