By Tak Sung Hyun, General Manager, Responsible Betting Deparment, Korea Racing Authority; Member, ARF Council on Anti-Illegal Betting and Related Financial Crime
Since its establishment in 2008, The National Gambling Control Commission of Korea (NGCC) has consistently focused on regulating legal gambling industries.
Legal gambling industries that can be controlled directly are subject to intensive regulations such as restrictions on online betting and the CAP system (under which for a certain period the maximum number of business premises is controlled and the rate of sales increase of in the legal gambling industry is kept at an appropriate level).
Since 2008, the size of the South Korean illegal gambling market has grown to KRW 49.0 trillion (~USD 37 billion), an increase of 91%, and expanded to an uncontrollable level. In contrast, the legal gambling market, where regulations were concentrated during the same period, grew by only 46%, to KRW 6.9 trillion (~USD 5.2 billion).
The NGCC introduces its National Master Plan for Gambling Control every five years and the new plan takes effect from 2024. To ensure that the new policy of NGCC is focused on controlling illegal gambling, the Korea Racing Authority (KRA) commissioned the Korean Institute of Criminology and Justice (KICJ) to conduct research regarding the State of the Illegal Gambling Industry and Countermeasures.
In 2023, KICJ published this paper and submitted it to the NGCC. The KRA have very positive expectation that the confirmed facts of the KICJ research will provide important information in establishing the NGCC’s policy for effective countermeasures against illegal gambling.
What follows is a summary of the research (translated into English), prepared by the Korean Institute of Criminology and Justice.
Summary of research by Korean Institute of Criminology and Justice, October 2023