South Korea Gaming Commission Says Illegal Gambling Continues to Rise

• Gambling
• 18 October 2024

The National Gambling Control Commission (NGCC) of South Korea reports that cases of unlawful online gambling are on the rise in the nation. 

Just after a widely publicized scandal where a well-known Korean comedian confessed to embezzling funds from his celebrity pals, including a BTS boy band member, to support his online gambling habit, the NGCC revealed the count of unlawful gambling reports that the government's gaming regulator has handled in recent years. 

The figures indicate a shocking increase in alleged illegal gambling. 

As initially stated by GGRAsia, the NGCC revealed the illegal gambling statistics at the behest of an opposition legislator in the National Assembly who aims to restrict — not increase — gambling in the nation. The NGCC data showed that the office's illegal gambling complaints skyrocketed from under 14,000 cases in 2019 to 48,648 cases in the previous year. 

Offshore Casinos Aiming at Koreans 

The NGCC revealed that unlawful, unregulated online gambling sites were primarily to blame for the illicit occurrences of gambling. Unauthorized online casino gambling represented more than 80% of the case volume. 

Offshore gaming platforms mainly function from the Philippines and other nations and territories that are supportive of iGaming, such as Malta, Curacao, and the Isle of Man. These jurisdictions permit online gaming companies to operate their gambling websites and applications under a facade of legality, although the majority of nations, such as South Korea and the United States, enforce laws that prohibit an offshore internet gambling business from accepting bets from individuals within their borders. 

South Korea imposes significant restrictions on legal gambling, allowing only the state-operated lottery and parimutuel horse betting as the main exceptions. The government also permits citizens and residents to wager on slot machines and table games at Kangwon Land, located approximately 100 miles east of Seoul. 

Residents must pay a toll of KRW9,000 (US$6.57) to access the locals' area of Kangwon Land. In May, Kangwon Land representatives informed GGRAsia that the local area of the casino is “always crowded,” whereas the gaming section for foreigners is seldom busy. 

The remaining 16 land-based casinos in South Korea are exclusively for foreigners. 

Comedian's Unamusing Predicament 

Earlier this week, comedian Lee Jin Ho, known for his role in the hit Netflix series “Knowing Bros.” before being let go by the platform following his gambling revelation, stated that he financed his online casino activities through loans from his celebrity friends. BTS member Jimin stated he was swindled for 100 million KRW (US$73,300) after Lee did not repay the personal loan. 

Lee mentioned on social media that he "found an illegal gambling site" during the pandemic and became addicted to online slot games. Lee revealed that he took out over one billion won (US$733,929) from fellow performers and an additional 1.3 billion won from financial institutions. 

The Korea Times reported on a different case of unlawful online gambling involving a 17-year-old who incurred over 16 million won in debt. His parents cleared the debt but urged the government to enhance internet security and restrict illegal gambling sites. 

The NGCC estimates that over the last five years, Koreans have lost more than 100 trillion won (US$73 billion) to illegal gambling sites.