Oriental Game - The Monthly Bet (November 2015 Issue)

NOVEMBER 2015 ISSUE | 201511
VOLUME 2 | 2
THIRD PARTY PAYMENTS

AND CRYPTOCURRENCIES
BITCOIN MARKET IN CHINA |

UNIONPAY OVERSEAS WITHDRAWAL LIMITS |
BITCOIN IN TAIWAN AFTER PAYPALS EXIT | PayPal
CONTENTS // THIS ISSUE...
ASIA i-GAMING
4
8
12
Thailand and Its Proposal to Set Up an

Internet Firewall Similar to China
About the Live Casino Industry Craze

and Its Rise in the Asian Market
Recent Illegal Gambling

Crackdowns Across Asia
THIRD-PARTY PAYMENTS/
CRYPTOCURRENCY
17
19
22
25
China Sets UnionPay Overseas Cash

Withdrawal Limits
China Is Dominating the Bitcoin

Market, Slowly but Surely
PayPal Exits Taiwan; Gives Bitcoin

a Chance to Prosper
PayPal
About
The Monthly Bet
About the
Topics in this Issue
Our aim for The Monthly Bet

magazine to create an avenue
where you, our valued partner, could
find more information about the
industry as well as in-depth features
on different issues and topics that
surround our industry. Oriental Game
believes that sharing new information
and knowledge is integral to the
growth of our companies together.
In this issue of The Monthly Bet, the

focus is on the recent developments
on third-party payments and
cryptocurrencies. Game payment
methods are an integral part of online
gambling, so we took a closer look
at what is happening around Asia
and Europe regarding this aspect.
Topics include Chinas emergence as
a Bitcoin powerhouse, Europes plan
to regulate Bitcoin, Chinas setting
of overseas withdrawal limits for
UnionPay users, and Bitcoins chances
after Paypals exit from Taiwan.
Completing this months publication
are the iGaming news and features
from both Asia and Europe.
As we continue to provide more

issues in the succeeding months,
please continue to support our
initiatives and I assure you that you
would truly find our magazine a
worthwhile read.
-Richard, Marketing
-Richard,
Europe Could Embrace Bitcoin,

Cryptocurrency
EUROPE iGAMING
29
In 2019, One in 10 Adults Will Be

Gambling Online
2019
31
The Fast Increase in Gambling

in the Czech Republic
34
Bitcoin
Paypal
The thrust of The Monthly Bet is to

bring to you relevant content about
iGaming, as well as updates within
Oriental Game that wed love to
share with you. I personally hope that
everything featured in this e-magazine
issue will help you gain insights
about the ever-growing industry of
online gambling. I also hope that you
continue patronizing our publication
and, of course, Oriental Game.
-Ivan, Writer/Editor
-Ivan,
Not Just an Online Payment

Processor: Skrills Venture in
Gambling Affiliate Marketing
Skrill
Writer/Editor // Ivan Competente

ijcompetente@neworientalclub88.com
Customer Support
support@orientalgame.com
Marketing // Richard Murillo

rmurillo@orientalgame.com
Sales // John Philippe Chua

jpchua@orientalgame.com
http://www.og6666.com
3
November 2015
ver the past few years, Thailand has not been

timid when it comes to banning websites
that they deem problematic. Before 2006, 34,411
websites were blocked by the Royal Thai Police, the
Communications Authority of Thailand, and
the Ministry of Information and Communication
Technology or MICT. A large chunk of these sites
involved pornography at about 60%, while 11% were
threats to national security, including criticisms to the
countrys leaders plus the royal family. Only 2% were
illegal gambling sites. During this time, Thailand only
had a single international Internet gateway.
2006
3441160%11%
2%
By 2006, the country loosened its grip on Internet

traffic, which led to over a hundred ISPs that were
established there. These Internet service providers
are now channeling traffic through ten international
gateways. Despite this, the country continued to police
Internet content, but not as systematic as that of China.
Thailand and Its Proposal to Set Up

an Internet Firewall Similar to China
Chinas Great Firewall is

surely complicated given
its intricacies, but it is
not possible that other
countries may replicate it.
4
November 2015
Thailand and Its Proposal to Set Up an Internet Firewall Similar to China | ASIA iGAMING
2006
10
likely that that website wont be seen when searched

using Chinese ISPs. Indeed, websites that contain
any harmful information such as politically and
socially-sensitive topics or harmful activities such as
gambling and promoting sexually suggestive materials,
are prohibited.
What China does is not just block certain websites

individually; they use techniques to scan URLs and
web page content to filter keywords that are blacklisted
like, say, Tiananmen or democracy. Generally, it
controls the Internet gateways where traffic travels
between China and the rest of the Internet using a
combination of firewalls and proxy servers stationed at
the gateways. It is from these gateways that Internet
traffic is analyzed and manipulated.
Another Great
Firewall?
About Chinas
Great Firewall
Internet censorship in mainland

China is very much
well-known throughout the
world, so much so that the media
dubbed the various legislations
and projects that the government
initiated as the Great Firewall of
China. Controlled by the Chinese
Communist Party (CCP), it is
the most advanced and most
extensive Internet censorship
regime in the world. Basically, if
the content of a certain website
is critical to the government or go
against the
policies implemented by the CCP, then it is highly
Chinas Great Firewall is surely

complicated given its intricacies,
but it is not possible that other
countries may replicate it. In
fact, Thailand may possibly get
in on the act after recent reports
revealed that the present military
government is laying down
the political foundation that
would radically restructure its
own Internet. In a nutshell, this
master plan would allow officials
to closely monitor almost all
digital traffic going in and out of
the country.
November 2015
2014
facebook google
2006
Negative
reactions
to just one will be a tool to control inappropriate

websites and the inbound of information and news
from overseas to Thailand. This is obviously echoing
Chinas thrust in Internet censorship.
Uttama
Savanayana,
What this means

for online
gambling in
Thailand
Thailands plan would

mean that among other
things, online gambling
Of course, the Thais,
may be immensely
which have benefited on
affected. It is worth noting,
the fast Internet speeds
however, that even though
and turning the country
Thailand prohibits any
into a regional IT hub,
form of gambling (except
responded negatively on
the
national lottery and
the military governments
horserace
betting),
it
is
still
a
big
business there.
plan. When this news came out, around 72,000 people
had signed a Change.org petition calling on the military In fact, three-fifths of Thais engage in poker, sports
junta to cancel the proposal. Critics have also said that betting, or some form of gambling.
the proposal may have horrible repercussions. Not only
will this further increase censorship, but it may also
leave the countrys status as an IT hub vulnerable in

3/5
case the single gateway fails at some point.
72000
Pushing through with the plan would mean Thailand is
really serious in crippling gambling that they consider
illegal. Then again, there is no guarantee that any

gambling activities will be fully eradicated, let alone
the government discourage people from gambling

In an attempt to allay the publics growing concern over online or otherwise. Indeed, building a firewall like that
of China involves a lot of technical know-how. Sure,
this possibility, the head of Thailands MICT, Uttama
Thailand, being one of Southeast Asias prominent IT
Savanayana, said that the proposal is not designed
hub, can pull it off, but even if the single gateway is
to spy on Internet traffic flow, but to serve basic
economic needs. This is in stark contrast to the recent already established, it will still have kinks that need to
be ironed out.
cabinet statement saying that narrowing the gateway
6
November 2015
Chinas own firewall may be

intimidating, but for all we
know, it may not be that perfect
as the thought of blocking or
censoring just about everything
is, to say the least, challenging.
There has been success in
bypassing the firewall with all
the VPNs, and it is no surprise
that Thailands own version of it
can be bypassed, too, thus the
possibility of creating even more
opportunities for individuals
to collect wagers online from
interested bettors.
vpn
About 37 percent of Thais are Internet users. With

the plan to restrict the countrys Internet traffic
through a single gateway now in the open, most
of the netizens fear that the military government
will easily control what they see and what they
cannot see.
It is worth noting, however, that

even though Thailand prohibits any
form of gambling (except the national
lottery and horserace betting), it is
still a big business there.
37
The military junta, ever since taking over Thailand in

2014, has since been active in blocking hundreds of
sites they consider illegal; even Facebook and Google
wer e not spared for a time. Now, high ranking military
officials are intent to revert to the single Internet
gateway setup that was previously monopolized by
the government pre-2006. That would mean that the
government will no longer need to request ISPs to
block a site or issue court orders.
7
November 2015
But why is it a phenomenon in the first place? It is

worth mentioning first the no.1 gambling market in
Asia: China. With the exception of Macau and the
state-run lotteries, the mainland strictly prohibits any
form of gambling. The Chinese, given their willingness
to gamble, began looking elsewhere. Before, they
had no other choice but to visit Macau, as well as
other countries in the world where brick-and-mortar
gambling is welcomed, even it would mean wasting
money just for travel alone.
This is what basically happens in a live casino. First

developed in Europe, it is one of the fastest-growing
aspects of online gambling. So popular is this industry
that it made waves in the Asian continent not long
after.
Live casino industry in Asia: a

phenomenon
---
Makati City, Philippines:

one of the top live casino hotbeds in Asia
:
A typical live casino studio |
About the Live Casino Industry Craze

and Its Rise in the Asian Market
In a typical live casino setting, whether it is in a real

casino or in a studio, a dealer manning, for example, a
baccarat table, is facing a static camera, which records
the action in real time. The live footage is then fed to
the servers and then streamed over the Internet going
to the players desktops or mobile phones. The cards
being dealt are also fed to the servers after being read
by a visual recognition device.
8
November 2015
About the Live Casino Industry Craze and Its Rise in the Asian Market | ASIA iGAMING
Whenever we think of gambling in Asia, we think first

of Macau, a former Portuguese colony and Chinas
special administrative region. It is deemed the focal
point of Asias multi-billion dollar gambling industry; so
big that it overtook Las Vegas, Nevada in the United
States in terms of gross gaming revenue. Sure, the
grandiose brick-and-mortar casinos in Macau, as well
as the vast gaming floors and numerous attractions
there is what makes the Asian gambling a revenuegenerating industry. But the Asian gambling industry
is not only restricted to these establishments; even
the phenomenon of live casinos and its accompanying
technology is a big reason for its growth.
But as technological advancements, particularly

Internet connectivity and computing, became
necessities in this fast-paced world, the combination
of gambling and these innovations became inevitable.
What branched out from the whole scope of
Asian gambling is an all-new facet; an alternative
where players can bet at the comfort of their own
homes without ever going to Macau or any casino
establishment there or outside the mainland. Later
on, smartphones became the thing, which made it
possible for these online players to gamble at any time
and any place. Thus, the live casino industry was born.
As technological advancements,
particularly Internet connectivity and
computing, became necessities in
this fast-paced world, the combination
of gambling and these innovations
became inevitable.
City of Macau: the focal point of Asias multi-billion dollar gambling industry
:
In the perspective of the players, they are able to place

their bets with the aid of the interface found on their
desktop or mobile phone screens. The interfaces also
allow them to read the instructions on how to play
the casino games, as well as check their respective
account balance and view their betting history of
the games they previously played. The software
being used basically controls the whole game, as it
calculates the resulting payouts and promptly updates
the information found on the players screen interface.
November 2015
A brief history of online gambling,

live dealer casinos in both Europe
and Asia
To better understand live casinos and online gambling

as a whole, it worth noting the place where it all
startedEurope. In 1996, the Isle of Man-based
software development company Microgaming
launched its first online casino. Since then,
Microgaming, along with other similar companies
like Playtech and Evolution Gaming, began to shape
the live casino industry to what it is today, through
innovations that go with the advances in technology
particularly in Internet speeds. Eventually, in 2003,
Playtech rolled out its first live dealer solution, which is
then distributed to their suppliers (that is, online casino
websites). It was the first time that online gamblers
dont just play with desktops in-front of them. They are
playing in-front of their desktops but with live dealers
in action, all in real time.
1996 ,
Microgaming
Microgaming Playtech
Evolution Gaming
2003
Playtech
10
Live casino game displays are a common

sight inside the studio.
3
1998 Betworks
2004 EntwineTech
SunCity Asia Gaming
HoGaming
Whats next for the live dealer

casino industry in Asia?
?
Growth to other parts of Asia
To cater to the Chinese and the Asian market as a

whole, companies providing live dealer solutions have
taken their operations to regions where gambling is
legalized. The Philippines, for one, is one of the most
liberal gambling laws in the world and is considered one
As the European live casino market began its evolution, of the hotbeds for live casinos. Online gambling is fully
legal in the Philippines, with the First Cagayan Leisure
the Asian market for live casinos began to flourish.
and Resorts Corporation (FCLRC) the chief regulator of
In fact, it followed behind Europe by almost three
live casinos targeting foreign punters across Asia. The
years for technological advances. In 1998, Betworks
established itself as the first Asian online casino, but it country is home to numerous casino studio locations
wasnt until 2004 when EntwineTech (a.k.a. EA) blazed that are mostly situated in one of Manilas suburbs:
Makati City. Among these companies are Playtech,
the trail in the live dealer casino market. Since then,
other similar companies such as SunCity, Asia Gaming, which has an Asian studio apart from the European
and HoGaming began to enter the industry. Just like in studio, and the Philippine-based EA or EntwineTech,
Opus Gaming, and Asia Gaming, among others.
Europe, they were able to come up with innovations
that appealed to the gambling market which is mainly
composed of the Chinese. The companies may have

copied improvements from the European market, but
they were able to take into account user experience,

First Cagayan
a big key in expanding online gambling, especially
Leisure and Resorts Corporation FCLRC
live casinos, in Asia. For instance, the squeeze card
makati
function, as well as robotic dealers, are just two of
Playtech
the many advances that the Asian market pioneered,
makati EA EntwineTech, Opus
which the European market did not have.
Gaming, and Asia Gaming
November 2015
Things are definitely looking up for this growing

facet of online gambling in Asia. Nowadays, thirdparty payment processors, which continue to attract
gamblers who want to move their bets via electronic
means in the safest and most secure manner, is
growing at a fast rate; a testament to the rise of live
dealer casinos and online gambling as a whole.
What will also bring about the constant rise in live

dealer casinos within Asia is the commercialization of
mobile technology. Now, people are connected to the
Internet not just through desktops, but also through
mobile phones. Incorporating this and the industry
would surely boost in revenue. Online gamblers are
able to do place their bets anytime and everywhere, as
long as they have stable Internet connection.
Also, because of the stiff competition within the

industry, companies that provide live dealer solutions
come up with ways to bring in more online gamblers.
Indeed, they employ different methods in their
marketing efforts, such as bringing in female nondealers to provide entertainment for the players (they
were trained to deal!) and bonuses, promotions, and
the like. Above all, the key for the industry to remain
a phenomenon in the Asian market is for it to keep up
with Europe in terms of technology and combine the
needs to the market in order to create a truly unique
product offering.
,
Surely, the Asian live casino industry will continue to

prosper. It may face challenges along the way, but
with more gamblers across the continent taking part in
this, the industry has never been as robust and more
popular as it was when it first came to be.
11
November 2015
February-August 2015
2015-28
Recent Illegal Gambling Crackdowns

Across Asia
The year 2015 saw local Asian news outlets

reporting about illegal gambling crackdowns
that have resulted in the arrest and
prosecution of thousands, if not hundreds,
of individuals. The following is a timeline of
events involving local authorities from across
Asia successfully carrying out operations to
curb illegal online gambling starting earlier
this year.
January 2015
20151
A call center in Makati City in the Philippines was
raided by the operatives of the Bureau of Immigration
(BI). The crackdown resulted in the arrest of 73
foreigners from over eight countries, all of whom
were taken to custody for lack of valid work visas.
The call center in question was being operated by
Super 7 Ventures, a company which, according to an
anonymous tipster, was accused of operating a realmoney online gambling site cloaked as a call center on
behalf of a syndicate.
Makati 73
Super 7
12
November 2015
Recent Illegal Gambling Crackdowns Across Asia | ASIA iGAMING
How can we not include Bo Wang on this timeline?

He was accused of heading a PHP91 billion crime
syndicate in the mainland via the Manila-based Skybet
network gambling company. This all started when the
same BI in the Philippines arrested him at the main
airport in Manila February 5 after flying in the country
from Malaysia. He was
found to possess a cancelled
passport and his name was on
the blacklist of the bureau. A
month later, while Wang was
in detention in the country, the
Chinese consulate informed
the BI that he is wanted for
heading an illegal online
gambling operation. It was
later revealed by the Chinese
embassy that he was fugitive wanted by the Interpol
and the government of China for illegal gambling and
money laundering. By August, the Secretary of Justice
ordered Bo Wangs deportation to his home country.
Skybet910
25
June 2015
20156
Six South Koreans were arrested in a raid on illegal
online gambling operations in Thailand. The police
arrested the men while allegedly receiving bets
on overseas football matches. Seized inside the
apartment where they were caught red-handed were
mobile phones, computers, bank books, and other
electronic devices. Actually, this was just one of the
many crackdowns that the Thai authorities carried out
against expatriate South Koreans living in the country.
July 2015
2015-7
Another online gaming
call center raid occurred
around this time in, again,
the Philippines. The
number of people arrested
that time, however, was
staggering: more than
200 foreign nationals. Like
what happened in Makati
City months prior, the
bust, which involved the
authorities rounding up the units at the Newport City
complex in Pasay City, found that the nationals were
found to have no proper documents and the required
work permits to perform work in the Philippines.
Makati
200Pasay
August 18, 2015

2015-8-18
The clean the Internet initiative that the Chinese
government announced a month prior was again
a success after the Chinese police announced the
detentions of over 15,000 individuals. The detentions
were the result of crimes that puts into jeopardy
Internet security. Indeed, the police investigated
66,000 websites, exposing 7,400 cases of
cybercrime where the sites promoted illegal and
harmful information such as pornography, gambling,
firearms, and explosives. This is, of course, the
Great Firewall of China doing work.
13
November 2015
August 23, 2015

15000
2015-8-23
660007400
South Korean authorities have broken up an Internet
gambling operation hiding under the guise of an online

shopping network, the Korea Times reported. At least
August 20, 2015
four individuals were arrested in the bust. The illegal
gambling ring involved 30 different sites taking bets
2015-8-20
from Korean customers, all of which operated from
Forty-eight foreigners suspected of operating an illegal within China to avoid detection by the authorities.
Meanwhile, in Chiang Mai in Thailand, a group of
online gambling den were detained after Indonesian
South Korean expatriates running an illegal gambling
authorities raided a tourist resort in the island of Bali.
Thirty-five men and 13 women from China and Taiwan operation were arrested by immigration authorities.
The leader of the group said that they chose to operate
were rounded up, some even trying to escape the
police. This is expected for a countrywith 90% of the in Thailand mainly because of the lax prosecutions
populations practicing Islamthat strictly prohibits any against online gambling, as compared to his home
country.
form of gambling.
4835
13
90%
What can be seen in this timeline

4
of events?
30

Based on the events that happened over the past few
months, one can notice that there common themes

occurring across the continent. Groups of individuals
September 1, 2015
are actually moving to another country with lenient
2015-9-1
online gambling-related laws and regulations, and then
they will set up their operations there with the hopes
Fifty-six people in the Socialist Republic of Vietnam
of targeting bettors back home. Sometimes, they
were sentenced by the Peoples Court in Ho Chi Minh risk themselves of getting caught, especially if they
City to prison time ranging from nine months to eight
possess tourist visas instead of working visas. Another
years for their alleged involvement in illegal online
theme found in this timeline is the fact that there are
gambling. Eight others were also tasked to pay a fine
still citizens that continuously illegally operate websites
between VND 30 and 50 million. The gambling ring
despite the fact that their respective countries have
operated five years ago through 188Bet, wherein the
strict regulations against any form of gambling, not
members disguised themselves as telecom equipment to mention harsh penalties. Not to be forgotten,
company employees.
however, is the effort of the authorities to carry out
the operations and successful detain the individuals
56 involved. Apart from the local police doing the busts
988
against their fellow citizens, there is also cooperation
3000-50005 between countries where foreigners charged with
188bet
illegal gambling are deported as evidenced by the Bo
Wang situation mentioned above.
September 8, 2015
2015-9-8
Days after the abovementioned, Vietnamese

authorities were once again successful in entrapping
individuals involved in illegal gambling. Twenty-eight
people were charged for engaging in an online
gambling ring that collected over VND 301 billion ($13
million) in bet money. The alleged leader of the group
Pham Huy Toan reportedly possessed almost 60 bank
accounts that he used to obtain said amount of money
from local players, including doctors, students, and
even government officials.
2015-9-8
28
30101300
Pham Huy Toan 60
14
November 2015
15
November 2015
China Sets UnionPay Overseas Cash

Withdrawal Limits
Deterring money laundering and decreasing capital

outflow are just some of the reasons why Chinas
State Administration for Foreign Exchange or SAFE
decided to tighten management of cross-border
cash withdrawals. Just before September ended, the
Chinese foreign exchange regulator announced new
annual limits on automated teller machine (ATM) cash
withdrawals outside of the country using the UnionPay
electronic transfer system.
SAFE
9
ATM
The limits, which
UnionPay said aimed
at further enhancing
the work on anti-money
laundering and the
prevention of financial
risks, will take effect January 1, 2016, wherein the
banks card holders will now be only be allowed
to withdraw up to RMB100,000 in overseas cash
annually. The SAFE, however, did not wait for 2016;
from October 1 until the end of the year, each card
may be used to withdraw no more than RMB50,000.
The limits are on top of the existing policy which sets
daily withdrawal limits at RMB10,000 per ATM card, or
equivalent amount in foreign currency.
According to SAFE, violators will be added to a watch

list and will be subsequently be prevented from
making additional cash withdrawals outside China.
Apart from Chinese UnionPay card holders, the annual
limits will also affect those with Visa and MasterCards
that were issued in the mainland.
SAFE
Visa
MasterCard
SAFE has implemented

policies to urge consumers
to use UnionPay cards and
other bank cards for crossborder transactions since
2008. But a spokesman
from the said government
agency said that recent
monitoring results show
that UnionPay cardholders
overseas have withdrawn strangely large amounts of
cash with high frequency, something that authorities
have warned against.
SAFE 2008
2016-1-1
1010-1
5
1
16
17
16
China Sets UnionPay Overseas Cash Withdrawal Limits | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY
November 2015
China Is Dominating the Bitcoin Market,

Slowly but Surely
Implications in the gambling arena
Of course, the regulatory changes in the use of

UnionPay ATM cards have repercussions in the
gambling market, regardless if it is land-based
or online. Indeed, many Chinese punters use
their UnionPay cards (or Chinese-issued Visas or
MasterCards) to access their cash for play not just in
Macau casinos, but also in other places around Asia
where gambling is fully regulated.
On the other hand, brokerage firm Bernstein Research

indicated that the new regulations will cause
incremental headwind to Macaus gross gaming
revenue (GGR), especially the premium mass
gambling market. This refers to the group of players
who are considered highly valuable among casino
operators and are oftentimes able to place cash bets
greater than those who bet in small amounts or the
grind mass players.
Bernstein Research
ATM

According to the brokerage firm, the premium mass
market are those who utilize, among others, UnionPay

Financial analysts have varying opinions with regards
the move. On one hand, UBS Securities Asia Ltd said
that there will be no material direct impact on the
Macau gambling market, because using the ATMs for
cash withdrawals is just one of the sources of cash
for most gamblers. But then, it cautioned that the
measures are likely to cause sentiment overhang
among mainland consumers using the card.
18
cards to withdraw cash for play in Macau casinos.

Although many of them have multiple cards under their
names, these gamblers may find their access to cash
more limited once the limits are implemented next year.
UBS
ATM
17
November 2015
China as we know it is no longer the so-called sleeping

dragon; right now, it has surpassed the United States
as the largest economy in the world. That distinction
wont be possible without the countrys bountiful
resources, a vast workforce, and technological
advances. It is not anymore surprising that China is
competing with the rest of the world. In fact, over the
recent years, China has significantly influenced world
market trends, with impact affecting over a plethora of
industries, including the market involving Bitcoin.
China Sets UnionPay Overseas Cash Withdrawal Limits | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY
Currently, a substantial share of transactions involving

cryptocurrencies comes from China. Reports even
suggest that the whole Bitcoin market in the country
is made up of about 80 percent of Bitcoin and other
Bitcoin alternative (altcoin) transactions. Indeed, any
changes happening within the Chinese market can
have repercussions on a global scale; the same can be
said when it comes to cryptocurrencies.
80%
19
18
China Is Dominating the Bitcoin Market, Slowly but Surely | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY
November 2015
81.9%
There is no doubt that the yuan devaluation sent

ripples throughout the entire global market, but it just
proved China just how strong it is. This was apparent
in the effects felt throughout the entire Bitcoin market
wherein Chinese citizens who use Bitcoin are greatly
liable for advancing the digital currency into reaching
its objectives.
huobi
okcoinbtcchina
As we all know, China is strict when it comes to

gambling, with the exception, of course, of state-run
lotteries and the regulated gambling happening in the
special administrative region of Macau. But given the
latters gross gaming revenue being generated from
both land-based and online gambling, there is definitely
an opportunity for Bitcoin gambling, especially in a
Bitcoin market hub as big as China.
We surely get the fact that China is instrumental in

raising the bar on the utilization of the Bitcoin and in
the aspect of digital currency as a whole. This puts into
light, therefore, the question of whether to regulate
cryptocurrencies in the country or not. Leon Li, the
CEO of Huobi, one of Chinas top Bitcoin exchanges,
argued that regulating the Bitcoin should be
encouraged and supported strongly, as the Chinese
Bitcoin market is the largest in the world in terms of
Bitcoin trading and mining, something that can display
great potential.
Chinas status as a world economic superpower can be

attributed to a lot of things, including the growth of the
Bitcoin industry. The controversies surrounding Bitcoin
might still be lingering, but the opportunities for using
this digital currency is already apparent, especially that
online gambling using Bitcoin is possible. Definitely,
there is a future for the Bitcoin gambling market in
China, given the technology available for it to happen
without crossing the line of being illegal. Yet only time
will tell for this really happen.
While the Bitcoin gambling industry is far from
getting developed into its initial stages, one can just
imagine how the whole sector will flourish if the

government decides to fully regulate it, let alone other
cryptocurrencies. Though restricted, gambling with
the use of Bitcoin can provide the best solution that
will benefit not just the players, but also the operators.
For one thing, players with Bitcoins to use can
anonymously place their bets online. Plus, transactions
are hassle-free and easy. And, with the numerous
technologies available, buying cryptocurrency (or
Bitcoin for that matter) and then exchanging them for
RMB, USD, or any other fiat currency can be done.
Truly, Bitcoin will drastically change the gambling
market, making it an industry that is even more
While the Bitcoin market in
transparent, profitable, and convenient for players.
CEO Leon Li
Even though the Bitcoin is restricted in the mainland

(thanks to the PBOC), Huobi and all the other Bitcoin
exchanges such as OKcoin and BtcChina continue to
perform trade transactions. While the Bitcoin market
in China remains strong, the question of whether
or not Bitcoin gambling will prosper still needs to
be answered.
China remains strong, the

question of whether or not
Bitcoin gambling will prosper
still needs to be answered.
20
19
November 2015
It can be remembered that last August, the Peoples

Bank of China (PBOC) devalued the yuan by 1.9
percent in an effort to make its exchange rate more
market-oriented. This led to investors exchanging their
yuan (formally, the renminbi or RMB) to Bitcoin as a
way of rescuing the equivalent value of the amount.
This reaction is what led to the shift in the Bitcoins
price, not to mention a major movement in the graph
involving the fiat and the digital currencies. Apart from
this, analysts saw that these investors are exchanging
their cash into Bitcoin, and then exchange whatever
Bitcoin they have back to RMB or USD later, depending
on how the digital currency performs in the market.
Any uptick will make the investors convert their Bitcoin
to RMB, whereas any decrease in the price gives them
the option to convert the same to the USD instead.
21
November 2015
PayPal Exits Taiwan; Gives Bitcoin

a Chance to Prosper
PayPal
Ever since it broke away from its parent company
eBay, PayPal, one of the worlds top online payment
services, has been announcing several changes that
can be described as questionable. Among these
changes targeted customers from Taiwan, in which the
company announced earlier last month that they will
cease supporting domestic transactions there.
PayPal
eBayPayPal
The following is the companys notice informing

Taiwanese users of the change:
Please note that you will still be able to receive

payments from international sales and trading, as
well as make payments for purchases of goods or
services from overseas merchants.
We sincerely apologize in advance for any

inconvenience this may cause. We will continue to
enhance our platform and improve our services to
serve your needs.
Dear customers,
Well be streamlining our services in Taiwan,

and our system will be enhanced to ensure that
domestic commercial payments will not be
processed, in compliance with local laws and
regulations.
These changes will take effect from September 21,

2015, and you will not be able to use your PayPal
account registered in Taiwan to send payments to,
or receive payments from, other PayPal accounts
registered in Taiwan.
2015-9-21
PayPal
The phrase in compliance with local laws and

regulations is not unexpected, considering the fact
that there have been changes in Taiwan in terms of
its laws and regulations regarding online payments.
Case in point: last year, Taiwan presented an e-payment
draft law that would help facilitate virtual payments
across the country. The catch, however, is that the new
regulation did not include financial products purchase.
It was apparent that the law does not permit thirdparty payment deposit accounts for buying financial
management items.
22
November 2015
PayPal Exits Taiwan; Gives Bitcoin a Chance to Prosper | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY
Thus the announcement from PayPal. Any Taiwanese

with a registered PayPal account are now unable to
perform domestic transactions with other PayPal
account users there. Overseas transactions remain
open, though.
PayPal
PayPal
Now that PayPal is out of Taiwan, it left its users and

online merchants staring blankly and thinking, what
now? Those who heavily rely on the online peer-topeer service are obviously left with no other recourse
but to search for alternatives. Luckily for them, the
virtual currency Bitcoin is one of these options, and it
is ready to provide Taiwanese PayPal customers with a
possible solution for the payment requirements.
23
November 2015
PayPal
PayPal
True enough, the island-country is just one of the few
places in the world where virtual currency can be
bought over-the-counter. In July, Taiwan startup
company Maicoin, a one-stop Bitcoin platform
providing trading and payment services, enabled
in-store purchases of the virtual currency in over
10,000 convenience stores there. This made Bitcoin
even more accessible; aside from over-the-counter
purchases, one can also use the in-store payment
terminal just by placing an order through the Maicoin
mobile app.
PayPal
Maicoin
Despite the lack of regulations, the use of Bitcoin

may still likely flourish now that PayPal is gone in
Taiwan, and one industry that can benefit from this is
online gambling. Right now, it is illegal to engage in
online gambling in the country, but that has not stop
bettors from doing so. For all we know, there may be
punters who use PayPal as their third-party payment
provider for their gambling funds. Given the situation,
Bitcoin is a fitting replacement for the online payments
processor, especially since Bitcoin gambling is gaining
steam in terms of popularity in Asia.
7
Maicoin
10000 PayPal
Maicoin
app
PayPal
PayPal
PayPals Taiwan pullout means that Bitcoin can now
grab the opportunity to be recognized and increase its
popularity in the country, thanks to Maicoin and all the
other Bitcoin exchanges available in the country. It is
the Bitcoins potential to be used as an alternative for
peer-to-peer transactions that makes it possible for it
The use of Bitcoin may
and all the other virtual currencies out there to prosper
in other parts of Asia. The main caveat in all of this,
still likely flourish now that
however, is that regulations for virtual currencies like
PayPal is gone in Taiwan, and
Bitcoin have not yet been fully established, causing
one industry that can benefit
soon-to-be users and investors to be extra careful.
This limits the full potential of adopting Bitcoin, or any
from this is online gambling.
virtual currency for that matter, into the Asian market.
24
November 2015
PayPal
Europe Could Embrace

Bitcoin, Cryptocurrency
hile still a relative unknown to most people, it is

slowly gaining a head of steam in the financial
ecosystem. Yet since it was introduced in 2009, the
Bitcoin, while it has great potential, is still shrouded
with mystery. No wonder it is considered a crypto
currency, given the fact that it uses cryptography to
control its creation and transfer.
2009

Europe Could Embrace Bitcoin, Cryptocurrency | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY
25
November 2015
Accepting Bitcoin as a valid payment method is still

uncertain in the realm of online gambling in Europe,
although there have been instances where countries
with definite gambling regulations welcomed the idea.
For example, online casino Vera&John became the first
operator licensed in Malta to accept Bitcoin, only to be
discontinued by the countrys gambling regulator.
1
(2)
(3)
Bitcoin
Vera&John
With these Bitcoin characteristics come the risks of

using it, especially within the scope of online gambling
in Europe. For one, those who oppose the use of
Bitcoin raise the issue of a likely breach of regulations
concerning anti-money laundering. European
countries that regulate land-based and online gambling
have specific rules for such, wherein a transaction
is deemed dubious if it involves withdrawing or
depositing money in a gaming account through modes
of payment not held in the game account holders
name. Another issue is that of the traceability of
Bitcoin transfers as opposed to the typical transactions
using fiat money. With no central authority to monitor
Bitcoins movement and with no banks, financial
institutions, or any regulating entity to manage it would
mean a great concern among authorities investigating
questionable Bitcoin gambling transactions.
Despite this, there is still a possibility that regulators

from both the finance and gambling sectors may
consider imposing a framework that will duly regulate
Bitcoin, as well as other existing cryptocurrencies, as
a way of protecting individuals trading using them and
eliminating the risks that limit them to harness their
true potential. Fortunately, there is progress.
26
November 2015
In a recent development, the European Banking

Federation (EBF), a trade group representing 32
national banking associations and 4,500+ banks
throughout the continent, is calling for governments
and businesses to work together to come up
with a framework for regulating Bitcoin and
possibly other cryptocurrencies. The EBF provided
recommendations to policymakers, such as further
research into the technology surrounding Bitcoin and
continuous evaluations of rulemaking. But the most
notable of the groups proposals is the application
of an all-encompassing framework for regulating
cryptocurrencies based on anti-money laundering laws
already in place in certain European countries.
EBF, 32
4,500
EBF

Also of note in the EBFs recommendations is the
need to conduct public and private assessment of
blockchain technologies, recognizing their capability
to reduce costs, secure consumer spending and
introduce greater liquidity to the market. Though
regulating cryptocurrencies to the same level as that of
traditional currency transactions is being called upon,
the EBF noted that doing so should allow room for
innovation.
EBFblockchain
EBF
Still, the EBF, despite having no strict stance on

Bitcoin, said that its future remains unclear, given that
it was built as an experiment. But one cant help but
think of the simple thought of implementing concrete
regulations for Bitcoin and other cryptocurrencies.
That, in itself a development that would help further
not just the financial sphere in the continent, but
also the aspect of online gambling. If there comes a
time where a handful of European nations consider
incorporating the Bitcoin within their existing gambling
regulations, just imagine the limitless potential for both
the cryptocurrency and the industry.
EBF
The European Banking

Federation (EBF), [] is calling
for governments and businesses
to work together to come up
with a framework for regulating
Bitcoin and possibly other
cryptocurrencies.
EBF
[...]
What makes this electronic currency warranted of

its crypto tag is that (1) no public entity controls it,
making it an unregulated virtual currency, (2) it is based
on a peer-to-peer network that allows an individual to
anonymously hold and transfer, and (3) it depends on a
specific exchange rate based on the market conditions
and not linked to a traditional (fiat) currency.
27
November 2015
In 2019, One in 10 Adults Will Be

Gambling Online
2019
ccording to the National Center for Responsible

Gaming, online gambling is deemed the fastest
growing form of gambling in the world. It is easy to say
why this is so; advancements in technology, especially
with the populace now connected to the Internet
almost every day, allow for punters to conveniently
place their bets or engage in some form of gambling
using either desktops or mobile devices. With Asia and
Europe dominating in the said market, there
is no wonder that things are looking up for online
gambling.
5
Juniper Research
20191/10
So just imagine: a tenth of the worlds population will

place a bet through the Internet by that time! Also,
half of 10 percent come from two European countries
known for having one of the most liberal gambling
laws in the world. Quite a bold prediction, but this is
still possible considering that there are two things that
the research firm believes will play a huge part for the
said projections. The first is the transition of lottery
ticket sale from terminals or outlets to mobile devices,
while the second one is the increasing liberalization
of online markets across Europe and the US, driving
usage of casino and sportsbook services.
In fact, a new study suggests that the sector is set to

explode over the next five years. A new report from
UK-based market analysis and research firm Juniper
Research revealed that one in 10 adults all over the
world are likely to engage in some form of online
gambling by 2019, with half of the adults involved
coming from the United Kingdom and Italy.
In 2019, One in 10 Adults Will Be Gambling Online | EUROPE iGAMING
29
November 2015
Aside from the abovementioned projections, Juniper

Research also took note of the current movements in
the realm of gambling within the scope of the United
States and Europe. Basically, the firms research study
revealed that the only US states where gambling is
regulatedDelaware, Nevada, and New Jerseysaw
a dramatic uplift in revenues over the past 2 years.
Most of the US states still consider gambling illegal,
but offshore sites that accept bets in US dollars like
TopBet and Bovada continue to bring in much traffic.
Thus, the firm believes that in a realistic sense, more
states may likely legalize intrastate online gambling
with the goal of generating tax revenues.
Meanwhile, on the other side of the Atlantic Ocean,

the firm, while recognizing the probable harmonization
of national gambling policies with the enactment of the
latest EU directive on AML (anti-money laundering),
cautioned that the ongoing uncertainty with regards
to the intricate licensing procedures had resulted in
many notable operators exiting European countries.
For instance, the first few months of the year saw the
exit of Playtech and Mansion from the German market,
as well as the exit of William Hill from the Portuguese
market due to the new tax increase in sports betting.
This, Juniper deems, will result in customers switching
from regulated to unregulated casino operators.
Juniper Research
TopBet Bovada
Playtech and Mansion William

Hill Juniper
The Fast Increase in Gambling in

the Czech Republic
One in 10 adults all over the world

are likely to engage in some form of
online gambling by 2019, with half of
the adults involved coming from the
United Kingdom and Italy.
1/10
30
November 2015
In 2019, One in 10 Adults Will Be Gambling Online | EUROPE iGAMING
When it comes to gambling in the European continent,

countries such as the Italy, Malta, and the United
Kingdom are among those that come into mind given
their clear and definitive legislations for it. But then,
there are a vast majority of countries in Europe that
are not so much like them; these are considered grey
markets. This means that there are some nations that
have either vague legislations for a certain avenue in
gambling or none at all. This could also mean blocking
one form of gambling but allowing another, or allowing
locally licensed operators but not international ones.
The Fast Increase in Gambling in the Czech Republic| EUROPE iGAMING
31
November 2015
One such European grey market is the Czech Republic.

One of the most popular gambling destinations in
the continent, it is home to over 100 casinos in cities
all over the country, most of which are situated in its
capital city Prague. Per capita, it has the more landbased gaming establishments than any European
country. Also, it is home to countless gaming
machines, mostly slots, in almost every establishment.
100
Legal state of gambling in the

Czech Republic
So immensely popular is gambling in the Czech

Republic that the industry is worth well over a hundred
billion korunas (CZK). In 2014, in fact, the Czechs spent
over CZK138 billion on gambling, with an estimated
CZK30 billion in earnings. This applies for both online
and offline gambling. Yet even if the countrys gambling
revenue is up thanks to land-based casinos and slot
machines, it is the countrys emergence of online
gambling thats making it happen.
2012
While legislation is still yet to materialize, online

gambling is gradually increasing in popularity, so much
so that it resulted in the decline in gaming machines
across the country. In 2014, there were only roughly
67,000 of them, a drastic decline from around 102,000
three years prior. Indeed, this yearly development is
what made online gambling prevalent in the country.
2014
310200067000
Right now, there are over 150 online casinos operating

there, many of which accept the koruna and offer
support in Czech. Aside from this, the rise of this
gambling aspect is partly due to the marketing efforts
of the online operators, albeit it is already simple for
gamblers to make deposits and obtain payouts in
korunas. Payment options include debit cards, credit
cards, e-wallets, and other numerous other methods

for funding an online gambling account, as well as
huge bonuses and promotions, greatly contribute to
the increase in the countrys online gambling revenue.
As far as gamblers are concerned, the status quo in
the country allows for them to engage in offshore
gambling.
convenience of gambling online, it is high time for the

government to get back to the drawing board, come
up with legislations that would benefit both players and
gambling operators, and finally grant the latter licenses
in the country. That way, the nation can be mentioned
in the same breath as Italy, Malta, and the United
Kingdom in terms of liberal gambling regulations.
150
albeit
The challenge
The Czech Republic, while solidifying their reputation

as a sought-after haven for land-based casino
gambling, can definitely benefit from regulating online
gambling. With Czech gamblers enamored with the
1000
2014

The thing is, this gambling facet is what makes the

Czech Republic a grey market. The government does
not have any clear-cut legislations that would regulate
online gambling, including granting licenses to national
operators. In fact, the Czech government was taken to
an EU courtand lostjust because their stance for
online gambling is not certain. It werent able to prove
why online sportsbooks are regulated while online
casinos are not. Back in 2012, the Czech Republic tried
to establish regulation for online gambling companies,
only to cancel it a year later after European gambling
operators disapproved of the framework due to tight
restrictions on operators. It was also found to be in
violation of the legal directives of the EU.
32
November 2015
33
November 2015
Not Just an Online Payment Processor:

Skrills Venture in Gambling Affiliate Marketing
Skrill
There is no doubt that online payment processors

are the lifeline of the online gambling industry. Ever
since gambling through desktops and mobile devices
became the thing, these payment solutions have
made it possible for punters to conveniently and
seamlessly move their betting funds through electronic
means. Take for instance Skrill, a
London-based company which
was founded in 2001.
One of the top online payment
processors in the world, it has
since undergone a lot of changes,
the most notable of which is the
companys acquisition by Optimal
Payments to the tune of EUR1.1
billion.
Skrill
2001
Optimal
Payments 11
34
But even before it was acquired,

it has already established a
relationship with the online gambling industry since
its founding, when it was first called Moneybookers.
Since then until it underwent a major re-branding in
November 2015
2010 when it changed its name to Skrill, it became

one of the most preferred payment methods of some
for the worlds biggest gambling operators, making it
increasingly popular among gamblers across Europe
and the United States. With Optimal Payments
acquisition finalized last August of this year, it is
expected to further expand its influence in the market.
Right now, in fact, it took the plunge
into one avenue within the online
gambling industry: affiliate marketing.
Moneybookers
2010 Skrill,
Affiliate marketing at
a glance
services over the Internet through different methods.

These methods may involve organic search engine
optimization (SEO) strategies, pay-per-click, content
marketing, or e-mail marketing, as well as other less
traditional digital marketing efforts.
Skrill
Skrill
Skrill the gambling affiliate has involved itself in

numerous marketing tactics in an effort to get the
attention of potential gambling customers, as well
as those who are already gambling online. To begin
with, the companys website has banners of some of
the most popular online gambling brands operating in
regulated markets. Truly, Skrills new role as a gambling
Affiliate marketing is generally made up of four key
affiliate just goes to show its increased involvement
players. The first is the retailer, or the one offering
in the industry. Even its parent company, Optimal
its products or services and is looking to advertise
Payments, may likewise become more involved in the
them. The second is the network, which acts as the
industry now that operators expand their reach to new
intermediary between the retailer and the publisher,
regulated markets. Definitely, Skrill is not just about
the third important player in the scheme which is
providing their best payment solution, but also taking
simply known as the affiliate. Last, but not the least,
advantage of the opportunity to successfully engage in
is the customer, which is basically the target of the
affiliate marketing efforts. The affiliate is responsible for affiliate marketing with operators.
bringing customers to the retailers website.
Skrill
4
Skrill

Skrill
Skrills new role as
SEO
gambling affiliate
Skrill
With Skrill one of the brands mostly

associated with online gambling, it
is not anymore surprising that it has
ventured into affiliate marketing. It now
has its own affiliate program wherein
websites that successfully bring in
new customers to its own website
can receive money rewards. This is
something appealing, for sure, but
Skrill also has other programs such
as Promotional Centre or Exclusive
Offers, which focuses on both gambling
customers and traders.
A fast-growing market, it is a form of

marketing wherein retailers and other
types of businesses are able to offer
their products or services through an affiliate or any
company responsible for advertising the products or
Not Just an Online Payment Processor: Skrills Venture in Gambling Affiliate Marketing | EUROPE iGAMING
Not Just an Online Payment Processor: Skrills Venture in Gambling Affiliate Marketing | EUROPE iGAMING
35
November 2015
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NOVEMBER 2015 ISSUE | 201511

THIRD PARTY PAYMENTS

BITCOIN MARKET IN CHINA |

CONTENTS // THIS ISSUE...

Thailand and Its Proposal to Set Up an

About the Live Casino Industry Craze

Recent Illegal Gambling

China Sets UnionPay Overseas Cash

China Is Dominating the Bitcoin

PayPal Exits Taiwan; Gives Bitcoin

Our aim for The Monthly Bet

In this issue of The Monthly Bet, the

As we continue to provide more

Europe Could Embrace Bitcoin,

In 2019, One in 10 Adults Will Be

The Fast Increase in Gambling

The thrust of The Monthly Bet is to

Not Just an Online Payment

Writer/Editor // Ivan Competente

Marketing // Richard Murillo

Sales // John Philippe Chua

ver the past few years, Thailand has not been

By 2006, the country loosened its grip on Internet

Thailand and Its Proposal to Set Up

Chinas Great Firewall is

likely that that website wont be seen when searched

What China does is not just block certain websites

Internet censorship in mainland

Chinas Great Firewall is surely

to just one will be a tool to control inappropriate

What this means

Thailands plan would

will this further increase censorship, but it may also

leave the countrys status as an IT hub vulnerable in

illegal. Then again, there is no guarantee that any

the government discourage people from gambling

Chinas own firewall may be

About 37 percent of Thais are Internet users. With

It is worth noting, however, that

The military junta, ever since taking over Thailand in

But why is it a phenomenon in the first place? It is

This is what basically happens in a live casino. First

Live casino industry in Asia: a

Makati City, Philippines:

A typical live casino studio |

About the Live Casino Industry Craze

In a typical live casino setting, whether it is in a real

Whenever we think of gambling in Asia, we think first

But as technological advancements, particularly

In the perspective of the players, they are able to place

A brief history of online gambling,

To better understand live casinos and online gambling

Live casino game displays are a common

Whats next for the live dealer

Growth to other parts of Asia

To cater to the Chinese and the Asian market as a

composed of the Chinese. The companies may have

they were able to take into account user experience,

Things are definitely looking up for this growing

What will also bring about the constant rise in live

Also, because of the stiff competition within the

Surely, the Asian live casino industry will continue to

Recent Illegal Gambling Crackdowns