Fashion
It’s been almost a year since the government decided to ban online poker apps and promotion in China. In the months since the ban took effect, both the live and online industry continued to rumble on in neighboring countries. But did the local Asian market experience any negative or even positive effects from the ban?
Chinese Black Friday
In April of 2018, the Chinese Government shocked the local poker industry by announcing that as of the 1st of June that year, poker would no longer be recognized as a competitive sport. The day the ban was due to take effect was quickly dubbed “Chinese Black Friday,” and Texas Hold ‘em lovers across the nation reeled as they took in the news. But the fact that poker was no longer a competitive sport was the least of their worries.
The government decided to prohibit any poker-related apps for mobile devices or desktops, too. They also went so far as to prohibit all social media channels from mentioning poker in any way whatsoever. In one fell swoop, they had crippled the local poker community that now had no means of connecting to play or even discuss the game.
The local poker industry had been experiencing a period of steady growth to make matters worse. Revenues had increased year-on-year, and in 2017, they were projections to increase by 73 percent per paying customer. Not only would players no longer be able to play, but businesses who had invested heavily in the booming industry stood to lose everything.
What Happened Next
Poker experts the world over predicted a dire situation for the Asian poker market, and while it didn’t quite pan out that way, the industry did feel the effects. Many neighboring countries that would hold live tournaments in their casinos had previously held online qualifying events in China using play money. The ban resulted in a significant drop in the number of Chinese players making the trips abroad to play.
The promotion ban had the most far-reaching effects, though. With Chinese tourists providing a massive boost to many neighboring nations, promoting poker events and casino trips were commonplace. But the ban prevented such marketing tactics, and casinos and gambling destinations were no longer able to promote their services to the biggest tourism market in Asia.
However, all was not lost, especially in Macau. The expectation was that the self-governing region would suffer the most from the ban as much of its tourism business comes from China, with a large portion of that being poker players who have qualified for live events. But surprisingly enough, the tourist numbers increased once the ban took effect.
It seems that the poker ban had little effect on their tourism figures. Perhaps this was due to Chinese poker players now realizing that their only opportunity to play was while on holiday in Macau. Whatever the reason, it’s clear that the negative impact of China’s ban on its neighbors was temporary.
Current Online Poker Business Trends
It’s safe to say that while live events across Asia weren’t affected too badly, the online market was a little different. The biggest negative effects were, of course, felt by the top online providers who had invested heavily in the local online industry. China had the potential to become one of the biggest online poker markets in the world, but unfortunately, that chance has now passed. Local players were no longer able to play in any way, shape or form with the market now closed.
However, the Asian market has continued to grow, although at a slower rate now that China has left the table. Online poker tournaments are still quite popular, with global tournaments often boasting a large percentage of Asian players, hinting at the fact that there is still a hunger for the online version of the game in Asia. This point brings us to India.
In 2017, the Indian online gaming industry was worth an estimated $290 million (USD). And with the industry set to grow further, the top players have looked to this market to replace the losses from China. Admittedly, not every one of the nation’s 120 million online gamers play poker, and there are several states where the game is not permitted, but the potential to increase online poker’s share of that rather large pie is there for all to see.
The Future
It’s hard to predict what may happen in the future, but since the Chinese ban came into effect, one thing has become abundantly clear: the poker industry both online and live still thrives. Existing poker markets, such as the Philippines, Malaysia and Macau have flourished while emerging markets such as Vietnam are finally starting to see the returns on their investment in poker. And with Japan also set to enter the market with casinos ready to open by 2024, the future does look bright for live poker.
Such will likely have a positive effect on the online game in the region. Online poker providers usually sponsor major events, and with more casinos opening than closing, there will be a significant market for local online satellites to qualify for live tournaments held throughout the region. The future also looks bright for online poker.
So, to answer our earlier question on the effects of the Chinese online poker ban, we’d have to say that yes, the ban has affected the Asian market, but not in the way we expected. While local players struggle to play, tourism in neighboring countries has enjoyed a boost while live poker and online poker both look set to boom in the coming years. Perhaps China will retake their seat at the poker table soon, but for now, the industry survives without them.
