Asia features a rich gambling history dating back many, many centuries. East Asians have quite a fervor for gambling. In spite of this, East Asian governments are quite strict in banning most forms of it. There is no doubt though that the global trends as of late to legalize gambling are having an impact on many Asian countries. In this article, we will explore the various ways that gambling and betting are regulated in East Asia, the logic behind those systems, and what developments can be expected in the near future.
The legacy of gambling in East Asia
Many years ago, there is evidence of people in China gambling with dice as far back as the Tan Dynasty in 618-907 AD and then developing their own forms of lottery in the Ming Dynasty (1368-1644 AD). Japan too has a decorated past of ancient dice games. All the while, Buddhist tradition teaches moderation and restraint. Confucianism on its part, has emphasized hard work and avoiding indulgence. Yet, in the years after WW2, East Asian nations have experienced an insatiable lust for gambling, as have people in most of the world.
Most nations adhere to the view that it’s best to allow only a few forms of gambling which are the least harmful, first and foremost, to quench people’s appetites. Many of them often see it as a good deal for themselves to allow foreigners to gamble, so that they can contribute economic benefits while local citizens remain protected from its harmful and immoral temptations. Furthermore, the smaller the nation, the more frequently that gambling is allowed, since the net benefit for smaller nations is greater.
Today, players in East Asia enjoy playing:
- Pai gow poker
- Slots
- Pachinko
- Crash games like Football X game
- Baccarat
The persistence of the black market
Like other regions of the world, East Asian governments have had to deal with the reality that the Internet era has ushered in. Technology, anonymity, and the connectivity of the modern world have rendered the job of government enforcement of bans very difficult. The biggest culprits for this are:
- VPNs
- Cryptocurrency
- Messenger apps
- Offshore markets motivated to make a profit
In many cases, offshore online casinos are not prohibited from providing gambling to citizens of Asian countries. Regardless, little to no action is taken against these casinos. It’s also a very common occurrence for people to simply visit other nearby nations like Singapore and the Philippines to gamble.
National gambling laws
Like in other regions of the world, Asian countries sharply disagree as to the best methods of addressing the benefits and the risks that gambling presents. Some are highly permissive and strive for maximum regulation while others try to eradicate most forms of it, preserving only a limited degree of it. Most Asian countries fall under the latter category.
Most tolerant nations
These nations’ governments are fully supportive of gambling and betting.
Philippines
The Philippines is the king of the gambling industry in East Asia. The Manila area and major cities like Cebu are considerable gambling destinations for citizens of other nations, particularly China, and thus the country has a gambling industry projected to reach 3.29 billion dollars for 2025. It regulates both land-based and online gambling, which significantly contributes to its tourism and economy. The Philippine Amusement and Gaming Corporation is in charge of stringently limiting the negative social effects of gambling.
Singapore
This nation takes a fully permissive approach to gambling while employing tight regulation, much like the Philippines. The nation passed the Gambling Control Act in 2022 to consolidate previous laws and modernize regulations. It has two integrated resorts – the Marina Bay Sands and the Resorts World Sentosa, which contribute considerable tax dollars and money from licensing fees. Sports betting is handled by the Singapore Pools state operator, which is also in charge of licensing other online casinos. There are thorough social safeguards put in place.
Mongolia
The government has attempted to create land-based casinos, yet nothing has ever been implemented. Online gambling meanwhile is actually permitted. There is a thriving online gambling industry in the country.
Mixed approaches
These countries take more complex approaches, balancing both extremes.
Vietnam
Even though gambling is for the most part illegal in the country, there are certain casinos that only foreigners are allowed to gamble at. There is also limited sports betting allowed for locals.
Japan
As of late, the nation has taken small steps for greater liberalization.
Traditionally pachinko has been legal, a Japanese game constituting something between slot machines and pinball. The goal is to navigate the balls through a maze of pins into specific pockets, triggering a bonus round. Players win more balls which can be exchanged for tokens which in turn can be traded for cash nearby at separate establishments.
More recently, Japan has introduced integrated resorts designed to attract foreign tourists, in line with the approach of many countries worldwide, including Asia. Only a few sports can be bet on in Japan – like certain football leagues, horseracing, powerboat racing, and a few others.
South Korea
Most forms of sports betting, like in Japan, are illegal while a select few are legal. There are 16 casinos in the country where gambling is legal. As for online gambling – it is outlawed.
Taiwan
There is no gambling here. Though approvals were issued to build casinos on some of the nation’s islands, they were never initiated.
Thailand
Gambling is for the most part illegal here, including online gambling. Despite this, there have recently been debates as to whether it should be legalized.
Cambodia
As of the 1996 Law on the Suppression of Gambling, games of chance are illegal for locals. However, in licensed casinos, especially in border towns and tourist areas like Sihanoukville, gambling is permitted under the Law on Commercial Gambling Management. Online gambling is illegal and frequently cracked down on.
China
The Red Dragon takes a similar philosophy to its Asian neighbors. It views gambling as a negative phenomenon and tries in all sorts of ways to limit it, permitting only a small number of sports that can be bet on, including horse racing. However, it wishes to cash in on foreigners’ expenditures, so it legalized casinos online in the district of Macau.
Dubbed the “Las Vegas of East Asia,” this district has a whopping 41 casinos and its lights are every bit as flashy as its Western counterpart. In fact, Macau focuses on big stakes rather than just casual players. Gambling was initially legalized here in the 1850s by Portugal when it was one of its colonies.
A Changing Attitude in Beijing?
Even the governments in this region which are staunchly against gambling have somewhat liberalized in recent years just like the rest of the world, similar to UAE, Germany, and almost the whole of Latin America. Beijing has gone between a strict stance and a softened stance repeatedly in the last several years with respect to its top two gaming producers NetEase and Tencent Holdings. The government has declared that it wants to emphasize fair practices rather than attempts to manipulate methods of gauging additional profits.