What To Know About Doing Business in China
China, a fast developing nation with a growing wealthy class and legendary tradition for gambling has started to sound like paradise for casino affiliates around the world. CAP members voted China to be the market with most potential in 2012, more specifically, data shows that 4 out of 10 CAP members believe China to be the best market to approach this year.
However, there is more than meets the eye, so, in case your eye hasn’t met much recently, here are some vital facts any affiliate interested in the Chinese online gaming market should know.
Fact 1. Gambling is Not Considered a Profitable Activity in China (at least not by the local authorities)
The Chinese government is not very friendly towards any form of gambling that has profit as its end. This is because in China gambling is a tradition that has been passed on for many generations, and the idea that it might become something lucrative rather than a social, interactive activity is not held highly. The Chinese government is very strict when it comes to ruling its people, so no profitable gambling is allowed, however home games and social gatherings that involve gambling are encouraged (these activities can involve personal profit but not corporative profit).
As a result of this, those Chinese who can afford it, gamble in Macau and the Chinese government doesn’t seem to mind that the activity is done offshore. However, under the current law there is no form of legal gambling in the country.
Fact 2. Rapid Economic Growth = Profit Ho!
The fact that china has been growing economically at an outstanding rate in the past decade mostly as a result of industrial growth and manufacturing suggests that there are more Chinese citizens with enough means to gamble. A rational government would see in this the opportunity to obtain more revenue from taxes by regulating and legalizing the activity, so everyone is hoping that this will be the case.
However, many have been hoping that this will be the case in countries with more fiscally-oriented markets, and these are the results: http://www.casinoaffiliateprograms.com/blog/us-state-stances-on-online-gambling/ So we still need to see what lays ahead for China.
Fact 3. Language and Cultural Barriers to be Addressed
If you are interested in pioneering into the online gambling market in China, some Chinese lessons and an Intro to Chinese History class wouldn’t hurt too much. Why do we say this? Mostly because casino affiliates are used to approaching markets with a predominantly “Western” mentality, and China is the furthest from that you can imagine (literally and figuratively).
Affiliates entering this market should be aware that they are entering a market formed by people who often don’t seem to have a problem with an authoritarian government and the legislation imposed by it, they have a complex history of war, tradition and religion, and to put the cherry on top of the Sunday: they speak Chinese, one of the most complex languages in the world.
However, this isn’t a dead end. Western casino affiliates have globalization to their advantage, as English classes are currently one of the most demanded services in China at the time. Also, the fact that religion is not a predominant topic at online gambling forums is beneficial and the history of the culture can be learned along the way. It is important to notice that entering the Chinese market will not be a piece of cake and that there is some preparation involved.
Furthermore, some affiliates at CAP are already discussing affiliate programs and strategies to enter the Chinese market. Don’t be left out on getting updates and a chance to share your input at out forums.
Are you ready for China this year? What else would you like to learn about this market? Let us know so we can help out!