The Chinese regime published an article exposing young cadres of gambling during the World Cup. Analysts believe that the authorities weren’t worried about the gambling in itself, but that a lot of money has flowed overseas through the gambling.
The Central Commission Discipline Inspection of China recently published an article, “Don’t Let Gambling Ruin Young Cadres,” which exposed many young officials’ cases. The longest sentence was over three years in prison and a fine of 160,000 yuan (about $22,000).
In one instance, the report claims, the offender owed debts from online gambling totaling nearly 20 million yuan (more than $2.8 million). The pressure caused by the debt, inspred the culprit and his coworkers to issue fake certificates to collect money from real estate agencies.
In addition to a history of online gambling and accepting bribes, some even co-hosted a casino. According to the article, the most common way was to help gambling websites attract players in return for a share of the profits.
In an interview with The Epoch Times – Chinese version, Lu Tianming, an observer of China affairs, believes that the CCP is afraid that huge amounts of money will flow abroad.
Lu said, “Everyone knows that China’s economy is very bad now, and the government’s financial situation is also not good. So these hundreds of billions or trillions in funds flow out, which is not what the authorities want to see.”
Lu commented that gambling is not the only way that money is being drained. It also involves money laundering.
He said, “This is one of the most important reasons why the CCP pays attention to this matter and calls on the public not to gamble. It doesn’t really care about how these officials themselves are but is afraid that funds will flow out of the country, which will accelerate the fall of the regime.”
The CCP has frequently revealed official gambling in the past, where some players bet hundreds of millions of yuan.
For example, in October 2014, Beijing Youth Daily reported that authorities had dealt with 6,000 cases of Party members participating in gambling involving 7,000 people across the country.
A 2003 annual statistics report found a steady increase in China’s gambling-related offenses. In 2002, there was 800 billion yuan ($117 billion) in gambling revenue.
The Chinese Ministry of Public Security estimates that each year, Mark Six, internet gambling, and other underground gambling sites account for approximately 600 billion yuan ($88 billion) in outflows to foreign countries. The amount is 15 times the entire amount of national welfare and sports lotteries issued in 2003.
Since 2014, state media has rarely announced data on the outflow of gambling funds. Lu said, “The public data we can see and find is relatively old, even from 10 years ago. Does it mean that the amount of gambling money flowing overseas has decreased in recent years?”
He clarified that obtaining accurate data on the mainland is hard, and the reality is worse than what is claimed. Once the severity reaches a certain point, they won’t dare disclose it because corruption is involved. On the other hand, they will boast about their political accomplishments if the issue is resolved or takes a good turn.
He gave an example, “If we talk about the trend of 600 billion per year in the past, and then drops to 300 billion or 100 billion a year, the CCP will keep reporting. Failure to report can only mean that the situation is getting serious. That is why when the problem is severe, people can not see the latest data.”
He said, “The betting amount must be very large to become a VIP. So how many of them are from the goverment? Is this the only data he has? The total number of people in Macau casinos, overseas casinos, or online gambling are far more than these.”