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Online gambling ringleader sentenced
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The ringleader of a major online gambling operation in Liaoning province has been given a 15-year prison sentence and a 40 million yuan ($5.8 million) fine.

The People's Court of Shuncheng in Fushun, Liaoning province, on July 2 also issued fines totaling 150.55 billion yuan to the 42 ring members convicted in the case.

Mastermind Yang Xu, a resident of Liaoning's capital Shenyang, was convicted of operating an illegal business and running a gambling house. The other convicts, many of whom were relatives, included former prisoners, workers, bank clerks, businessmen and unemployed people ranging in age from 24 to 61. Police confiscated the operation's gambling money and devices.

"The growing number of property confiscations and fines in illegal gambling convictions shows China is moving toward international practice in its fight against illegal gambling," Zhang Qingming, a lawyer with the Liaoning Lawyers Association, said.

Zhang explained courts had previously issued heavy criminal penalties but rarely issued many fines or confiscated property.

The Shenyang-based newspaper Chinese Business Morning View quoted an unnamed judicial worker in the case as saying 25 of the 42 arrestees were convicted of both operating an illegal business and running gambling operations, whereas they would not have likely faced both charges in the past.

"It is a signal the nation has strengthened punishments for online gambling," he said.

Liaoning's police received reports alerting them to the illegal online gambling ring on June 16.

Upon investigation, they learned the 5.8 billion yuan operation involved 100 members. Yang had founded the online gambling group with his wife in 2005.

Zhu Chuang, vice-procurator-general of the Shuncheng Procuratorate, said online gambling causes greater harm than ordinary gambling, because it often involves larger sums of money.

As many gambling websites' servers are in foreign countries, a large amount of gambling money flows out of the country through illegal financial institutions, creating a serious threat to the nation's financial security, he said.

"Fighting against online gambling is a new challenge," he said.

"It spreads quickly and is often well concealed."

(China Daily July 9, 2008)

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