Loophole in anti-gambling laws sees $642 million waged on World Cup in China

By Kimberley Pratt, June 27, 2014

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China may have failed to qualify for the World Cup, but its enthusiasm for the frittering away money on it has not been lost, with more than RMB4 billion (US$642 million) being exchanged in online wagers thanks to Internet giants Alibaba and Tencent, report the WSJ.

The two e-commerce stores have bypassed China’s anti-gambling laws, teaming up with provincial lottery agencies that are commissioned by the central government, simultaneously making World Cup betting a breeze via Smartphones and computers.

As of Sunday, Chinese bets on the World Cup totaled four billion yuan ($642 million), close to double the total 2.3 billion yuan in bets during the tournament in 2010, according to China’s state-run lottery regulator.

Cherry Tao, a 30-year-old public-relations worker from Shanghai, said she had never bet in the official lottery until this year, when she purchased a ticket on Alibaba’s Taobao e-commerce site, which promotes the World Cup lottery on its front page.

Taobao, which operates as an e-commerce platform, links users with authorized sports and lottery gambling centers affiliated with the country’s General Administration of Sport.

“Paying via Taobao’s smartphone application is handy and I feel myself more involved in the game,” said Ms. Tao, who has followed soccer for 16 years. She added, “I definitely wouldn’t go line up at a lottery kiosk,” said Ms. Tao.

World Cup fever has extended well beyond questionable gambling with many fans foregoing sleep and at the expense of their lives. A recent update suggests the World Cup fuelled sleep deprivation death toll is nearing double figures. Meanwhile, a Chinese woman committed suicide after her boyfriend stayed out watching a cup game last week.

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