Entertainment & Sports

Short Drama Online Platforms: Gambling Crime Compliance Risks and Legal Analysis

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5 MIN READ
ABSTRACT

With the rapid development of short drama internet platforms, new forms of gambling disguised as short dramas have emerged. This article analyzes the criminal risks of short drama platforms related to gambling and provides compliance recommendations.

I. Introduction

Short drama platforms have rapidly developed in China, with市场规模 exceeding billions of yuan. However, some platforms have introduced gambling elements disguised as “recharge” and “betting” features, creating new criminal risks. This article examines gambling-related criminal risks for short drama platforms.

A. Article 303 of Criminal Law

Gambling and organizing gambling activities are criminalized under Article 303 of the Criminal Law. Penalties include detention, fines, and imprisonment up to three years for ordinary gambling, with heavier penalties for aggravated circumstances.

B. Distinction Between Gambling and Entertainment

The Supreme People’s Court has clarified that gambling requires the intent to profit through betting, with stakes of significant amount or organizational structure.

C. Online Gambling Platforms

Online gambling platforms face enhanced penalties under special provisions for operating gambling websites.

III. Criminal Risk Analysis for Short Drama Platforms

A. Recharge and Virtual Currency Systems

Platforms requiring user recharge to purchase virtual currency for viewing may constitute illegal gambling if users can exchange virtual currency for cash.

B. Betting Features

Some platforms allow users to bet virtual currency on plot development, with winners receiving additional currency. If currency can be exchanged for cash, this constitutes gambling.

C. Agent and Distribution Systems

Multi-level agent systems may constitute illegal gambling operations if they involve betting and cash exchanges.

IV. Compliance Recommendations

A. Prohibit Cash Exchange

Platforms should clearly prohibit exchange of virtual currency for cash.

B. Platform Terms

Clear terms of service should specify that virtual currency has no real monetary value.

C. Content Review

Implement robust content review to ensure platform compliance.

V. Conclusion

Short drama platforms must carefully design their business models to avoid gambling criminal risks. Compliance with entertainment industry regulations is essential.

RESEARCH TEAM

ZENG Rui Senior Partner

Zeng Rui is a senior partner at Beijing Long An (Guangzhou) Law Firm, a member of the Securities and Capital Markets Professional Committee of Guangdong Lawyers Association. He has extensive experience in securities and funds, culture and entertainment, real estate and infrastructure.