China Continues Cambodia Casino Crackdown

China Continues Cambodia Casino Crackdown

November 14, 2019 Off By Kristin Simmons

Backstory

Gambling in mainland China is illegal so when Cambodia legalized gambling and introduced casino licenses, doors opened for Chinese nationals. Chinese individuals shifted to Cambodia just to avail and take advantage of the 163 casino licenses introduced. Thousands of Chinese people were reported of immigrating to Sihanoukville, a city in Cambodia.

Sihanoukville did not have any proper regulations pertaining to casinos, anyone and everyone was welcomed. This allowed a lot of gangs and serious rivals into the game. This initiated a lot of violence and criminal activities in the Chinatown region.

Once this process came under the attentions of the Chinese authorities, a Chinese consulate was set up in Sihanoukville. This consulate helped in addressing the issues regarding the immigration process and figured out the main reason behind such movement.

 

What actions did the Chinese authorities take?

The Chinese authorities grew concerned about the mass immigration of their population. Illegal gambling and money laundering became common transactions in casino towns. Chinese nationals would take their money and use it in casinos which would give them a return in the currency of Cambodia. This ensured that no money was being brought back to their own country and were mostly kept in off-shore accounts.

When the Cambodian regulators took notice of such activities, online gambling was turned illegal. All the casinos were supposed to stop operating as that would go against the law. They also teamed up with the Chinese authorities and began busting casinos which were still operational.

The Chinese government, alongside Cambodian authorities, has effectively dealt with the situation. An online gambling ring with wagers of over $4.3 billion was busted by the two authorities. This online ring had a following and customer base of more than a million players. They have also been successful in recovering kidnapping victims which were the result of gang rivalries. These rivalries operated through casinos, most of which have been shut down.

 

Recent Updates

Recent news has come up which explains that over 1000 people have been arrested based on suspicion of playing a part in online gambling. The Chinese government ensures that many more arrests will be made to stop this illegal activity.

Detailed investigations have started to keep a check on telecommunications fraud and gang crimes this year. Around 155 individuals have been arrested due to telecommunication fraud. The Chinese authority has made it clear that it’s not here to play games. It’s taking very serious actions against those who may be linked to online gambling and money laundering.

Individuals that had fled to Cambodia are being forced back to China to avoid the possibility of them committing any further crimes. Serious allegations are being put to anyone who’s found suspicious of online gambling.

The capital outflows faced by the Chinese economy has put them at a disadvantage as this amount is considered irrecoverable. This amount goes high up in billions and does have an impact on the growth of the economy. The Chinese authorities are maximizing their potential in order to overcome this issue of online gambling and money laundering.