Pros and cons

The legal wrangle over sports gambling and its potential impact on morality has stoked heated debate not only in China but also around the world.

According to one school of thought, legalizing sports betting will lead to more gambling addicts and cause social problems in the long run. However, many countries have already started to acknowledge the gambling industry's positive contribution to tax revenue and employment levels.

In Malaysia, where European soccer is extremely popular, authorities legalized sports betting this month, although no licenses were issued in time for the World Cup finals.

However, the road to legalization in China "will be much more difficult because in Chinese culture, gambling is traditionally loathed for its degeneration of human nature and is considered extremely bad for the education of young people", said Song.

"Chinese tend to think gambling, in whatever form, is never right," he said. "But we should recognize that gambling, if managed properly, can be turned into something good."

Song said he believes opening up sports betting in China would help retain the large amount of money that otherwise flows to other countries, while the tax revenue could be used to promote and develop China's sports industry or support charitable causes.

"It should not be a question of allowing or not allowing sports gambling, but how we regulate it so that we minimize the negative impacts and give full play to the positive side," said Feng Baiming, director of the center of lottery studies at Henan University of Finance and Economics, who is a well-known proponent of legalized sports betting.

He suggested the authorities should gradually clear the way for sports betting by allowing more varieties of gambling, such as horse racing, which is already available in Hong Kong.

China can learn from experiences of other countries by issuing licenses to selected organizations, he said. "In that way, it would be much easier to monitor and regulate the operators than if they are hidden underground or abroad."

To prevent punters from going bankrupt, the government could even set a maximum stake, Song suggested.

Bo Haibao, director of the School of Politics and Law at Shanghai Finance University, disagreed, however, and said maintaining social order should be the basis for any lawmaking.

"In that sense, legalizing sports gambling would only ruin our social morality," he said.

Also, despite the growing calls for legalization in some quarters, a general consensus among experts is that the current supervision system in China is not fit to ensure a healthy and successful sports gambling operation.

Both lotteries running today - the sports lottery and welfare lottery - are managed by the Ministry of Finance and distributed by the Ministry of Civil Affairs and the General Administration of Sport. However, the difficulty in three parallel departments governing one sector is creating problems, say experts.

"The most important thing is to have an independent supervision organ that effectively stems corruption and restores people's confidence in fair gaming and gambling," said Feng. "If not, the legalization of sports gambling would run greater risks of corruption."

The reason why few people use the sports lottery to bet on domestic soccer matches is because people do not trust in the fairness of an administrative body that both regulates and benefits, he said.

"The foul play and corruption exposed in the recent scandals are perfect examples," said Feng. "No one would dare put a bet on games after that."

In response to calls to make the sports lottery more appealing to modern punters, officials unveiled three new varieties ahead of this year's World Cup.

Wang Xuehong at Peking University said she believed the ban on sports gambling would eventually be lifted in China.

"People in Hong Kong have been able to bet on soccer matches through the Hong Kong Jockey Club since 2003, when authorities decided to beat underground gambling rings," she told Southern Metropolis Weekly.

"One day, sports gambling with fixed odds will also become legal on the mainland," she said.