Skin gambling in mainland China: Survival of online gambling companies

Abstract

“Skin gambling” is a new form of online gambling that has gained significant popularity over the last decade in the People’s Republic of China. Drawing on government reports and business media, this study employed two case studies of three leading Chinese skin gambling businesses to investigate how these companies survived and thrived despite Chinese laws that regulate online gambling. The findings revealed that the industry used the division of online gambling into virtual “skin” items and the separate exchange of these items for cash to shield businesses from the crackdowns ordered on online cash gambling events. Further, the skin gambling businesses were found to operate under the cover of the “esports industry,” “predictive games in public forums,” and “virtual assets markets.” The study demonstrated the significance of cultural framing in negotiating the regulation of illicit market practices.