China’s Minister of Public Security estimates more than $146 billion were spent by Chinese gamblers using foreign operators. This of course means that the Chinese government is losing out on potential tax revenue and it’s in the country’s best interest to try to clamp down.
That’s already happening. The country is levying heavy fines on gambling operators trying to skirt the law or move money out of China. The idea behind this is that heavy fines will make gambling operators less likely to test the waters.
Being the crypto enthusiast and gambler that you are, you’re probably reading this and wondering, is Bitcoin making it easier for Chinese gamblers to do that? You bet your bottom crypto it is.
China’s Love Affair With Bitcoin and Cryptocurrencies
Since its inception, Chinese investors have been courting and hoarding Bitcoin. It’s a way to keep wealth out of the hands of China’s government bureaucracy and Chinese banks in much the same way that foreign real estate allows Chinese citizens to park their wealth elsewhere. Chainalysis, a bockchain analytics firm, reports that Chinese investors moved over $50 billion in capital through cryptocurrency last year alone.
But just like countries all over the world, China is moving quickly to regulate the use of cryptocurrencies in a way that the world’s biggest, baddest Big Brother would do. The country’s officials clearly aren’t happy with more and more wealth moving to other parts of Asia like Myanmar or the Philippines.
Recent research suggests that’s exactly where all of these gambling proceeds are moving to. A recent crackdown by the country on the U.S. Dollar Tether token is proof of not only what’s happening, but the fact that China doesn’t like it.
So what’s the reason for so much capital being moved out of China using a stablecoin? China’s government only allows citizens to move up to $50,000 a year out of the country. Using real estate in cryptocurrencies is a way to get more capital out of the country and skirt those rules.
It should also make sense that a group of people willing to bet on the risks associated with cryptocurrencies may also send some of that capital to gambling operators in the hopes of increasing their own net worth or at the very least covering their tracks and finding ways to move money around.
Bitcoin Makes Moving Capital Easier
China will always be a juggernaut in the scope of the global economy and by extension, the country is a really important part of the future of crypto adoption and the growth of the gambling market as well.
The bottom line is Bitcoin makes it easier to move capital and so do other cryptocurrencies. Think about it. No oversight from oppressive government regimes. Less of a likelihood of paying fees to third-party payment providers. Better casino promotions. The same technology that supports cryptocurrencies also supports provably fair gaming. Everybody wins when Bitcoin shows up at the casino. But that leaves one question.
What’s Next for Gambling in China?
The reality is as long as Chinese gamblers can move their capital outside of the country, the government can do very little to control it. Gambling operators around the world already have their businesses in places where regulations surrounding wagering are more relaxed, so that’s also taking care of.
Perhaps someday the Chinese government realizes they are missing out on taxable income and allows its citizens to move capital book more freely to nationally owned gambling operators. But that possibility has a lot more to do with politics and human rights issues then were going to discuss here. So for now it looks like Bitcoin gambling is the answer for Chinese gamblers looking to win big at the roulette tables. Particularly if those roulette tables exist outside of China.