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China to Fight Internet Culture by Stopping Internet Cafes

Every now and then we hear about Chinese authorities raiding yet another online gambling ring. The Chinese government is concerned with its citizens playing at online casinos and invests deeply in stopping such operations. In an effort to stop such activities all together, Chinese officials announced that no more Internet Caf? licenses will be handed this year. Most of the young people that play at online casinos and use other inappropriate online activities –as they are regarded in China- do so at Internet Cafes. By stopping the spread of Internet Cafes and undergoing an industry-wide inspection, China officials hope to put an end to the phenomenon once and for all.

According to the State Administrator for Industry and Commerce, the investigation will focus on whether or not Internet Cafes follow the restrictions of their license. Such venues most register the identities of their customers – making it easier to trace places that allow youth to use forbidden services such as online gambling. While the communist government of China encourages business oriented and educational use of the internet, it does not allow complete freedom when it comes to the private market. Among online casino related material, violent computer games and sexually explicit websites are also forbidden.

China currently has the second largest community of Internet users and will surpass the United States within two years. The American market is semi-closed for online gambling business following the enactment of the Unlawful Internet Gambling Enforcement Act and the Chinese government regard online casino as undesired part of the “Internet Culture”. Just think of the growth potential that the industry has once these markets start to regulate online gambling. Judging by the number of illegal gambling rings that were raided in China, unlike its government – the Chinese public is eager for online casino playing.

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.

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