South Korea sees spike in online gambling

From 2019 to 2023, illegal online gambling in South Korea surged threefold, posing significant risks particularly to the youth, with online gambling constituting a staggering 80% of all illegal wagers.

In the four-year span between 2019 and 2023, recorded instances of online gambling in South Korea escalated dramatically, multiplying almost threefold. According to the National Gambling Control Commission (NGCC), reported cases skyrocketed from 13,000 to over 39,000 within this timeframe. Notably, online gambling accounted for more than 80% of total illegal wagers, far outpacing illegal sports betting, which comprised just 19.4%.

The NGCC estimates that approximately 2.37 million adults in South Korea—equating to about 5.5% of the population—qualify as suffering from gambling addiction, as highlighted in a recent report by the Korea Times. Additionally, illegal gambling revenue surged from KRW 70 trillion in 2016 (approximately £39 billion/€46.7 billion/$50.68 billion) to an astounding KRW 102 trillion by 2022.

This significant increase is largely attributed to the COVID-19 pandemic, which forced the shutdown of legitimate gambling establishments and subsequently intensified the appeal of illegal online gambling options. Seo Won-seok, a hospitality professor at Kyung Hee University, noted in an interview with the JoongAng Daily that the pandemic “shrunk legitimate offline gambling businesses, creating a balloon effect in unregulated options.”

From 2018 to 2022, the Korea Communications Standards Commission took action against this growing issue by shutting down or blocking more than 40,000 online gambling websites.

High-Profile Case: Celebrity Admissions

The ramifications of illegal gambling entered the spotlight recently when well-known comedian Lee Jin-ho openly disclosed his struggles with gambling addiction. In an Instagram post dated October 14, Lee shared that he had inadvertently discovered an illegal online gambling site in 2020, which led him into substantial debt.

Reports indicate that he borrowed KRW 100 million from superstar Jimin of BTS, along with significant sums from other entertainers and moneylenders, ultimately reaching a point where he struggled to pay his rent. Fortunately, Lee credits the support of friends and a realization that he might have to abandon his beloved career for his ability to quit gambling.

Increasing Threat to Youth

Concerns regarding gambling among young individuals are escalating as well. In the current year, over 2,600 minors sought treatment for gambling-related issues through the Korea Gambling Problem Prevention and Healing Center, marking a 4.6-fold increase since 2017.

A cyber-crime officer in Gyeonggi Bukbu Province noted a troubling trend—illegal online gambling operations are actively targeting youth as potential customers. A recent survey involving 18,400 students revealed that 26% had engaged in online gambling within the preceding 90 days, underscoring the urgent need for preventive measures.

Legal Context and Serious Consequences

In South Korea, while residents are permitted to gamble on government-sanctioned lotteries and select sports (including horse racing, boat racing, and cycling), they are further limited to participating only in one of the 18 casinos available: Kangwon Land, situated in a remote area of Gangwon Province.

The government’s stringent approach to gambling infractions extends to online activities as well, with first-time offenders liable for fines up to KRW 10 million and repeat offenders facing penalties of KRW 20 million, coupled with the possibility of up to three years in prison.

Despite the strict regulatory environment, the available legal betting options remain insufficient to satisfy South Koreans’ substantial appetite for gambling. According to insights shared at a tourism seminar in Seoul, illegal gambling is estimated to generate five times the revenue of legal wagering, which reportedly brings in about KRW 20 trillion annually.

Consequences for Lee Jin-ho

While comedian Lee Jin-ho strives to repair his public image, the fallout from his gambling admissions has been swift and severe. Last week, producers of the popular Netflix series Knowing Bros announced Lee’s immediate departure from the show, vowing to edit out his existing footage to the highest extent possible.

Lee also faced exclusion from the Netflix variety series Comedy Revenge, with the streaming giant expressing profound disappointment upon learning of the situation just a day before the show’s premiere. Furthermore, on October 17, Lee lost his role as an ambassador for his hometown of Hwaseong City.

In his public plea for understanding, Lee stated, “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. I will also cooperate fully with any police investigations and accept the consequences of my actions.”

South Korea’s Struggle Against Illegal Gambling

Despite the alarming surge in online gambling cases, the NGCC’s response appears lackluster. Its budget designated for monitoring online gambling activities has seen a reduction, dropping from KRW 1.87 billion in 2019 to KRW 1.43 billion last year. Concurrently, the staff responsible for regulation has diminished from 13 in 2023 to just 12 in the current year.

This downturn in resources raises pressing questions about South Korea’s ability to combat illegal gambling effectively. As the market for illegal online gambling continues to thrive, enhanced regulatory strategies and more robust community outreach initiatives are crucial in creating a safer gaming environment for all citizens, particularly the vulnerable youth.