DouYu Chair and CEO Chen Shaojie, 39, was arrested earlier this month inward mainland China for allegedly allowing gambling on his unrecorded streaming service.
DouYu is the equivalent weight of Twitch inwards China, though it has far more active monthly users than its US counterpart. DouYu was founded past subgenus Chen inward 2016.
Tencent Holdings, the Chinese multinational tech and entertainment conglomerate that is the world’s largest picture gaming publisher, holds a 37% stake inwards the unrecorded streaming service. DouYu confirmed yesterday that subgenus Chen had been arrested “on or about” Nov. 16.
The Company has non received any prescribed notice of the investigating against Mr. subgenus Chen or the reasons for Mr. Chen’s evident arrest. The Company cannot notice on the nature or expected timeline of subsequent sound proceedings, if any, that may follow,” the DouYu statement explained.
“Mr. Chen’s on-going detainment and any subsequent related to effectual proceedings and enforcement actions against the parties involved may experience a material contrary impact on the Company’s reputation, business, and results of operations. The Company maintains normal military operation of its business organization and remains committed to upholding regulatory compliance on its platform. The Board and management will supervise the operations of the Company and act on contingency plans inward response to Mr. Chen’s hitch and related investigations,” the statement concluded.
Casino.org reported on Nov. 7 that subgenus Chen had been detained on suspected porno and gambling charges.
Gambling Charges
Reports get surfaced that subgenus Chen was arrested on charges of facilitating illegal gambling activities on the DouYu platform. Reuters reports that the DouYu founder and chief executive was arrested nigh Chengdu, the working capital urban center of the Sichuan Province.
Chinese media outlets previously reported before the company financial statement this week that subgenus Chen had been missing for at least troika weeks and had not been seen inward public since August. The Reuters account suggests subgenus Chen is beingness accused of running an online gaming enterprise, something that’s illegal in China.
Most forms of play by from the sports lottery are prohibited on the mainland and inward Taiwan and Hong Kong. Macau is the lone elision inwards China where commercial message casinos with expansion slot machines and tabularize games tin can operate.
Company Notice
It’s suspected that prosecutors inward Communist China believe the DouYu political platform is beingness used to ease betting 'tween viewers watching the unrecorded streaming of video games. In its annual report filed this yr with the US Securities and Exchange Commission (DouYu is traded on the Nasdaq), DouYu said it was taking steps to preclude illicit activity on its platform.
If our platform is deemed to follow intermeshed inward or ease sure illegal or incompatible activities, we may demand to take such activities permanently, or qualify rules for such activities that could take a leak them to a lesser extent attractive, or yet live guinea pig to fines, penalties, or criminal or civil liabilities, which may hold an contrary wallop on our business, results of surgical process and reputation,” the regulatory filing read.
In 2020, Tencent, which also controls DouYu’s primary feather rival, Huya, proposed a $10 one million million merger of the Chinese streaming giants. But the transaction was out of use(p) on antitrust grounds by China’s State Administration of Market Regulation.
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