South Korean authorities have made ten arrests as officials thwarted an illegal gambling ring based in Cambodia.
Seven of the men, including the ringleader who has only been identified as ‘A’, have been charged with violating South Korea’s National Sport Promotion Act.
The men are alleged to have run an illegal gambling site from February 2022 and July 2023, processing transactions totalling KRW44bn (£23.4bn).
Online gaming remains illegal in South Korea, however, it is reported the site in question had over 11,000 users. Authorities seized KRW270m (£143,437) during the raid, and froze KRW120m (£63,749) in assets.
Experts urge more action
These latest arrests highlight the need for the Korean Government to address the challenges facing South Korea’s gambling industry.
Experts have called for the establishment of a new task force to focus on the gambling activity of Korean nationals outside the country.
Currently, Koreans can only gamble at a small number of government-approved venues, such as a horse racing track in Seoul, the nation’s capital, and Kangwon Land, the only casino open to locals. The 17 other casinos present in Korea are exclusively open to foreign visitors.
Korean nationals are also bound by these same rules outside the country’s borders, even when gambling is permitted by local laws. Violations of the rules can be punished by fines or a prison sentence.
However, according to data from the National Gambling Control Commission, the value of overseas gambling by Korean nationals in 2017 was 4.9 trillion won (£2.7bn), the majority of which was wagered in the Asian gaming hubs of Macau and the Philippines.
The recommendations were made during a policy forum held by The Korea Times and the Tourism Sciences Society of Korea (TOSOK), where industry experts called for the government to assess its approach to gambling by its citizens.
Lee Jae-seok, a professor at Gangneung-Wonju National University, told attendees at the conference: “While Macau and the Philippines remain key destinations for those who engage in overseas gambling, the market is expanding to neighbouring countries such as Laos, Cambodia and Vietnam and also quickly evolving online.
“That’s why we need a permanent regulatory body to comprehensively monitor international gambling activities in the whole ASEAN market.”
Japan threat looms
Fears are also rising in the country over the impact of MGM Osaka, Japan’s first integrated resort which is set to welcome players in 2030.
Industry leaders in South Korea have warned that the country’s current regulatory framework will diminish the competitiveness of its casino and tourism sectors.
“Osaka’s integrated resort is geographically close and poses a serious competitive challenge for our industry,” said Choi Chul-kyu, acting Chief Executive of Kangwon Land, the country’s only casino open to Korean nationals.
Chul-kyu was speaking at an event hosted by the Korea Casino Integrate Resort Association and the Korea Tourism Society in Osaka, which brought together officials and experts to assess the impact of Japan’s new project.
Once the Osaka resort opens, reports suggest that approximately 7.6 million South Koreans could travel there annually, spending an estimated 2.6trn won (£1.4bn).
Experts at the gathering called on the South Korean Government to recognise the importance of integrated resorts for boosting tourism to the country and bring its regulatory framework in line with other international markets.
“For Korea’s casino and tourism industries to take off, we need new policies that go beyond the current framework,” said Suh Won-seok, president of the Korea Tourism Society.
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