Discussed and adopted by the Judicial Committee of the Supreme People’s Court; issued on December 25, 2018.
Keywords
Criminal / crime of operating a gambling house / online gambling / WeChat group
Holding
The act of, for the purpose of profit, soliciting gamblers by inviting people to join a WeChat group, conducting gambling according to the lottery results of guessing-game websites, setting gambling rules, using the WeChat group for control and management, and continuously organizing online gambling activities over a period of time, falls within “operating a gambling house” prescribed by paragraph 2 of Article 303 of the Criminal Law.
Basic Facts
On February 14, 2016, the defendants Li Zhirong, Hong Liwo, and Hong Qingquan, together with Hong [X]1 and Hong [X]2 (both at large), using a rental house near the valve base in Yingdu Town, Nan’an City, Fujian Province as their base (later moved to a suite on the fifth floor of Dazhong Electric Appliance City, Huanjiang Road, Yingdu Town, Nan’an City, Fujian Province), employed Hong [X]3 and others, and used smartphones, computers, and other equipment to establish a WeChat group (group nickname “Xun Long Jue,” renamed several times to “(New) Class of ’98 Classmates Chat”) to solicit gamblers for online gambling. Hong [X]1 and Hong [X]2, as initiators and investors, were responsible for managing the entire group behind the scenes; defendant Li Zhirong was mainly responsible for finance and maintaining the gambling software; defendant Hong Liwo was mainly responsible for logistics; defendant Hong Qingquan was mainly responsible for handling disputes with gamblers; and defendant Hong Xiaoqiang was an investor and introduced gamblers such as Chen [X] to join the WeChat group for gambling. The WeChat gambling group divided its start-up capital of RMB 300,000 into 100 capital shares, and set up an additional 10 technology shares. Among them, defendant Hong Xiaoqiang held 6 capital shares; defendants Hong Liwo and Hong Qingquan each held 4 technology shares; and defendant Li Zhirong held 2 technology shares.
Gambling participants joined the WeChat group and transferred gambling funds to the banker’s (nicknamed “Bailong Account Room” and “Qinglong Account Room”) WeChat or Alipay accounts, credited as points (one yuan equivalent to one point), and then placed bets in the group by betting on large or small, odd or even, according to the lottery results of guessing-game websites such as “PC Dandan.” The gambling group operated 24 hours a day, with dozens of participants per round and daily bets totaling hundreds of thousands of yuan. By the time of the case, the group had accepted a cumulative total of RMB 3,237,300 in gambling funds. During the operation of the gambling group, dividends were distributed twice, with defendant Hong Xiaoqiang receiving RMB 36,000, defendant Li Zhirong receiving RMB 6,000, defendant Hong Liwo receiving RMB 12,000, and defendant Hong Qingquan receiving RMB 12,000.
Judgment
On March 27, 2017, the Zhanggong District People’s Court of Ganzhou City, Jiangxi Province rendered Criminal Judgment (2016) Gan 0702 Xing Chu No. 367: (1) Defendant Hong Xiaoqiang committed the crime of operating a gambling house and was sentenced to fixed-term imprisonment of four years and fined RMB 50,000. (2) Defendant Hong Liwo committed the crime of operating a gambling house and was sentenced to fixed-term imprisonment of four years and fined RMB 50,000. (3) Defendant Hong Qingquan committed the crime of operating a gambling house and was sentenced to fixed-term imprisonment of four years and fined RMB 50,000. (4) Defendant Li Zhirong committed the crime of operating a gambling house and was sentenced to fixed-term imprisonment of four years and fined RMB 50,000. (5) The illegal gains totaling RMB 66,000 returned by the four defendants, and the 6 mobile phones, 1 laptop computer, and 3 desktop computer mainframes transferred with the case and used for the crime, were confiscated in accordance with the law and turned over to the state treasury. After the judgment was pronounced, none of the four defendants appealed, and the judgment had taken legal effect.
Reasoning
The effective judgment of the court held that the defendants Hong Xiaoqiang, Hong Liwo, Hong Qingquan, and Li Zhirong, for the purpose of profit, solicited gamblers by inviting people to join a WeChat group, conducted gambling by betting on large or small, odd or even according to the lottery results of guessing-game websites, used the WeChat group for control and management, and continuously organized online gambling activities over a period of time, which fell within “operating a gambling house” prescribed by paragraph 2 of Article 303 of the Criminal Law. The defendants Hong Xiaoqiang, Hong Liwo, Hong Qingquan, and Li Zhirong opened and operated a gambling house, accepting a cumulative total of RMB 3,237,300 in gambling funds, which should be found to constitute “serious circumstances” prescribed by paragraph 2 of Article 303 of the Criminal Law, and their acts all constituted the crime of operating a gambling house.
Relevant Legal Provisions
Paragraph 2 of Article 303 of the Criminal Law of the People’s Republic of China
Disclaimer: This translation is provided for reference and informational purposes only. In the event of any discrepancy, the official Chinese text issued by the Supreme People’s Court shall prevail. This translation does not constitute legal advice.
