CHINA CLAMPS DOWN ON ONLINE GAMING
16 October 2009
Sweeping new directive excludes foreign firms
from the Chinese industry
China's online video gaming industry regulator, the
General Administration of Press and Publication, has
effectively banned all foreign participation in the vast
Chinese market, a target of considerable potential for
many ambitious Internet gambling operators.
The
news broke Monday on the Wall Street Journal blog, which
reported that the regulators have banned foreign
investment in the domestic online gaming industry, along
with bans on foreign investment in China’s online game
operations through wholly-foreign owned enterprises,
joint ventures and cooperatives.
Foreign
investments are also banned from “indirectly
influencing” Chinese online game companies by providing
technical support or signing contracts.
The
circular is apparently part of a government drive to
eliminate unhealthy and illegal online content, and the
blog recalls that in July this year the Ministry of
Culture outlawed games that feature gangster themes or
mafia-type gang activities.
"The implication is
that foreigners have been behind some of the games with
objectionable content," the blog observes, going on to
quote Kou Xiaowei, vice director of the technological
and digital department of GAPP, who said: “In recent
years, some foreign companies tried to get involved in
China’s online game operations in various forms, which
caused severe disorders in China’s online game
industry.”
To date, operators of some 45
domestic online games that violated the regulations have
been punished by GAPP, according to the Chinese language
media.
As far as the approval process for online
games is concerned, the latest announcement states that
no organisations or individuals may run online gaming
businesses without a permit from GAPP. And once approved
by the GAPP, games can go online without any additional
permissions from any government departments.
Early last month, the State Commission Office for Public
Sector Reform issued a notice clarifying the
responsibilities of several state departments in the
regulation of online gaming.
According to the
notice, the Ministry of Culture is responsible for
market supervision for the online gaming industry, while
GAPP is in charge of managing the pre-approval process
prior to the publication and distribution of online
games.
China's online gaming market is one of
the world's fastest growing, with sales expected to rise
30 percent to 50 percent this year to Yuan 24 - 27
billion according to official estimates from GAPP.
Industry observers note that the expanded ban will
inevitably impact any proposed online gambling efforts
in the Asian country.
Online Casino News Courtesy of
Infopowa
More news here.
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