China Raids Online Casino Gambling Rings
Chinese officials announced today that six online gambling operations had been struck by police, leading to 27 arrests and almost a hundred million dollars confiscated. The head of the Public Security Bureau in Xianning City said the raids were the result of a year-long investigation into gambling by tens of thousands of residents at online casinos.
Police chief Gong Dao'an said the gangs operating the Internet gaming sites had taken in over $7 billion since 2004.
"Most of the gambling funds have flowed to overseas gambling groups through underground money laundering channels," said the police administrator. The money seized represented what was left in domestic bank accounts, but the majority had left the country, according to Gong.
Gong said the gambling operations involved sports betting, horse racing, and card games, and that the gangs running the sites would give credit to players at usurious rates.
Gong called on foreign authorities to help track the money overseas, and added that seven leaders of the gambling operations were also being sought internationally.
Gong said the gaming operators would face prison terms of three to ten years, which he believes is not sufficient to deter potential violators from acting.
