Introduction:
On November 29, the Jinzhou Public Security Bureau issued an official announcement stating that the Taihe Branch of the Jinzhou Municipal Public Security Bureau successfully solved a case involving the operation of a casino through a live streaming platform. The total amount of funds involved in gambling exceeded RMB 17 million.
01
Suspects Allegedly Include DouYu Streamers
According to police reports: The suspect, Zhou, was a streamer of the "PlayerUnknown's Battlegrounds" (PUBG) game on a certain platform. From 2019 to 2022, in order to increase the popularity of his live stream room and boost income, Zhou introduced gambling mechanics via the lucky draw module in his live stream room to viewers. After the games ended, rebates were given to the winners. Investigations revealed that Zhou and others organized over 5,000 gambling activities using a certain live streaming platform, with cumulative gambling funds exceeding RMB 17 million and illegal profits exceeding RMB 2.66 million.
Based on comparisons of photos, addresses, names, and live stream room setups released by the police, netizens speculated that the individual involved in this case was "Qingyu 619," a streamer in the PUBG section, who has indeed been offline for a long time.
If true, the circumstances of the streamer involved in this case may be roughly similar to those of the DouYu streamer "San San Jiu Outdoor," who was previously sentenced to six years in prison by the Dujiangyan City Court. Both had previously conducted live streaming lucky draw activities.
02
Are Live Streaming Lucky Draws Legal?
Previously, the DouYu platform publicly stated that live streaming lucky draw activities are not gambling but rather prize sales. As long as the prize amount does not exceed RMB 50,000, such activities are neither illegal nor in violation of regulations.
Does the platform's claim have a legal basis?
Anti-Unfair Competition Law
Article 10, Paragraph 3: Business operators conducting prize sales shall not engage in the following circumstances: "... (3) In lottery-style prize sales, the amount of the highest prize exceeds RMB 50,000."
This suggests that the platform's argument appears to have legal support. So, what constitutes a "prize sale"? It has two characteristics:
1. The prize in a prize sale is incidental and attached to the goods sold by the merchant.
2. The reward is a means, while selling goods is the purpose; the means serve the purpose and should not be put before the end.
What is the mechanism of DouYu's live streaming lucky draws? It invites users entering the live stream room to make small investments by paying to "subscribe" (ban ka) to participate in the lucky draw. If a fan wins, the streamer privately transfers cash equivalent to the virtual currency won via payment platforms. From this model, we can identify several characteristics:
1. The most obvious feature: Drawing lots for the sake of drawing lots; it sells the "chance to win" itself;
2. It has the nature of leveraging small amounts to win large sums; users only need to spend a few yuan to participate in the draw, with the possibility of winning substantial prizes.
03
Live Streaming Lucky Draws vs. Prize Sales
By comparing live streaming lucky draws with the characteristics of "prize sales" under the Anti-Unfair Competition Law, we can understand why live streaming lucky draws may involve gambling.
Requiring users to pay to "subscribe" constitutes the streamer's sales revenue. The lucky draw activity itself is simply a game of leveraging small money to win big money. The streamer's profit comes from the difference between the money users spend to subscribe and the amount paid out to winners. This is the sole purpose of the streamer organizing such lucky draw activities. Such activities are not attached to any product or service carrier.
Consumption behavior involving leveraging small amounts to win large sums is similar to lotteries. However, it is clear that users do not consider themselves to be purchasing lottery tickets, and the platform does not possess the necessary licenses to operate lottery-related businesses.
Conclusion:
Last month, after Chen Shaojie, Chairman of the Board and CEO of DouYu, was arrested, many streamers ceased broadcasting.
We do not know the exact reasons for the cessation of broadcasts, but this article has clarified why live streaming lucky draws may involve gambling. Therefore, it would not be surprising if streamers who previously conducted live streaming lucky draw activities are investigated.
