The Rising Tide of Illegal Online Gambling in South Korea
Posted on: October 18, 2024, 11:55h
Last updated on: October 18, 2024, 12:09h
South Korea is grappling with a significant surge in illegal online gambling, as reported by the National Gambling Control Commission (NGCC). Despite stringent laws prohibiting online gambling, the number of illicit activities has skyrocketed, raising alarms among lawmakers and regulators alike.
A Scandal That Shook the Nation
The issue of illegal online gambling has gained heightened visibility following a scandal involving popular comedian Lee Jin Ho. He recently admitted to stealing money from his celebrity friends, including BTS member Jimin, to fund his online gambling addiction. This revelation has not only shocked fans but has also spotlighted the broader issue of gambling addiction in South Korea.
The NGCC has disclosed alarming statistics regarding illegal gambling complaints. In 2019, the commission received fewer than 14,000 reports of illegal gambling. Fast forward to last year, and that number has surged to a staggering 48,648 cases. This dramatic increase has prompted calls for stricter regulations and more effective measures to combat the growing problem.
The Role of Offshore Casinos
A significant portion of the illegal gambling activity in South Korea can be traced back to unregulated online gambling websites, primarily operating from offshore jurisdictions like the Philippines, Malta, Curacao, and the Isle of Man. These sites exploit legal loopholes, allowing them to operate under the guise of legality, despite being illegal for South Korean citizens to access.
The NGCC has reported that over 80% of the illegal gambling cases involve these rogue online casinos. The ease of access to these platforms, combined with the anonymity of online gambling, has made it increasingly difficult for authorities to monitor and control the situation.
Limited Legal Gambling Options
In South Korea, legal gambling options are severely restricted. The government permits only a state-run lottery and parimutuel horse wagering, along with limited access to slot machines and table games at Kangwon Land, the only casino open to locals. To enter the locals’ area of Kangwon Land, residents must pay a toll of KRW 9,000 (approximately US$6.57). Interestingly, while the locals’ section is often crowded, the area designated for foreign visitors remains largely underutilized.
The remaining 16 brick-and-mortar casinos in South Korea are exclusively for foreigners, further limiting the options available to South Korean citizens and pushing many towards illegal online alternatives.
The Personal Toll of Gambling Addiction
The personal stories emerging from the illegal gambling crisis highlight the devastating impact of addiction. Lee Jin Ho’s case is just one of many. He revealed that he became addicted to online slots during the pandemic, borrowing over one billion won (US$733,929) from fellow entertainers and an additional 1.3 billion won from banks. His debts have not only affected his career but have also strained relationships with friends and colleagues.
Another alarming case involved a 17-year-old who accumulated over 16 million won in debt through illegal online gambling. His parents were forced to pay off the debt and have since called on the government to take more decisive action against illegal gambling websites.
The Financial Impact
The NGCC estimates that South Koreans have gambled away more than 100 trillion won (approximately US$73 billion) on illegal gambling websites over the past five years. This staggering figure underscores the scale of the problem and the urgent need for effective regulatory measures.
As the NGCC continues to grapple with the rising tide of illegal online gambling, the focus remains on finding solutions that not only curb illegal activities but also address the underlying issues of gambling addiction within the population. The situation is complex, but the need for action has never been clearer.