Illegal online gambling has surged in South Korea over the past few years, with cases tripling between 2019 and 2023. According to the National Gambling Control Commission (NGCC), reported incidents of illegal gambling rose from 13,064 to over 39,000 during this period. Online gambling now accounts for more than 80% of illegal wagers, with the rest attributed mainly to sports betting, which represents 19.4% of the total.

The NGCC’s data reveals a concerning trend: South Korea’s illegal gambling revenue jumped from KRW70tn in 2016 to KRW102tn in 2022, largely fueled by the growing online market. The COVID-19 pandemic has played a significant role in this rise, with lockdowns and restrictions leading to the closure of legal gambling venues, which pushed many people to unregulated platforms. Experts, such as Kyung Hee University’s hospitality professor Seo Won-seok, refer to this as a “balloon effect,” where restrictions on legitimate businesses drove an increase in illegal activity.

Growing Addiction and Youth Vulnerability

The impact of illegal online gambling is felt particularly by young people and those struggling with addiction. Data from the Korea Gambling Problem Prevention and Healing Center shows that the number of minors seeking treatment for gambling disorders this year exceeded 2,600—a 4.6-fold increase since 2017. A survey of 18,400 students revealed that 26% had engaged in online gambling within the previous three months. This highlights a troubling pattern of underage individuals being drawn into illegal gambling, often through unregulated online platforms.

A cyber-crime officer from Gyeonggi Bukbu Province expressed concern that illegal operators are specifically targeting younger audiences, seeing them as potential long-term customers. The accessibility and allure of these platforms, coupled with the anonymity they offer, make it difficult for authorities to control the problem.

The NGCC estimates that 2.37 million South Korean adults—roughly 5.5% of the population—are likely gambling addicts. This widespread issue has garnered attention not just for the social harm it causes, but for its economic implications as well. Illegal gambling’s profitability continues to dwarf that of legal wagering, which only generates about KRW20tn annually, one-fifth of what illegal gambling brings in.

High-Profile Cases Highlight the Issue

The issue of gambling addiction came to national prominence last week when South Korean comedian Lee Jin-ho admitted to having an online gambling problem. In an emotional post on Instagram, Lee shared how he had stumbled upon an illegal online gambling site in 2020 and accrued significant debts as a result. Reports suggest he borrowed KRW100m from BTS member Jimin and billions more from other sources to cover his gambling losses.

Lee’s confession has had immediate professional repercussions. The producers of the popular Netflix series “Knowing Bros” announced that Lee would be removed from the show, with his previously filmed content being edited out. He was also dropped from the Netflix variety show “Comedy Revenge” and lost his role as an ambassador for his hometown of Hwaseong City.

In his statement, Lee expressed regret, saying, “I’ve been diligently repaying my debts every month and plan to continue doing so until the day I die. The financial loss is painful, but what hurts more is betraying those who lent me money.”

Government Response and Challenges

Despite the increase in illegal gambling, the NGCC has seen budget cuts. The commission’s budget to monitor illegal online activities decreased from KRW1.87bn in 2019 to KRW1.43bn last year, and its monitoring staff has been reduced as well. The Korea Communications Standards Commission has shut down or blocked more than 40,000 illegal gambling websites between 2018 and 2022, but this has done little to stop the flood of unlicensed operators.

South Korea’s strict gambling laws allow locals to gamble only in specific, regulated formats such as lotteries, horse racing, and boat racing. Casino gambling is restricted to Kangwon Land, the country’s sole casino that permits South Korean citizens to play. However, with legal options limited and largely inaccessible, illegal online platforms are filling the gap, particularly as they can be accessed from the comfort of home.

Despite these challenges, South Korea remains committed to cracking down on illegal gambling. First-time offenders can face fines up to KRW10m, while repeat offenders risk three years in prison. Yet, as the appetite for gambling in South Korea shows no signs of waning, the government must contend with a growing black market that is becoming increasingly difficult to control.

Sources:

“Data Shows Tripling of Illegal Online Gambling Cases in South Korea Since COVID“, asgam.com, October 21, 2024.

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