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Operating an online gaming business without a license is illegal in most jurisdictions. A gaming license provides legal authorisation to run your business and demonstrates your compliance with relevant laws and regulations. Gamblers' protection.
Is it legal to start an online casino? Yes, as long as you obtain an online gaming license. The license doesn't have to be from the country you live in. It can be from any country where online gambling is legal.
The Criminal Code of Republican China has prohibited both public gambling and the provision of venues for gamblers to assemble (e.g., casinos) since 1935.
Almost all forms of gambling in Mainland China have been illegal since 1949, when the current communist party took control of the country. While many have hoped that these laws would be updated in the same way the UK is currently doing, this doesn't seem likely any time soon if ever.