China’s potential gambling market would surpass the rest of the world

The potential of this latter sector alone would dwarf most of the rest of the world. Broadband internet users total 513 million, doubling the number of the US.

The country also has 140,000 internet cafes and bars with a total of 14 million computers which each log an average of 11 hours continuous use each day with the majority of revenue from this business coming from internet gaming.

Explaining the figures, Peter Pang is a lawyer with Dickinson Wright in Washington, US. He is a long-time specialist on internet gambling and the land-based industry in Asia.

Pang says that although gambling is illegal in China (except for Macau), in 2010 around us$ 15 billion in illegal gambling took place, half of it by internet or mobile devices. “This speaks volumes about the future of legal and regulated online gambling in China, as the demand is there and the potential for a successful launch is every online operator’s dream.”

But he warns that regulation will not happen immediately. However, political changes are on their way and early in 2013 there may be some relaxation in gambling laws, possibly seeing more lotteries, gaming for tokens, betting on horse racing and bingo.

Regulation, says Pang, will inevitably come and those into the market first will be best placed to benefit. Accordingly, many of the leading global gaming providers are already establishing a presence there, some seeking partners for joint venture lottery operations.