Analysis: Is it illegal for Chinese nationals to gamble overseas, and how might China’s warning hurt regional casinos?

SINGAPORE: The cards are stacked against China in deterring its citizens from gambling abroad even as fresh pressure is exerted through regional warnings, primarily because there is no clear legislation punishing Chinese nationals for placing bets overseas, legal experts say.

The notice by three Chinese embassies in Asia that embassies and consulates may not be able to provide consular protection for violations is also problematic, as it goes against regulations which recently came into force, according to a legal academic CNA spoke to.

“This threat to withhold consular protection is probably a violation of Chinese law itself,” said Chinese law professor Bing Ling at the University of Sydney.

But the warning will likely still be a general deterrent in the near term as Chinese punters look to lie low amid heightened scrutiny, analysts believe. The drawing of attention towards a years-old online government platform for Chinese nationals to report their compatriots for gambling by passing on clues and suspected activity could also spook gamblers.

Chinese nationals staying off the gambling floors could potentially have a material impact on casinos in the region, industry watchers told CNA.

“Put it this way — (Chinese nationals) are the single biggest market segment for most casinos in Asia. It constitutes a very large proportion of their gaming revenue, particularly their VIP gaming revenue,” said Mr Ben Lee, managing partner of Macao-based casino consultancy IGamiX.

The issue gained international attention on Monday (Mar 18) following statements issued by the Chinese embassy in Singapore, reminding Chinese nationals to stay away from gambling in the Republic. Singapore is home to two casinos.

The embassy asserted that