Last month’s Chinese news that the government intended to clamp down on social poker apps with legislation scheduled for June 1 (see previous InfoPowa Reports) has been followed by Chinese media reports that the investigation into the use and promotion via social media of the apps as illegal gambling vehicles is more widespread than at first thought.
It appears that a subsidiary of Ourgame – one of the major developers of the apps and owner of the World Poker Tour brand – was targeted by investigators. Three executives of subsidiary Beijing Lianzhong Company, along with 36 other individuals not employed by the company and probably deployed as gambling agents were arrested in April by investigators from the Ministry of Public Security in collaboration with police in several Chinese cities.
Big money may be involved; the media reports note that the ‘Texas poker’ division at Beijing Lianzhong Company has generated the equivalent of US$ 53 million over the past 8 years through in-game sales, an indicator of how much cash is likely involved in the illegal activity using the apps.
The Chinese authorities have also cracked down on a networking app titled De Friends Circle, which was allegedly being used to recruit players to illegal online games based on social poker app platforms.
In one investigation this involved illegal gambling rings in 7 provinces and 30 cities, and the arrest of an unspecified number of individuals working for an unidentified “Internet company” in Chengdu, Sichuan Province.
The gambling funds involved in the illegal enterprise reportedly exceeded Yuan 1 billion.
In another case, the Ministry of Public Security in Zhejiang moved against illegal gambling operators using the “797” online game platform, resulting in the arrest of 52 suspects and the seizure of Yuan 330 million.
The Ministry has revealed that a number of other major cases remain under investigation.
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