Play2Live (P2L) is the first blockchain-based streaming platform for gaming and eSports. Following a successful ICO, it is now embarking on a marketing campaign and is considering its options for expansion into Asia.
In earlier parts of this 4-part series on Play2Live in Asia, we considered major trends in gaming and eSports in Asia, as well as attitudes and regulations to gaming and the use of cryptocurrencies. This article will look at approaches to gambling in Asian countries.
This is important to Play2Live, as it has incorporated a betting component into its platform.
Overview of gambling in Asia
Gambling, both legal and illegal, is said to be a $2 trillion industry. Asia accounts for a large portion of it.
As for traditional sports, gaming and eSports attract a gambling audience. Online or remote gambling is becoming the preferred method. According to Statista, bets on eSports are likely to grow from $315 million in 2015 to $23.5 billion in 2020.
Gambling in Asia is widespread. Some say that this is because of cultural beliefs in luck, fate and fortune. It is also quite complicated, and is illegal or highly restricted in many countries. Where it is legal, this is mostly in casinos, many of them in so-called integrated resorts.
However, gambling is very prevalent, with gamblers increasingly turning to online gambling and international websites. The challenge for such sites is to provide a local language interface and to provide an easy mechanism for placing money. The challenge for governments in the region seems to be to find a way to deal with cross-border online sports betting that they are unable to regulate or tax.
Gambling profiles of 12 Asian countries
The regulatory environment keeps changing, but the following seems to be the status regarding online betting at the moment in 12 Asian countries.
- China
China allows betting only on approved sites and the Chinese Sports Lottery has the monopoly on all sports betting. Online gambling is mostly illegal. However, Chinese gamblers do use internationally licensed online sites. Many gamblers travel to Macau (part of China but with its own political system) where all forms of gambling are allowed. There is a push to have eSports included in Macau casinos to boost their regional competitiveness and to attract a younger generation of consumers. Esports tournaments have already been run in Macau locations.
Despite all the attempts to control it, China is believed to be the single largest sports betting nation in the world, most of it illegal and unregulated. The danger of this is that games themselves are open to corruption, match-fixing and the like.
South Korea
South Korea allows some state-controlled betting and casinos for tourists, but it is a crime to gamble in the country and even in casinos outside of the borders. It is illegal to set up an online casino inside the country, but Koreans can place bets on regional and international sites that fall outside of the South Korean jurisdiction. One outcome of this is that South Koreans are setting up external betting websites in countries like Thailand. There has been some relaxation of the very strict laws, notably with a government-backed SportsToto betting service for sports, albeit on land-based machines in shops.Japan
Japan has strict controls for gambling. Online betting for a lottery, football and public sports is allowed, but only through official channels. International gambling sites are generally preferred by Japanese gamblers and are not actively blocked by authorities. New legislation is expected within the next year to control gambling addiction and to introduce integrated resorts with casinos.Singapore
Singapore has a strong gambling culture, stretching back to gambling farms in the 19th century. Today, gambling is legalized but highly regulated and strictly monitored and there are strong concerns about gambling addiction. According to a report from the National Council on Problem Gambling, 52% of Singaporeans had participated in some form of gambling during 2017. Only about 1% of them were found to be problem gamblers. In 2016, online gambling was legalized, with the Singapore Turf Club and the Singapore Pools being the licensed companies. The rationale for legalizing online gambling was to prevent it from going underground and therefore making it impossible to monitor.Taiwan
Taiwan has the Taiwan Sports Lottery as the only source for legal sports betting. Taiwanese, however, use online sites for other forms of betting and for better odds. International and regional sites, particularly those that support the local language are preferred. Such sites are not actively blocked by authorities.Thailand
Thailand has multiple laws to govern gambling, but online gambling on websites that are licensed and legal in their own countries generally do not attract much attention from authorities.Indonesia
Indonesia has a 90% Muslim population, so religious laws prohibit gambling. Despite this, sports betting and table games are very popular among Indonesians. They are not stopped from accessing either international or local websites.India
India is showing a sharp increase in online gambling, but the laws have been vague and confusing. There are also different laws in different states. For example, in Sikkim, licenses will be issued to operators providing online gambling services within the state. This includes sports betting. In the state of Maharashtra, online gambling has been completely prohibited.
Gamblers playing on foreign sites do not seem to be actively prosecuted, although there are attempts by the government to block sites, and credit card payments often don’t work. The Foreign Exchange Management Act looks to control foreign exchange. This means that payments to online gaming sites should be made in Rupees. Generally, however, gamblers find other means such as electronic wallets for such payments. Sports betting is particularly popular, especially cricket and horse racing.
Hong Kong
Hong Kong allows gambling on horse racing, football and the lottery that are managed by the government-sponsored Hong Kong Jockey Club. Betting on Mahjong is also allowed. Other forms of betting are illegal. Offshore betting and bookmaking are now criminal offenses. It is an offense to even promote or advertise these activities to Hong Kong residents. Online gambling is a bit of a grey area in Hong Kong. While it is illegal to operate an online casino in Hong Kong, foreign-based online casinos have proliferated and the Hong Kong government has not tried to stop people playing on these websites.Philippines
The Philippines as far back as the 1970’s legalized gambling. The Philippine Amusement and Gaming Corporation (PAGCOR) and Cagayan Freeport were established as the authorized gambling operators in the country. Subsequently, two others have been registered. All of them can run their own gambling operations and they can give a stamp of approval or licenses to other sites and operators.
There is a strong drive from PAGCOR to host Philippine offshore gaming operators (POGOs) and to benefit from the fees from these. The Philippines has, therefore, become a popular place for operators in other Asian countries to register their sites. During 2017 fees amounted to 3.9 billion pesos ($73 million) and this is expected to double in 2018.
At the same time, there has been a crackdown on online gambling from within the country. During 2016 all online gambling was stopped, and internet cafes and sports books had their licenses revoked. This has softened slightly, but stringent measures are in place. A recent Executive Order has tightened regulations against anyone working outside of the officially approved channels. It has also specifically prohibited licensed operators within the Philippines from allowing online betting from outside of the country. Filipinos may not bet from home but must place bets at an e-Games station.
New legislation has been proposed which will introduce a new regulatory body and combine licensing for online with bricks and mortar gambling.
The Philippines has been a tourist mecca for gambling, strongly supported by the government. It may be that the crackdown on internal online gambling is a way to protect this industry.
Vietnam
In Vietnam, only the state lottery was legal until limited sports betting was recently added for football, horse racing and greyhound racing. During 2018 a trial may be introduced to allow casino gambling for economically-qualified locals. There are strict penalties for online gambling.Malaysia
In Malaysia, all Muslims are prohibited from gambling by their religious laws. This means 60% of the population. For others, online gambling is possible on international websites, mostly based in the Philippines or the UK.
Play2Live in Asia — considering approaches to gambling
It may be quite difficult for Play2Live to assess how to approach the issue of gambling in Asia. It is faced with the dilemma of trying to operate an open and transparent streaming business, which includes the facility for betting, in an environment where betting is either prohibited or where legislation is being blatantly ignored by gamblers.
Play2Live might follow the example of Unikrn, a US-based online blockchain-driven betting platform for eSports competitions. In both the USA and in Asia, Unikrn is collaborating with legal casinos, making use of their systems to monitor and control who gambles on their site.
It can probably also rely on the fact that most countries have not legislated specifically against online gambling on international sites, or at least have not blocked them.
Because the Play2Live site is blockchain-based, all transactions are transparent and there is less risk of illegal activities and cheating. It is possible to maintain proper profiles of players and pick up suspicious betting patterns. Play2Live may have to lobby authorities in some of these Asian countries, based on the potential benefits of its system.
It seems clear from our 4-part analysis that the Asian market is very attractive for any business in the gaming and eSports environment. However, the market is also highly fragmented. It would seem that Play2Live should actively pursue establishing a presence in Asia, taking note of the differences across countries and being very deliberate about its areas of focus.