Inside Asian Gaming

signs. It looks like a kids’ game, but it’s still roulette. “Video parlours with these technically ‘legal’ games need two licences—one issued by the local police and one by the Ministry of Culture. The local Public Security Bureau office is responsible for overseeing these operators. “Occasionally, the police will put one of these substitute games on a ‘banned’ list. But then the vendor simply calls the game something else. Also, it’s difficult for the police to supervise every venue all the time. Sometimes in one of these parlours, in a corner or a back room, you will see they may have some other casino-type machines paying cash prizes. Everywhere you go in China you can see recycled slot machines from Russia. And then there are some venues that are totally underground, with illegal casino table games and illegal slot machines.” Officials tend to take a softer line on video or online versions of games that are distinctively Chinese, says the insider. “If it has ‘ mahjong ’ or the words ‘ choh dai di ’ in the title, for example, that’s generally okay because they are perceived as games rooted in Chinese culture that are often played for fun rather than for money,” says the source. “Even in Hong Kong there are choh dai di machines and mahjong machines. There are about 300 arcades with such games in Hong Kong. It’s similar to playing on a home computer, but you can put money in. “Mostly the play on the baccarat-style games in parlours or arcades in China involves paying cash to play against the machine. Most of the venues offer tokens as rewards that can be redeemed for noncash prizes. In some places if the management knows and trusts the player, they may even be willing to exchange the tokens for money. It’s obviously risky for managements, however, as the authorities stamp down pretty hard on that kind of thing when they find out about it,” adds the source. Online Alternatives Getting players is easier than getting their money The danger with having physical gaming inventory in a real location in China is if the authorities take exception to it they may confiscate it and you can lose the family farm. That happened almost literally back in 2001. Hong Kong businessman Cheng Yun Pung reportedly invested the best part of US$100 million setting up a Beijing Jockey Club, stocking it with some of the finest bloodstock money could buy, only to be told eventually by the authorities to turn his horses into pet food. One halfway house solution produced by gaming entrepreneurs in some cities in China is to operate a physical location offering virtual casino-style gaming. “There are places that look like ordinary Internet cafés that actually have an area where people can play casino-type games online for money either on a peer-to-peer basis or against the house. The games against the house will typically use live dealers with the Blooming market—bet on the flowers, not on banker