Tencent, Alibaba Help Fuel $642M In World Cup Gambling
Bianca Ortega | | Jun 26, 2014 08:16 AM EDT |
(Photo : Reuters / Christian Hartmann) The Ladbrokes (top) and PaddyPower Sport betting websites are seen on electronic devices in this picture illustration taken in Paris May 22, 2014.
Chinese Internet giants Alibaba and Tencent Holdings have helped football fans in China become part of the World Cup gambling through their mobile payment apps.
Both Alibaba and Tencent have tied up with the provincial lottery centers to allow users to bet on World Cup games despite the country's anti-gambling laws, according to a Wall Street Journal report.
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Gambling is considered illegal in majority of mainland China, but the government allows "official lotteries" to operate in provinces because the proceeds go to charity. These lotteries are now benefitting from the two giant firms as they provide an easier way for World Cup fanatics to bet using their electronic gadgets
As of Sunday, World Cup bets from China have reached $642 million (CNY4 billion), China's state-run lottery regulator said. This amount is twice as big as the 2010 tournament's grand total of CNY2.3 billion.
The two commerce giants are able to reach a wide network of customers through Tencent's WeChat messaging app and Alibaba's Taobao.
Andrew Pitcher, senior vice-president of software company SAP Asia Pacific Japan, said 85 percent of the Chinese population tends to purchase products and services using their mobile phones. This number is up from the previously recorded 30 percent three to four years back, BBC News reported.
Shanghai-based worker Cherry Tao, 30, said the first time she had placed a bet in the provincial lottery was when she bought a ticket from Taobao. The website promotes the World Cup lottery on its homepage.
Tao, who has been a soccer fan for 16 years, said she finds Taobao's smartphone app very handy as it eliminates the need to line up at a lottery stand.
At present, the market for World Cup gambling is very big in China. Although these companies give people access to what they want, they also help promote social schizophrenia by feeding gambling addiction.
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