19 charged in $11.3M illegal gambling operation across South Korea
As many as 19 people have been handed over to prosecutors in South Korea for running an illegal gambling site valued at 15.5 billion won (approximately US$11.3 million) and opening unauthorised adult gaming venues across the country.
According to the Southern Gyeonggi Provincial Police Agency’s Cyber Investigation Unit, three people — including a 50-year-old man identified as A — have been arrested in connection with setting up illegal gambling venues. Sixteen others, including gaming venue operators and account providers, have also been transferred without arrest on related charges.
A and his associates are accused of operating an online gambling site between June 2022 and July 2023, with over 1,300 registered users and total deposits amounting to 15.5 billion won. The site hosted games such as “slots” and “baccarat”. In addition to the online platform, illegal offline venues were opened in nine locations, including Pyeongtaek, Hwaseong, Incheon Yeongjongdo, Dangjin, and Wonju.
Police say A lent money to acquaintances for the initial setup of the gaming venues but kept most of the profits for himself. When venues failed to make money, he allegedly gathered the operators and verbally abused them.
The police began their investigation after receiving intelligence and arrested A in December last year. By this month, they have handed over six executives from the main operation office, 11 venue operators, and two account providers to prosecutors. Authorities also plan to recover A’s criminal proceeds after estimating the exact amount.
Gambling in South Korea
Gambling is mostly prohibited for South Koreans, with exceptions for certain government-approved activities such as the Kangwon Land Casino in Gangwon Province and specific forms of betting like horse racing and lotteries. South Koreans are restricted to only one of the country’s 18 casinos, while 16 others are designated for foreign nationals. Illegal gambling activities, including online casinos and sports betting, are common, despite the legal restrictions.
In recent years, illegal online gambling has surged, with reports indicating that the number of cases nearly tripled between 2019 and 2023. The estimates that illegal gambling revenue reached 100 trillion won (US$72.5 billion) in 2022. The rise of unregulated platforms is partly attributed to the COVID-19 pandemic, which pushed many gamblers toward online options. Authorities continue to crack down on illegal gambling, blocking thousands of websites and imposing hefty fines and prison sentences on offenders.
