oriental game - the monthly bet [november 2015 issue]

8/20/2019 Oriental Game - The Monthly Bet [November 2015 Issue]

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THIRD PARTY PAYMENTSAND CRYPTOCURRENCIES

BITCOIN MARKET IN CHINA |

VOLUME 2 | 2NOVEMBER 2015 ISSUE | 2015 11

UNIONPAY OVERSEAS WITHDRAWAL LIMITS |

BITCOIN IN TAIWAN AFTER PAYPAL’S EXIT | PayPal


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Nov

AboutThe Monthly Bet

Writer/Editor // Ivan [email protected]

Marketing // Richard [email protected]

Customer [email protected]

Sales // John Philippe [email protected]

http://www.og6666.com

About theTopics in this Issu

“Our aim for The Monthly Betmagazine to create an avenuewhere you, our valued partner, couldnd more information about theindustry as well as in-depth featureson different issues and topics thatsurround our industry. Oriental Game believes that sharing new informationand knowledge is integral to thegrowth of our companies together.

As we continue to provide moreissues in the succeeding months,please continue to support ourinitiatives and I assure you that youwould truly nd our magazine aworthwhile read.”

-Richard, Marketing-Richard,

“In this issue of The Monthlfocus is on t he recent develon third-party payments ancryptocurrencies. Game paymethods are an integral pargambling, so we took a closat what is happening aroundand Europe regarding this aTopics include China’s emea Bitcoin powerhouse, Euroto regulate Bitcoin, China’sof overseas withdrawal limi

UnionPay users, and Bitcoiafter Paypal’s exit from TaiwCompleting this month’s puare the iGaming news and ffrom both Asia and Europe

Bitcoin

Paypal

The thrust of The Monthly Bbring to you relevant conteniGaming, as well as updatesOriental Game that we’d lovshare with you. I personallyeverything featured in this eissue will help you gain insiabout the ever-growing induonline gambling. I also hopecontinue patronizing our puand, of course, Oriental Gam

-Ivan, Writer/Editor-Ivan,

CONTENTS // THIS ISSUE...

ASIA i-GAMING

THIRD-PARTY PAYMENTS/CRYPTOCURRENCY

EUROPE iGAMING

4 Thailand and Its Proposal to Set Up anInternet Firewall Similar to China

8 About the Live Casino Industry Crazeand Its Rise in the Asian Market

12 Recent Illegal GamblingCrackdowns Across Asia

17 China Sets UnionPay Overseas CashWithdrawal Limits

19 China Is Dominating the BitcoinMarket, Slowly but Surely

22 PayPal Exits Taiwan; Gives Bitcoina Chance to Prosper

PayPal

25 Europe Could Embrace Bitcoin,Cryptocurrency

29 In 2019, One in 10 Adults Will BeGambling Online

2019

31 The Fast Increase in Gamblingin the Czech Republic

34 Not Just an Online PaymentProcessor: Skrill’s Venture inGambling Affiliate Marketing

Skrill

http://www.orientalgame.com/http://www.orientalgame.com/


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November 2015 NovemThailand and Its Proposal to Set Up an Internet Firewall Similar to China | ASIA iGAMING Thailand and Its Proposal to Set Up an Internet Firewall Similar to China | ASIA iGAMING

Thailand and Its Proposal to Set Upan Internet Firewall Similar to China

China’s “Great Firewall” is

urely complicated givents intricacies, but it isot possible that otherountries may replicate it.

ver the past few years, Thailand has not beentimid when it comes to banning websites

that they deem problematic. Before 2006, 34,411websites were blocked by the Royal Thai Police, theCommunications Authority of Thailand, andthe Ministry of Information and CommunicationTechnology or MICT. A large chunk of these sitesinvolved pornography at about 60%, while 11% werethreats to national security, including criticisms to thecountry’s leaders plus the royal family. Only 2% wereillegal gambling sites. During this time, Thailand onlyhad a single international Internet gateway.

2006

34411 60% 11%

2%

By 2006, the country loosened its grip on Internettraffic, which led to over a hundred ISPs that wereestablished there. These Internet service providersare now channeling traffic through ten internationalgateways. Despite this, the country continued to policeInternet content, but not as systematic as that of China.

2006

10

About China’s“Great Firewall”

Internet censorship in mainlandChina is very muchwell-known throughout theworld, so much so that the mediadubbed the various legislationsand projects that the governmentinitiated as the “Great Firewall ofChina.” Controlled by the ChineseCommunist Party (CCP), it isthe most advanced and mostextensive Internet censorshipregime in the world. Basically, ifthe content of a certain websiteis critical to the government or goagainst thepolicies implemented by the CCP, then it is highly

O likely that that website won’t be seen when searchedusing Chinese ISPs. Indeed, websites that containany “harmful information” such as politically andsocially-sensitive topics or “harmful activities” such gambling and promoting sexually suggestive materiaare prohibited.

‘’

What China does is not just block certain websitesindividually; they use techniques to scan URLs andweb page content to lter keywords that are blacklistlike, say, “Tiananmen” or “democracy.” Generally, itcontrols the Internet gateways where traffic travelsbetween China and the rest of the Internet using a

combination of rewalls and proxy servers stationedthe gateways. It is from these gateways that Internettraffic is analyzed and manipulated.

Another “GreaFirewa

China’s “Great Firewall” iscomplicated given its intric

but it is not possible thatcountries may replicat

fact, Thailand may possiin on the act after recent rerevealed that the present mi

government is layingthe political foundati

would radically restrucown Internet. In a nutshel

master plan would allow oto closely monitor alm

digital traffic going in andthe


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China’s own rewall may beintimidating, but for all weknow, it may not be that perfectas the thought of blocking orcensoring just about everythingis, to say the least, challenging.There has been success inbypassing the rewall with allthe VPNs, and it is no surprisethat Thailand’s own version of itcan be bypassed, too, thus thepossibility of creating even moreopportunities for individualsto collect wagers online frominterested bettors.

vpn

It is worth noting, however, thateven though Thailand prohibits any

form of gambling (except the nationallottery and horserace betting), it is

still a big business there.

Thailand and Its Proposal to Set Up an Internet Firewall Similar to China | ASIA iGAMING Thailand and Its Proposal to Set Up an Internet Firewall Similar to China | ASIA iGAMING

About 37 percent of Thais are Internet users. Wthe plan to restrict the country’s Internet trafficthrough a single gateway now in the open, mosof the netizens fear that the military governmenwill easily control what they see and what theycannot see.

37

he military junta, ever since taking over Thailand in14, has since been active in blocking hundreds ofes they consider illegal; even Facebook and Googleer e not spared for a time. Now, high ranking militaryfficials are intent to revert to the single Internetteway setup that was previously monopolized bye government pre-2006. That would mean that thevernment will no longer need to request ISPs toock a site or issue court orders.

2014facebook google

2006

egativeactions

f course, the Thais,hich have beneted one fast Internet speedsd turning the countryto a regional IT hub,sponded negatively one military government’san. When this news came out, around 72,000 peopled signed a Change.org petition calling on the militarynta to cancel the proposal. Critics have also said thate proposal may have horrible repercussions. Not onlyill this further increase censorship, but it may alsoave the country’s status as an IT hub vulnerable inse the single gateway fails at some point.

72000

an attempt to allay the public’s growing concern overis possibility, the head of Thailand’s MICT, Uttamaavanayana, said that the proposal is not designedspy on Internet traffic ow, but to “serve basiconomic needs.” This is in stark contrast to the recentbinet statement saying that narrowing the gateway

to just one “will be a tool to control inappropriatewebsites and the inbound of information and newsfrom overseas to Thailand.” This is obvious ly echoingChina’s thrust in Internet censorship.

UttamaSavanayana,

What this meansfor onlinegambling inThailand

Thailand’s plan wouldmean that among otherthings, online gamblingmay be immenselyaffected. It is worth noting,however, that even thoughThailand prohibits anyform of gambling (except

the national lottery andhorserace betting), it is still a big business there.In fact, three-fths of Thais engage in poker, sportsbetting, or some form of gambling.

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Pushing through with the plan would mean Thailand isreally serious in crippling gambling that they considerillegal. Then again, there is no guarantee that anygambling activities will be fully eradicated, let alonethe government discourage people from gambling

online or otherwise. Indeed, building a rewall like thatof China involves a lot of technical know-how. Sure,Thailand, being one of Southeast Asia’s prominent IThub, can pull it off, but even if the single gateway isalready established, it will still have kinks that need tobe ironed out.

“

“


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NoveNovember 2015 About the Live Casino Industry Craze and Its Rise in the Asian Market | ASIA iGAMINGAbout the Live Casino Industry Craze and Its Rise in the Asian Market | ASIA iGAMING

About the Live Casino Industry Crazend Its Rise in the Asian Market

ty of Macau: the focal point of Asia’s multi-billion dollar gambling industry :

akati City, Philippines:e of the top live casino hotbeds in Asia

:

A typical live casino studio |

As technological advancements,particularly Internet connectivity acomputing, became necessities in

this fast-paced world, the combinatiof gambling and these innovation

became inevitable.

a typical live casino setting, whether it is in a realsino or in a studio, a dealer manning, for example, accarat table , is facing a static camera, which recordse action in real time. The live footage is then fed toe servers and then streamed over the Internet goingthe players’ desktops or mobile phones. The cardsing dealt are also fed to the servers after being read

y a visual recognition device.

In the perspective of the players, they are able to placetheir bets with the aid of the interface found on theirdesktop or mobile phone screens. The interfaces alsoallow them to read the instructions on how to playthe casino games, as well as check their respectiveaccount balance and view their betting history ofthe games they previously played. The softwarebeing used basically controls the whole game, as itcalculates the resulting payouts and promptly updatesthe information found on the players’ screen interface.

This is what basically happens in a live casino. Firstdeveloped in Europe, it is one of the fastest-growingaspects of online gambling. So popular is this industrythat it made waves in the Asian continent not long

after.

Live casino industry in Asia: aphenomenon

---

Whenever we think of gambling in Asia, we think rstof Macau, a former Portuguese colony and China’sspecial administrative region. It is deemed the focalpoint of Asia’s multi-billion dollar gambling industry; sobig that it overtook Las Vegas, Nevada in the UnitedStates in terms of gross gaming revenue. Sure, thegrandiose brick-and-mortar casinos in Macau, as wellas the vast gaming oors and numerous attractionsthere is what makes the Asian gambling a revenue-generating industry. But the Asian gambling industryis not only restricted to these establishments; eventhe phenomenon of live casinos and its accompanyingtechnology is a big reason for its growth.

But why is it a phenomenon in the rst place? It isworth mentioning rst the no.1 gambling market inAsia: China. With the exception of Macau and thestate-run lotteries, the mainland strictly prohibits anyform of gambling. The Chinese, given their willingnto gamble, began looking elsewhere. Before, theyhad no other choice but to visit Macau, as well asother countries in the world where brick-and-mortargambling is welcomed, even it would mean wastingmoney just for travel alone.

But as technological advancements, particularlyInternet connectivity and computing, becamenecessities in this fast-paced world, the combination

of gambling and these innovations became inevitabWhat branched out from the whole scope ofAsian gambling is an all-new facet; an alternativewhere players can bet at the comfort of their ownhomes without ever going to Macau or any casinoestablishment there or outside the mainland. Lateron, smartphones became the “thing,” which made itpossible for these online players to gamble at any timand any place. Thus, the live casino industry was bo

“

https://www.youtube.com/watch?v=tgxxmg9M1fchttps://www.youtube.com/watch?v=tgxxmg9M1fc


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brief history of online gambling,ve dealer casinos in both Europend Asia

o better understand live casinos and online gamblinga whole, it worth noting the place where it all

arted—Europe. In 1996, the Isle of Man-basedftware development company Microgamingunched its rst online casino. Since then,icrogaming, along with other similar companies

ke Playtech and Evolution Gaming, began to shapee live casino industry to what it is today, throughnovations that go with the advances in technology

articularly in Internet speeds. Eventually, in 2003,aytech rolled out its rst live dealer solution, which isen distributed to their suppliers (that is, online casinoebsites). It was the rst time that online gamblerson’t just play with desktops in-front of them. They areaying in-front of their desktops but with live dealersaction, all in real time.

1996 ,Microgaming

icrogaming Playtechvolution Gaming

2003aytech

s the European live casino market began its evolution,e Asian market for live casinos began to ourish.fact, it followed behind Europe by almost three

ears for technological advances. In 1998, Betworkstablished itself as the rst Asian online casino, but itasn’t until 2004 when EntwineTech (a.k.a. EA) blazede trail in the live dealer casino market. Since then,her similar companies such as SunCity, Asia Gaming,

nd HoGaming began to enter the industry. Just like in

urope, they were able to come up with innovationsat appealed to the gambling market which is mainlyomposed of the Chinese. The companies may havepied improvements from the European market, butey were able to take into account user experience,big key in expanding online gambling, especiallyve casinos, in Asia. For instance, the squeeze cardnction, as well as robotic dealers, are just two ofe many advances that the Asian market pioneered,hich the European market did not have.

31998 Betworks2004 EntwineTech

SunCity Asia GamingHoGaming

Growth to other parts of Asia

To cater to the Chinese and the Asian market as awhole, companies providing live dealer solutions havetaken their operations to regions where gambling islegalized. The Philippines, for one, is one of the mostliberal gambling laws in the world and is considered oneof the hotbeds for live casinos. Online gambling is fullylegal in the Philippines, with the First Cagayan Leisureand Resorts Corporation (FCLRC) the chief regulator oflive casinos targeting foreign punters across Asia. Thecountry is home to numerous casino studio locationsthat are mostly situated in one of Manila’s suburbs:Makati City. Among these companies are Playtech,which has an Asian studio apart from the Europeanstudio, and the Philippine-based EA or EntwineTech,

Opus Gaming, and Asia Gaming, among others.

First CagayanLeisure and Resorts Corporation FCLRC

makatiPlaytech

makati EA EntwineTech , OpusGaming, and Asia Gaming

What’s next for the live dealercasino industry in Asia?

?

Things are denitely looking up for this growingfacet of online gambling in Asia. Nowadays, third-

party payment processors, which continue to attractgamblers who want to move their bets via electronicmeans in the safest and most secure manner, isgrowing at a fast rate; a testament to the rise of livedealer casinos and online gambling as a whole.

What will also bring about the constant rise in livedealer casinos within Asia is the commercialization ofmobile technology. Now, people are connected to theInternet not just through desktops, but also throughmobile phones. Incorporating this and the industrywould surely boost in revenue. Online gamblers areable to do place their bets anytime and everywhere, aslong as they have stable Internet connection.

Also, because of the stiff competition within theindustry, companies that provide live dealer solutioncome up with ways to bring in more online gamblerIndeed, they employ different methods in theirmarketing efforts, such as bringing in female non-dealers to provide entertainment for the players (theywere trained to deal!) and bonuses, promotions, andthe like. Above all, the key for the industry to remaia phenomenon in the Asian market is for it to keep uwith Europe in terms of technology and combine theneeds to the market in order to create a truly uniqueproduct offering.

,

Surely, the Asian live casino industry will continue tprosper. It may face challenges along the way, butwith more gamblers across the continent taking partthis, the industry has never been as robust and morepopular as it was when it rst came to be.

About the Live Casino Industry Craze and Its Rise in the Asian Market | ASIA iGAMINGAbout the Live Casino Industry Craze and Its Rise in the Asian Market | ASIA iGAMING

Live casino game displays are a commonsight inside the studio.


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NoveNovember 2015 Recent Illegal Gambling Crackdowns Across Asia | ASIA iGAMING

Recent Illegal Gambling CrackdownsAcross Asia

January 20152015 1

A call center in Makati City in the Philippines wasraided by the operatives of the Bureau of Immigration(BI). The crackdown resulted in the arrest of 73foreigners from over eight countries, all of whomwere taken to custody for lack of valid work visas.The call center in question was being operated bySuper 7 Ventures, a company which, according to an

anonymous tipster, was accused of operating a real-money online gambling site cloaked as a call center onbehalf of a “syndicate.”

Makati 73

Super 7

Recent Illegal Gambling Crackdowns Across Asia | ASIA iGAMING

February-August 20152015-2 8

How can we not include Bo Wang on this timeline?He was accused of heading a PHP91 billion crimesyndicate in the mainland via the Manila-based Skybetnetwork gambling company. This all started when thesame BI in the Philippines arrested him at the mainairport in Manila February 5 after ying in the countryfrom Malaysia. He wasfound to possess a cancelledpassport and his name was onthe blacklist of the bureau. Amonth later, while Wang wasin detention in the country, theChinese consulate informedthe BI that he is wanted for

heading an “illegal onlinegambling opera tion.” It waslater revealed by the Chineseembassy that he was fugitive wanted by the Interpoland the government of China for illegal gambling andmoney laundering. By August, the Secretary of Justiceordered Bo Wang’s deportation to his home country.

Skybet 9102 5

8

June 20152015 6

Six South Koreans were arrested in a raid on illegalonline gambling operations in Thailand. The policearrested the men while allegedly receiving betson overseas football matches. Seized inside theapartment where they were caught red-handed weremobile phones, computers, bank books, and otherelectronic devices. Actually, this was just one of themany crackdowns that the Thai authorities carried outagainst expatriate South Koreans living in the country.

6

July 220

Another online call center raid o

around this time in,the Philippin

number of people arthat time, howeve

staggering: mo200 foreign nationa

what happened in MCity months prbust, which involv

authorities rounding up the units at the Newport Ccomplex in Pasay City, found that the nationals w

found to have no proper documents and the requirwork permits to perform work in the Philipp

Makati200 Pasay

August 18, 20152015-8-18

The “clean the Internet” initiative that the Chinesegovernment announced a month prior was againa success after the Chinese police announced thedetentions of over 15,000 individuals. The detentiowere the result of crimes that puts into jeopardyInternet security. Indeed, the police investigated66,000 websites, exposing 7,400 cases of“cybercrime” where the sites promoted “illegal anharmful information” such as pornography, gamblrearms, and explosives. This is, of course, the“Great Firewall” of China doing work.

he year 2015 saw local Asian news outletsporting about illegal gambling crackdownsat have resulted in the arrest andosecution of thousands, if not hundreds,individuals. The following is a timeline of

vents involving local authorities from acrosssia successfully carrying out operations to

urb illegal online gambling starting earlieris year.


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November 2015 Novem

‘ ‘15000

66000 7400

ugust 20, 2015015-8-20

orty-eight foreigners suspected of operating an illegalnline gambling den were detained after Indonesianuthorities raided a tourist resort in the island of Bali.hirty-ve men and 13 women from China and Taiwanere rounded up, some even trying to escape theolice. This is expected for a country—with 90% of the

opulations practicing Islam—that strictly prohibits anyrm of gambling.

8 3513

90%

August 23, 20152015-8-23

South Korean authorities have broken up an Internetgambling operation hiding under the guise of an onlineshopping network, the Korea Times reported. At leastfour individuals were arrested in the bust. The illegalgambling ring involved 30 different sites taking betsfrom Korean customers, all of which operated fromwithin China to avoid detection by the authorities.Meanwhile, in Chiang Mai in Thailand, a group ofSouth Korean expatriates running an illegal gamblingoperation were arrested by immigration authorities.The leader of the group said that they chose to operatein Thailand mainly because of the lax prosecutions

against online gambling, as compared to his homecountry.


430

September 1, 20152015-9-1

Fifty-six people in the Socialist Republic of Vietnamwere sentenced by the People’s Court in Ho Chi MinhCity to prison time ranging from nine months to eightyears for their alleged involvement in illegal onlinegambling. Eight others were also tasked to pay a ne

between VND 30 and 50 million. The gambling ringoperated ve years ago through 188Bet, wherein themembers disguised themselves as telecom equipmentcompany employees.

569 8 83000-5000 5188bet

September 8, 20152015-9-8

Days after the abovementioned, Vietnameseauthorities were once again successful in entrappingindividuals involved in illegal gambling. Twenty-eightpeople were charged for engaging in an onlinegambling ring that collected over VND 301 billion ($13million) in bet money. The alleged leader of the groupPham Huy Toan reportedly possessed almost 60 bankaccounts that he used to obtain said amount of moneyfrom local players, including doctors, students, andeven government officials.

2015-9-8283010 1300

Pham Huy Toan 60


What can be seen in this timelineof events?

Based on the events that happened over the past fewmonths, one can notice that there common themesoccurring across the continent. Groups of individuaare actually moving to another country with lenientonline gambling-related laws and regulations, and ththey will set up their operations there with the hopesof targeting bettors back home. Sometimes, theyrisk themselves of getting caught, especially if theypossess tourist visas instead of working visas. Anottheme found in this timeline is the fact that there arestill citizens that continuously illegally operate web

despite the fact that their respective countries havestrict regulations against any form of gambling, notto mention harsh penalties. Not to be forgotten,however, is the effort of the authorities to carry outthe operations and successful detain the individualsinvolved. Apart from the local police doing the bustagainst their fellow citizens, there is also cooperatiobetween countries where foreigners charged withillegal gambling are deported as evidenced by the BWang situation mentioned above.


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NovChina Sets UnionPay Overseas Cash Withdrawal Limits | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY16

Deterring money laundering and decreasing capitaloutow are just some of the reasons why China’sState Administration for Foreign Exchange or SAFEdecided to tighten management of cross-bordercash withdrawals. Just before September ended, theChinese foreign exchange regulator announced newannual limits on automated teller machine (ATM) cashwithdrawals outside of the country using the UnionPayelectronic transfer system.

SAFE9

ATM

The limits, whichUnionPay said aimedat “further enhancingthe work on anti-moneylaundering and theprevention of nancialrisks,” will take effect Janua ry 1, 2016, wherein thebank’s card holders will now be only be allowedto withdraw up to RMB100,000 in overseas cashannually. The SAFE, however, did not wait for 2016;from October 1 until the end of the year, each cardmay be used to withdraw no more than RMB50,000.The limits are on top of the existing policy which setsdaily withdrawal limits at RMB10,000 per ATM card, orequivalent amount in foreign currency.

2016-1-110 10-1

51

According to SAFE, violators will be added to a walist and will be subsequently be prevented frommaking additional cash withdrawals outside China.Apart from Chinese UnionPay card holders, the annlimits will also affect those with Visa and MasterCathat were issued in the mainland.

SAFE

VisaMasterCard

SAFE has implempolicies to urge consto use UnionPay carother bank cards for

border transaction2008. But a spok

from the said goveragency said that

monitoring resultthat UnionPay cardh

overseas have withdrawn strangely large amountscash with high frequency, something that authorit

have warned a

SAFE 2008

China Sets UnionPay Overseas CashWithdrawal Limits

http://www.orientalgame.com/


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November 2015 NovemChina Sets UnionPay Overseas Cash Withdrawal Limits | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY

mplications in the gambling arena

f course, the regulatory changes in the use ofnionPay ATM cards have repercussions in thembling market, regardless if it is land-basedonline. Indeed, many Chinese punters useeir UnionPay cards (or Chinese-issued Visas orasterCards) to access their cash for play not just inacau casinos, but also in other places around Asiahere gambling is fully regulated.

ATM

nancial analysts have varying opinions with regardse move. On one hand, UBS Securities Asia Ltd saidat there will be “no material direct impact” on the

acau gambling market, because using the ATMs forsh withdrawals is just one of the sources of cashr most gamblers. But then, it cautioned that theeasures are likely to cause “sentiment overhang”

mong mainland consumers using the card.

UBSATM

On the other hand, brokerage rm Bernstein Researchindicated that the new regulations will cause“incremental headwind” to Macau’s gross gamingrevenue (GGR), especially the “premium mass”gambling market. This refers to the group of playerswho are considered highly valuable among casinooperators and are oftentimes able to place cash betsgreater than those who bet in small amounts or the“grind mass” players.

Bernstein Research

According to the brokerage rm, the premium massmarket are those who utilize, among others, UnionPaycards to withdraw cash for play in Macau casinos.Although many of them have multiple cards under theirnames, these gamblers may nd their access to cashmore limited once the limits are implemented next year.

17 18

China Is Dominating the Bitcoin Market,Slowly but Surely

Currently, a substantial share of transactions involvicryptocurrencies comes from China. Reports evensuggest that the whole Bitcoin market in the countryis made up of about 80 percent of Bitcoin and otherBitcoin alternative (altcoin) transactions. Indeed, anchanges happening within the Chinese market canhave repercussions on a global scale; the same can bsaid when it comes to cryptocurrencies.

80%

China Is Domina ng the Bitcoin Market, Slowly but Surely | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY

China as we know it is no longer the so-called sleepingdragon; right now, it has surpassed the United Statesas the largest economy in the world. That distinctionwon’t be possible without the country’s bountifulresources, a vast workforce, and technologicaladvances. It is not anymore surprising that China iscompeting with the rest of the world. In fact, over therecent years, China has signicantly inuenced worldmarket trends, with impact affecting over a plethora ofindustries, including the market involving Bitcoin.


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NovNovember 2015 China Is Domina ng the Bitcoin Market, Slowly but Surely | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY19

can be remembered that last August, the People’sank of China (PBOC) devalued the yuan by 1.9rcent in an effort to make its exchange rate morearket-oriented. This led to investors exchanging their

uan (formally, the renminbi or RMB) to Bitcoin as aay of rescuing the equivalent value of the amount.his reaction is what led to the shift in the Bitcoin’sice, not to mention a major movement in the graphvolving the at and the digital currencies. Apart fromis, analysts saw that these investors are exchangingeir cash into Bitcoin, and then exchange whatevertcoin they have back to RMB or USD later, dependinghow the digital currency performs in the market.

ny uptick will make the investors convert their BitcoinRMB, whereas any decrease in the price gives theme option to convert the same to the USD instead.

8 1.9%

here is no doubt that the yuan devaluation sentpples throughout the entire global market, but it justoved China just how strong it is. This was apparentthe effects felt throughout the entire Bitcoin market

herein Chinese citizens who use Bitcoin are greatlyable for advancing the digital currency into reachingobjectives.

We surely get the fact that China is instrumental inraising the bar on the utilization of the Bitcoin and inthe aspect of digital currency as a whole. This puts intolight, therefore, the question of whether to regulatecryptocurrencies in the c ountry or not. Leon Li, theCEO of Huobi, one of China’s top Bitcoin exchanges,argued that regulating the Bitcoin “should beencouraged and supported strongly,” as the ChineseBitcoin market is the largest in the world in terms ofBitcoin trading and mining, something that can displaygreat potential.

CEO Leon Li

Even though the Bitcoin is restricted in the mainland(thanks to the PBOC), Huobi and all the other Bitcoinexchanges such as OKcoin and BtcChina continue toperform trade transactions. While the Bitcoin marketin China remains strong, the question of whetheror not Bitcoin gambling will prosper still needs tobe answered.

China’s status as a world economic superpower can attributed to a lot of things, including the growth of Bitcoin industry. The controversies surrounding Bitcmight still be lingering, but the opportunities for usithis digital currency is already apparent, especially tonline gambling using Bitcoin is possible. Denitelthere is a future for the Bitcoin gambling market inChina, given the technology available for it to happewithout crossing the line of being illegal. Yet only timwill tell for this really happen.

‘ ’

huobiokcoin btcchina

As we all know, China is strict when it comes togambling, with the exception, of course, of state-runlotteries and the regulated gambling happening in thespecial administrative region of Macau. But given thelatter’s gross gaming revenue being generated fromboth land-based and online gambling, there is denitelyan opportunity for Bitcoin gambling, especially in aBitcoin market hub as big as China.

While the Bitcoin gambling industry is far fromgetting developed into its initial stages, one can justimagine how the whole sector will ourish if thegovernment decides to fully regulate it, let alone othercryptocurrencies. Though restricted, gambling withthe use of Bitcoin can provide the best solution thatwill benet not just the players, but also the operators.For one thing, players with Bitcoins to use ca nanonymously place their bets online. Plus, transactionsare hassle-free and easy. And, with the numeroustechnologies available, buying cryptocurrency (orBitcoin for that matter) and then exchanging them forRMB, USD, or any other at currency can be done.Truly, Bitcoin will drastically change the gamblingmarket, making it an industry that is even moretransparent, protable, and convenient for players.

While the Bitcoin market inChina remains strong, thequestion of whether or not

Bitcoin gambling will prosperstill needs to be answered.

China Is Domina ng the Bitcoin Market, Slowly but Surely | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY Nov

“


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November 2015 NovemPayPal Exits Taiwan; Gives Bitcoin a Chance to Prosper | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY

ver since it broke away from its parent companyBay, PayPal, one of the world’s top online paymentrvices, has been announcing several changes thatn be described as “questionable.” Among theseanges targeted customers from Taiwan, in which thempany announced earlier last month that they willase supporting domestic transactions there.

yPalBay PayPal

he following is the company’s notice informingiwanese users of the change:

“Dear customers,“

We’ll be streamlining our services in Taiwan,and our system will be enhanced to ensure thatdomestic commercial payments will not beprocessed, in compliance with local laws andregulations.

These changes will take effect from September 21,2015, and you will not be able to use your PayPalaccount registered in Taiwan to send payments to,or receive payments from, other PayPal accountsregistered in Taiwan.

2015-9-21PayPal

Please note that you will still be able to receivepayments from international sales and trading, aswell as make payments for purchases of goods orservices from overseas merchants.

We sincerely apologize in advance for anyinconvenience this may cause. We will continue toenhance our platform and improve our services toserve your needs.”

”

PayPal Exits Taiwan; Gives Bitcoina Chance to ProsperPayPal

The phrase “in compliance with local laws andregulations” is not unexpected, considering the factthat there have been changes in Taiwan in terms ofits laws and regulations regarding online payments.Case in point: last year, Taiwan presented an e-paymentdraft law that would help facilitate virtual paymentsacross the country. The catch, however, is that the newregulation did not include nancial products purchase.It was apparent that the law does not permit third-party payment deposit accounts for buying nancialmanagement items.

Thus the announcement from PayPal. Any Taiwaneswith a registered PayPal account are now unable toperform domestic transactions with other PayPalaccount users there. Overseas transactions remainopen, though.

PayPalPayPal

Now that PayPal is out of Taiwan, it left its users andonline merchants staring blankly and thinking, “whanow?” Those who heavily rely on the online peer-to-peer service are obviously left with no other recoursbut to search for alternatives. Luckily for them, thevirtual currency Bitcoin is one of these options, and is ready to provide Taiwanese PayPal customers withpossible solution for the payment requirements.

PayPal Exits Taiwan; Gives Bitcoin a Chance to Prosper | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY


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November 2015 Novem

PayPal

yPal

ue enough, the island-country is just one of the fewaces in the world where virtual currency can beught over-the-counter. In July, Taiwan startupmpany Maicoin, a one-stop Bitcoin platformoviding trading and payment services, enabled-store purchases of the virtual currency in over,000 convenience stores there. This made Bitcoinen more accessible; aside from over-the-counter

urchases, one can also use the in-store paymentrminal just by placing an order through the Maicoinobile app.

7Maicoin

10000Maicoin

p

yPal’s Taiwan pullout means that Bitcoin can nowab the opportunity to be recognized and increase itspularity in the country, thanks to Maicoin and all the

her Bitcoin exchanges available in the country. It ise Bitcoin’s potential to be used as an alternative forer-to-peer transactions that makes it possible for itd all the other virtual currencies out there to prosperother parts of Asia. The main caveat in all of this,wever, is that regulations for virtual currencies liketcoin have not yet been fully established, causingon-to-be users and investors to be extra careful.

his limits the full potential of adopting Bitcoin, or anyrtual currency for that matter, into the Asian market.

PayPalMaicoin

Despite the lack of regulations, the use of Bitcoinmay still likely ourish now that PayPal is gone inTaiwan, and one industry that can benet from this isonline gambling. Right now, it is illegal to engage inonline gambling in the country, but that has not stopbettors from doing so. For all we know, there may bepunters who use PayPal as their third-party paymentprovider for their gambling funds. Given the situation,Bitcoin is a tting replacement for the online paymentsprocessor, especially since Bitcoin gambling is gainingsteam in terms of popularity in Asia.

PayPal

PayPalPayPal

The use of Bitcoin maystill likely flourish now that

PayPal is gone in Taiwan, andone industry that can benefitfrom this is online gambling.

PayPal

PayPal Exits Taiwan; Gives Bitcoin a Chance to Prosper | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY

Europe Could EmbraceBitcoin, Cryptocurrency

hile still a relative unknown to most people, it isslowly gaining a head of steam in the nancial

ecosystem. Yet since it was introduced in 2009, theBitcoin, while it has great potential, is still shroudedwith mystery. No wonder it is considered a “crypto”currency, given the fact that it uses cryptography tocontrol its creation and transfer.

2009W

Europe Could Embrace Bitcoin, Cryptocurrency | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY

“

“


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November 2015 Novem

hat makes this electronic currency warranted of“crypto” tag is that (1) no public entity controls it,

aking it an unregulated virtual currency, (2) it is baseda peer-to-peer network that allows an individual to

onymously hold and transfer, and (3) it depends on aecic exchange rate based on the market conditionsd not linked to a traditional (at) currency.

1(2)(3)

ith these Bitcoin characteristics come the risks ofing it, especially within the scope of online gamblingEurope. For one, those who oppose the use oftcoin raise the issue of a likely breach of regulationsncerning anti-money laundering. Europeanuntries that regulate land-based and online gamblingve specic rules for such, wherein a transactiondeemed dubious if it involves withdrawing orpositing money in a gaming account through modespayment not held in the game account holder’sme. Another issue is that of the traceability oftcoin transfers as opposed to the typical transactionsing at money. With no central authority to monitortcoin’s movement and with no banks, nancialstitutions, or any regulating entity to manage it wouldean a great concern among authorities investigating

uestionable Bitcoin gambling transactions.

Accepting Bitcoin as a valid payment method is stilluncertain in the realm of online gambling in Europe,although there have been instances where countrieswith denite gambling regulations welcomed the idea.For example, online casino Vera&John became the rstoperator licensed in Malta to accept Bitcoin, only to bediscontinued by the country’s gambling regulator.

Bitcoin

Vera&John

Despite this, there is still a possibility that regulatorsfrom both the nance and gambling sectors mayconsider imposing a framework that will duly regulateBitcoin, as well as other existing cryptocurrencies, asa way of protecting individuals trading using them andeliminating the risks that limit them to harness theirtrue potential. Fortunately, there is progress.

The European BankingFederation (EBF), […] is calling

for governments and businessesto work together to come up

with a framework for regulatingBitcoin and possibly other

cryptocurrencies.

“ EBF[...]

”

Europe Could Embrace Bitcoin, Cryptocurrency | THIRD-PARTY PAYMENTS/CRYPTOCURRENCYEurope Could Embrace Bitcoin, Cryptocurrency | THIRD-PARTY PAYMENTS/CRYPTOCURRENCY

In a recent development, the European BankingFederation (EBF), a trade group representing 32national banking associations and 4,500+ banksthroughout the continent, is calling for governmentsand businesses to work together to come upwith a framework for regulating Bitcoin andpossibly other cryptocurrencies. The EBF providedrecommendations to policymakers, such as furtherresearch into the technology surrounding Bitcoin andcontinuous evaluations of rulemaking. But the mostnotable of the group’s proposals is the applicationof an all-encompassing framework for regulatingcryptocurrencies based on anti-money laundering lawsalready in place in certain European countries.

EBF , 324,500

EBF

Also of note in the EBF’s recommendations is theneed to conduct public and private assessment ofblockchain technologies, recognizing their capabilityto reduce costs, secure consumer spending andintroduce greater liquidity to the market. Thoughregulating cryptocurrencies to the same level as that oftraditional currency transactions is being called upon,the EBF noted that doing so should allow room forinnovation.

EBF blockchain

EBF

Still, the EBF, despite having no strict stance onBitcoin, said that its future remains unclear, “given tit was built as an experiment.” But one can’t help buthink of the simple thought of implementing concretregulations for Bitcoin and other cryptocurrencies.That, in itself a development that would help furthernot just the nancial sphere in the continent, butalso the aspect of online gambling. If there comes atime where a handful of European nations considerincorporating the Bitcoin within their existing gambregulations, just imagine the limitless potential for bthe cryptocurrency and the industry.

EBF

“


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Nov

In 2019, One in 10 Adults Will BeGambling Online2019

ccording to the National Center for ResponsibleGaming, online gambling is deemed the fastest

growing form of gambling in the world. It is easy to saywhy this is so; advancements in technology, especiallywith the populace now connected to the Internetalmost every day, allow for punters to convenientlyplace their bets or engage in some form of gamblingusing either desktops or mobile devices. With Asia andEurope dominating in the said market, thereis no wonder that things are looking up for onlinegambling.

In fact, a new study suggests that the sector is set toexplode over the next ve years. A new report fromUK-based market analysis and research rm JuniperResearch revealed that one in 10 adults all over theworld are likely to engage in some form of onlinegambling by 2019, with half of the adults involvedcoming from the United Kingdom and Italy.

A

In 2019, One in 10 Adults Will Be Gambling Online | EUROPE iGAMING

5Juniper Research

2019 1/10

So just imagine: a tenth of the world’s population wplace a bet through the Internet by that time! Also,half of 10 percent come from two European countrieknown for having one of the most liberal gamblinglaws in the world. Quite a bold prediction, but this istill possible considering that there are two things ththe research rm believes will play a huge part for tsaid projections. The rst is the transition of lotteryticket sale from terminals or outlets to mobile devicwhile the second one is the “increasing liberalizatioof online markets across Europe and the US, drivingusage of casino and sportsbook services.”


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NovNovember 2015 In 2019, One in 10 Adults Will Be Gambling Online | EUROPE iGAMING

One in 10 adults all over the worldare likely to engage in some form ofonline gambling by 2019, with half of

the adults involved coming from theUnited Kingdom and Italy.

1/10

The Fast Increase in Gambling inthe Czech Republic

When it comes to gambling in the European continent,

countries such as the Italy, Malta, and the UnitedKingdom are among those that come into mind giventheir clear and denitive legislations for it. But then,there are a vast majority of countries in Europe thatare not so much like them; these are considered “greymarkets.” This means that the re are some nations t hathave either vague legislations for a certain avenue ingambling or none at all. This could also mean blockingone form of gambling but allowing another, or allowinglocally licensed operators but not international ones.

” ”

The Fast Increase in Gambling in the Czech Republic| EUROPE iGAMING

side from the abovementioned projections, Juniperesearch also took note of the current movements ine realm of gambling within the scope of the Unitedates and Europe. Basically, the rm’s research studyvealed that the only US states where gambling isgulated—Delaware, Nevada, and New Jersey—sawdramatic uplift in revenues over the past 2 years.”ost of the US states still consider gambling illegal,

ut offshore sites that accept bets in US dollars likeopBet and Bovada continue to bring in much traffic.hus, the rm believes that in a realistic sense, moreates may likely legalize intrastate online gamblingth the goal of generating tax revenues.

Juniper Research

2

” TopBet Bovada

Meanwhile, on the other side of the Atlantic Ocean,the rm, while recognizing the probable harmonizationof national gambling policies with the enactment of thelatest EU directive on AML (anti-money laundering),cautioned that the ongoing uncertainty with regardsto the intricate licensing procedures had resulted inmany notable operators exiting European countries.For instance, the rst few months of the year saw theexit of Playtech and Mansion from the German market,as well as the exit of William Hill from the Portuguesemarket due to the new tax increase in sports betting.This, Juniper deems, will result in customers switchingfrom regulated to unregulated casino operators.

Playtech and Mansion WilliamHill Juniper

“


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NovNovember 2015 The Fast Increase in Gambling in the Czech Republic| EUROPE iGAMING The Fast Increase in Gambling in the Czech Republic| EUROPE iGAMING

ne such European grey market is the Czech Republic.ne of the most popular gambling destinations ine continent, it is home to over 100 casinos in citiesover the country, most of which are situated in its

pital city Prague. Per capita, it has the more land-sed gaming establishments than any Europeanuntry. Also, it is home to countless gamingachines, mostly slots, in almost every establishment.

100

egal state of gambling in the

zech Republic

o immensely popular is gambling in the Czechepublic that the industry is worth well over a hundredllion korunas (CZK). In 2014, in fact, the Czechs spentver CZK138 billion on gambling, with an estimatedZK30 billion in earnings. This applies for both onlined offline gambling. Yet even if the country’s gamblingvenue is up thanks to land-based casinos and slotachines, it is the country’s emergence of onlinembling that’s making it happen.

10002014

he thing is, this gambling facet is what makes thezech Republic a grey market. The government doest have any clear-cut legislations that would regulate

nline gambling, including granting licenses to national

erators. In fact, the Czech government was taken toEU court—and lost—just because their stance forline gambling is not certain. It weren’t able to provehy online sportsbooks are regulated while onlinesinos are not. Back in 2012, the Czech Republic triedestablish regulation for online gambling companies,

nly to cancel it a year later after European gamblingerators disapproved of the framework due to tightstrictions on operators. It was also found to be inolation of the legal directives of the EU.

2012

While legislation is still yet to materialize, onlinegambling is gradually increasing in popularity, so muchso that it resulted in the decline in gaming machinesacross the country. In 2014, there were only roughly67,000 of them, a drastic decline from around 102,000three years prior. Indeed, this yearly development iswhat made online gambling prevalent in the country.

20143 102000 67000

Right now, there are over 150 online casinos operatingthere, many of which accept the koruna and offersupport in Czech. Aside from this, the rise of thisgambling aspect is partly due to the marketing effortsof the online operators, albeit it is already simple forgamblers to make deposits and obtain payouts inkorunas. Payment options include debit cards, credit

cards, e-wallets, and other numerous other methodsfor funding an online gambling account, as well ashuge bonuses and promotions, greatly contribute tothe increase in the country’s online gambling revenue.As far as gamblers are concerned, the status quo inthe country allows for them to engage in offshoregambling.

150

albeit

The challenge

The Czech Republic, while solidifying their reputationas a sought-after haven for land-based casinogambling, can denitely benet from regulating onlinegambling. With Czech gamblers enamored with the

convenience of gambling online, it is high time for tgovernment to get back to the drawing board, comeup with legislations that would benet both players gambling operators, and nally grant the latter licenin the country. That way, the nation can be mentionein the same breath as Italy, Malta, and the UnitedKingdom in terms of liberal gambling regulations.

─


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NovNovember 2015 Not Just an Online Payment Processor: Skrill’s Venture in Gambling Afliate Marke ng | EUROPE iGAMINGNot Just an Online Payment Processor: Skrill’s Venture in Gambling Afliate Marke ng | EUROPE iGAMING

Not Just an Online Payment Processor:Skrill’s Venture in Gambling Affiliate MarketingSkrill

here is no doubt that online payment processorse the lifeline of the online gambling industry. Evernce gambling through desktops and mobile devicescame the “thing,” these payment solutions haveade it possible for punters to conveniently andamlessly move their betting funds through electroniceans. Take for instance Skrill, aondon-based company whichas founded in 2001.ne of the top online paymentocessors in the world, it hasnce undergone a lot of changes,e most notable of which is thempany’s acquisition by Optimalyments to the tune of EUR1.1llion.

Skrill2001

Optimalyments 11

ut even before it was acquired,has already established alationship with the online gambling industry sincefounding, when it was rst called Moneybookers.

nce then until it underwent a major re-branding in

services over the Internet through different methods.These methods may involve organic search engineoptimization (SEO) strategies, pay-per-click, contentmarketing, or e-mail marketing, as well as other lesstraditional digital marketing efforts.

SEO

Affiliate marketing is generally made up of four keyplayers. The rst is the retailer, or the one offeringits products or services and is looking to advertisethem. The second is the network, which acts as theintermediary between the retailer and the publisher,the third important player in the scheme which issimply known as the affiliate. Last, but not the least,is the customer, which is basically the target of the

affiliate marketing efforts. The affiliate is responsible forbringing customers to the retailer’s website.

4

Skrill’s new role asgambling affiliateSkrill

With Skrill one of the brands mostlyassociated with online gambling, itis not anymore surprising that it hasventured into affiliate marketing. It nowhas its own affiliate program whereinwebsites that successfully bring innew customers to its own websitecan receive money rewards. This issomething appealing, for sure, butSkrill also has other programs suchas Promotional Centre or ExclusiveOffers, which focuses on both gamblingcustomers and traders.

2010 when it changed its name to Skrill, it becameone of the most preferred payment methods of somefor the world’s biggest gambling operators, making itincreasingly popular among gamblers across Europe

and the United States. With Optimal Payment’sacquisition nalized last August of this year, it is

expected to further expand its inuence in the market.Right now, in fact, it took the plunge

into one avenue within the onlinegambling industry: affiliate marketing.

Moneybookers2010 Skrill,

Affiliate marketing ata glance

A fast-growing market, it is a form ofmarketing wherein retailers and othertypes of businesses are able to offer

their products or services through an affiliate or anycompany responsible for advertising the products or

Skrill

Skrill

Skrill the gambling affiliate has involved itself innumerous marketing tactics in an effort to get theattention of potential gambling customers, as wellas those who are already gambling online. To beginwith, the company’s website has banners of some ofthe most popular online gambling brands operating regulated markets. Truly, Skrill’s new role as a gambaffiliate just goes to show its increased involvementin the industry. Even its parent company, OptimalPayments, may likewise become more involved in tindustry now that operators expand their reach to newregulated markets. Denitely, Skrill is not just aboutproviding their best payment solution, but also takinadvantage of the opportunity to successfully engage

affiliate marketing with operators.

Skrill

Skrill

Skrill


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