In Depth: China’s Livestreaming Apps Face a Reckoning Over Gambling

In April 2024, Banban, a prominent Chinese voice-chat app with 36.2 million registered users and 240,000 streamers, abruptly ceased operations following a sweeping government crackdown on illegal gambling in the livestreaming industry. The closure came about a year after a police raid of its parent company, Changxiangban (Wuhan) Technology Co. Ltd., led to the detention of 25 executives and employees, with more arrests following soon after[para. 1][para. 2]. This marked a turning point in China’s intensified enforcement against platforms allegedly facilitating gambling, with nearly 100 sites investigated since early 2023. While the outcomes of many investigations remain uncertain, some cases have resulted in convictions and ongoing trials[para. 3].

Authorities targeted the industry’s use of games of chance that encourage addictive behaviors and integrate real-money cash-out features, arguing these systems create an economy indistinguishable from illegal gambling. Platforms countered that the secondary cash-out markets are instigated by users and streamers, not the platforms themselves, prompting debates over legal responsibility[para. 4]. Legal experts note that criminal liability largely hinges on whether platforms knowingly allowed or profited from illegal gambling activities. Platforms that exercised meaningful preventative controls might be exempt, but those taking commissions from gambling profits are at risk of prosecution[para. 5].

Until the 2023 raid, Changxiangban was seen as an industry leader. Notably, its top shareholder, Fu Yaping, fled the country amid the investigation[para. 6]. In November 2023, 14 individuals—including Changxiangban’s vice presidents and managers—were formally charged with operating a casino[para. 7]. Since 2018, Banban had embedded games of chance within its app, allowing users to buy virtual currency to play and win prizes. These prizes, often tipped to streamers, could be cashed out. Prosecutors allege that streamers frequently returned a portion of these winnings to users, effectively running illegal gambling operations. Banban also profited by taking a cut of the cash-out transactions[para. 8]. The platform incentivized guilds (agencies managing streamers) with high transaction targets and commission rates, amplifying the volume of gambling activity. Between August 2020 and March 2023, total funds wagered on Banban reached 3.64 billion yuan (about $502.4 million)[para. 9][para. 10].

Other major cases soon followed, including that of Beijing Xingluo Technology, whose voice-chat app, Xingluo Play, enabled similar gambling-like activities through a practice known as “scrap collection” for cashing out. Over 13,000 users placed wagers totaling 68 million yuan. In March 2024, company founder Zhang Qijun was sentenced to over five years in prison after admitting the app’s design intentionally fostered gambling behaviors[para. 11][para. 12][para. 13][para. 14].

The legal debate revolves around whether platforms act as neutral providers or are culpable organizers of illicit gambling. Prosecutors argue the technical infrastructure and profit motives prove active complicity, while defendants claim ignorance and robust risk controls[para. 17][para. 18][para. 19]. Complex blame-shifting persists—platforms accuse guilds and streamers, while those parties claim the platform’s policies drove their actions[para. 20][para. 21]. Legal interpretation increasingly hinges on whether virtual items can be exchanged for real-world value and whether platforms knowingly tolerated and profited from large-scale secondary markets[para. 27][para. 28][para. 29][para. 30].

This regulatory campaign signifies a shift in accountability from individuals to platforms, disproving the notion of “technology neutrality” and forcing app companies to reassess their business models[para. 33][para. 34][para. 35]. As top-tier platforms eliminate risky features, smaller players conceal them or innovate around regulatory reach. The persistent challenge for regulators is to contain illicit gambling without unduly stifling digital innovation, requiring nuanced legal and commercial strategies moving forward[para. 39][para. 40][para. 41][para. 42][para. 43].