The investigation began in July 2018, when a victim contacted police claiming to have lost around 700,000 yuan on a sports betting website.
Two suspects were arrested after the police traced down the online gambling operation to Fengjie County of Chongqing Municipality.
A further five have been arrested on suspicion of working as agents of the betting website.
Police said the sports betting website was based in the Philippines and around 10,000 people had signed up and participated since 2016.
One of the suspects received a three-year prison sentence, while the other was sentenced to three years and two months.
Five more suspects are yet to be sentenced.
