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While it's easy to assume that China's gambling laws are extremely strict, you might be surprised to learn that some forms of gambling are perfectly legal. Many people understand China to be heavily regulated, even censored, in many ways and for the most part, gambling regulation in the country is no exception. So, what is and isn't legal in terms of gambling in China? Read our analysis below to find out.

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China's gambling laws are very clear: almost every form of gambling in the country is illegal. This extends to online gambling and even to activities carried out by Chinese citizens outside the country. However, there are still a few activities generally classed as gambling that are permitted in China. To help clarify China's stance on gambling, let's look at each gambling activity in turn.

Casino Games

Land-based and online casinos are strictly prohibited by law in China. That includes any venue hosting online casino slots, table games, live dealer games, poker, bingo, keno and betting on lottery outcomes.

The Chinese government goes to great lengths to prevent operators from setting up in the country and offshore operators from accepting bets from those residents of China. There have even been cases of individuals being arrested for participating in online gambling.

Macau presents an exception to the overarching illegality of gambling in China. In Macau's special administrative region, gambling and land-based casinos have been legal since the 1850s. The region is the highest-grossing casino gambling location, far exceeding Las Vegas, with 38 casinos operating in Macau. Interestingly, in Macau, online gambling is not licensed, although many offshore online casinos accept residents of the region.

Poker

Real money poker is illegal in China, as it is a form of gambling, regardless of whether it's offline or online. Many players get around this by joining offshore operators and playing Bitcoin poker, which means their transactions can't be tracked. The game can be found in the many land-based casinos in Macau, however, where it is perfectly legal. Residents of Macau can also access poker games via offshore online casinos.

Bingo

Bingo games are not very common in China. There are no bingo halls in the country, but occasional bingo games occur occasionally with no legal intervention, suggesting that social games are permitted.

Online bingo is strictly prohibited in China, with offshore online gambling sites offering the game actively blocked and unavailable to Chinese citizens. It is also an offence for residents of China to play real money bingo games online.

Lotteries

Lottery games represent the only legal form of gambling in China, as the Chinese government doesn't recognize lotteries as gambling. However, there are some fairly broad restrictions. Real money lottery games are restricted to the two lotteries in the country, the Welfare Lottery and the Sports Lottery, the latter of which could be classed as sports betting. No other lotteries are permitted.

Online lottery games for real money are illegal in China. The only exception is the two state-run lotteries, for which Chinese residents can buy tickets online via the official government-approved websites.

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Some social games are permitted in China. For example, it is legal to play games of chess or poker on a social basis as long as no money is involved. In 2018, all poker apps in China were banned. TPokerapps could no longer feature on China-facing marketplaces such as Google Play and App Store. Even advertising of poker apps on social media sites was banned in the country.

Mahjong is well-known as one of China's oldest social games, but even betting on this cultural activity is banned. Even playing Mahjong games without money is restricted to certain times of the year.

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Sports betting is legal in China, but only via the country's sports lottery. China's Sports Lottery allows people to place bets on the outcomes of various world sports, with football being the most popular. Interestingly, betting on Chinese football games is not permitted due to claims of widespread match-fixing and corruption.

Besides the Sports Lottery, all other forms of sports betting in China are illegal. However, betting on sports is legal in Macau and has been since 1998. In Hong Kong, betting on horse racing events is legal, but only through the Hong Kong Jockey Club.

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Legal gambling is permitted in China and Hong Kong by anyone aged 18 or over. In Macau, you must be 21 or over to take part in the legal forms of gambling there.

Tax Regulation

China's gambling tax regulation dictates that legal gambling proceeds are subject to a 20% income tax. Any income or winnings from other forms of gambling are deemed illegal and usually confiscated.

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Ironically, China has a very long history of gambling, with many of today's most popular gambling activities originating there. Gambling in China can be traced back to some 4,000 years ago, around the time of the first dynasty. It wasn't until 1949, when the Communist Party of China came to power, that gambling was officially deemed illegal.

Certain gambling activities in Hong Kong have been legal for many years due to the region's status as a British colony until 1997. Much of Hong Kong's laws surrounding gambling stem from English law, with horse racing betting regulated since 1977.

Macau was a Portuguese colony, with many of the special administrative region's laws stemming from the European country. As such, gambling in Macau has been legal since the 1850s. Casino gaming is so popular in Macau that the region's revenues from the industry overtook those of Las Vegas in 2007, making it the world's number one land-based casino gambling location.

Key Facts

The main point about online gambling laws in China is that the activity is generally considered illegal, with few exceptions. The two state-run lotteries, the Welfare Lottery and the Sports Lottery are the only legal forms of gambling in China. Two special administrative regions of China have slightly different gambling laws. Horse racing is permitted in Hong Kong, while land-based casino gaming and sports betting are banned in Macau.