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China expected to legalize online casinos

While online casinos are the fastest growing business on the Web, with ever-growing popularity and economic success, some countries adamantly oppose this form of gambling. Such is the case with the People’s Republic of China. But even the great wall that China has built around it in order to hold off online casinos might see some cracks in it. It is said that China is reconsidering its laws against online casinos.

A change in the law would require online casinos to receive official and regulated licensing from the government. Some in the industry, such as Tony Tong, CEO of Pacific Net which sells Baccarat machines, believe the choice then would be to establish the online casinos in Macau, where already land-based casinos are operating and the online companies could comfortably fit too.

Such an amendment of its anti online casinos law would grant China enormous sums of money, in the form of taxes. The Chinese government is said to have been taking hefty taxes from the existing gambling industry, close to 40 percent on the house winnings of the Macau casinos. If Tong’s predictions are true, then there will be a lot more tax for the taking and online casinos may help raise the government’s revenue. It seems justified then for the online casino industry to advance its efforts in trying to enter the Asian market.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.