Age, Gender, and Occupation Do Not Matter... The World of Illegal Gambling

As of 2019, a 81 Trillion Won Market... Accessed via Internet and SNS Ads
Youth Gambling Becoming More Serious, but Punishments Are Weak and Monitoring Staff Insufficient

[Asia Economy Culture Young Intern Reporter] In the early hours of the 17th, dozens of people were caught by the police for gambling using Hwatu cards in a vacant commercial building. They are suspected of engaging in so-called 'Dorijitgo Ddaeng' gambling using Hwatu cards in a commercial building in Iksan City. Police investigations revealed that a significant number of the approximately 30 individuals were housewives.

On the 14th, a man in his 50s was arrested by the police for threatening a victim he did not know with a weapon in a restroom of a commercial building in Eunpyeong-gu, Seoul. The man tied the victim’s hands and feet and gagged her before stealing money and valuables. He stated, "I accumulated about 50 million KRW in private loans due to horse racing gambling, and after being pressured for repayment, I decided to commit the crime."

Illegal gambling is permeating everyday life regardless of age, gender, or occupation, and continues unabated despite repeated crackdowns. The scale is also increasing every year. According to the '4th Illegal Gambling Survey' released by the Gambling Industry Integrated Supervision Commission, the annual revenue from illegal gambling in 2019 reached 81.5 trillion KRW. In the 3rd survey conducted in 2016, it was 70.9 trillion KRW, meaning the scale has grown by over 10 trillion KRW in just a few years.

As individuals become unable to cover gambling costs with their own money, cases of embezzling company funds and squandering them on gambling are also increasing. According to the legal community on the 12th, a man in his 30s was sentenced to prison after transferring several hundred million KRW to his own account using a company’s digital certificate and OTP card, then squandering it on gambling. Investigations revealed that most of the money was used on gambling sites disguised as foreign exchange investments.

Youth gambling addiction is also becoming serious. According to the Health Insurance Review and Assessment Service, the number of youths treated for gambling addiction last year was 127, which is three times higher compared to 161 cases five years ago. The number of cases has increased annually: 252 in 2018, 362 in 2019, and 418 in 2020.

Experts say that youths can easily access illegal gambling through banner ads on social networking services (SNS). They also advise that since youths have less economic power than adults, they are more likely to fall into secondary crimes such as theft and school violence to gather gambling funds.

Currently, youths are prohibited from using all sports betting, including Sports Toto. According to Sports Toto Korea, the entrusted operator of the Sports Promotion Lottery Sports Toto issued by the Korea Sports Promotion Foundation, youths are not allowed to participate in either legal or illegal sports betting. Violations result in imprisonment or fines for both operators and participants.

However, lenient punishments for illegal gambling remain a problem. The relatively light penalties compared to the amounts earned by operating or using gambling sites are said to foster illegal gambling. In October last year, a famous internet broadcaster, Mr. B, actively promoted illegal gambling sites on his internet broadcast and earned about 72.9 billion KRW over approximately nine months. However, Mr. B was sentenced to 1 year and 2 months in prison with a 2-year probation.

Last year, a group operating illegal sports gambling worth 100 billion KRW was caught, but most received reduced sentences in the appeals trial due to being first-time offenders. Only the ringleader maintained a 5-year prison sentence, while accomplices who received 2 to 3 years and 6 months in the original trial had their sentences reduced by 6 months to 1 year or were given suspended sentences.

Insufficient monitoring personnel is also an issue. Although the Gambling Industry Integrated Supervision Commission manages and supervises illegal gambling, there are only 13 personnel for monitoring and blocking. As a result, it can take over a month from reporting an illegal site to blocking it. Accordingly, a bill is under review in the National Assembly to block sites within one day without a review process if they are deemed illegal gambling.

The legal gambling industries exceptionally permitted by the state are casinos, horse racing, cycle racing, motorboat racing, lotteries, sports promotion lottery tickets, and bullfighting matches.