Organized crime and illegal gambling: How do illegal gambling enterprises respond to the challenges posed by their illegality in China?

Abstract

Since China initiated its economic reforms in 1978, illegal gambling has become the primary source of revenue for organized crime groups. However, there remains a startling paucity of literature on the subject. This paper provides the first scholarly account in English of Chinese illegal gambling organizations and examines how three major types of enterprising entities (local gambling dens, trans-regional gambling rings and online gambling networks) mitigate external uncertainties. Using Chinese- and English-language sources, it explores how gambling organizations develop strategies to achieve optimal efficiency in the face of substantial challenges, including finance, marketing, debt collection, and police suppression.