13 June,2023 11:31 AM IST | Mumbai | BrandMedia
Gambling is popular all over the world, and, to a different degree or legality, can be found in far corners of the globe. Despite thousands of years of tradition and history in many countries and societies, it is still not universally beloved or allowed to prosper. And yet, the overall gambling and betting industry is constantly on the rise. This has especially been the case in the last decade or so, thanks to most of these ways of having fun and potentially earning money in the process moving almost entirely online. With innovations and breakthroughs in entertainment, finance, and security, this hobby is no longer something foreign. At the same time, fewer people than ever are making their way to their local brick and mortar establishments to play the classic games, or to the local sportsbook cafe to make a betting slip. This is especially true in tech heavy countries and areas where the future has been here for years.
The Republic of Korea, or South Korea as it is better known, is one of the most technologically advanced countries on the planet. A simple look at its capital of Seoul, is enough to understand that, or recalling the huge tech brands that originated there, such as Samsung, LG, Hyundai, and SK Hynix. However, when it comes to gambling and a branch of the larger entertainment industry, which is extremely big in this Asian country, there exist some of the strictest regulations among developed nations. Under the Criminal Act, notably Article 246, most forms of gambling are prohibited for citizens unless specifically permitted by law. The definition of gambling as interpreted by the Supreme Court of Korea is "an act of achieving monetary gain or loss through the wager of property on a game or activity based on chance." With this out of the way, let us go deeper and answer the question: Is gambling illegal in Korea, or just very efficiently controlled?
Business operations offering speculative games or gambling without authorization are also penalized under the Speculative Acts Regulation Act. In practice, this means that, beyond narrowly defined legal channels, most gambling activities, and especially the most popular ones of playing online, are illegal and subject to criminal sanctions that include hefty fines and imprisonment. Individuals engaging in unlawful gambling may face fines up to KRW 10 million (about US$7,000) and habitual offenders up to three years in prison.
Land based and online gambling are treated the same under the Korean law. There is no major legal distinction between the two in terms of prohibition, and there are two main bodies that oversee these activities. The practical effect is a tightly controlled legal framework combined with major efforts to suppress unlicensed activity. Key laws include the Tourism Promotion Act, which governs casinos, and the National Sports Promotion Act, which regulates sports betting.
What is more, in recent years, the government has introduced further guidelines to crack down on pseudo casino operations, such as poker bar formats. They did this through the expansion of the definition of casino like activity under revisions to the Tourism Promotion Act. Korea truly is one of the countries that takes care of everything in great detail and keeps in line with its beliefs.
While the online variety is very strictly regulated and overseen, the most visible form of gambling in South Korea is land based casino gaming. However, the regulatory regime still places very strict limits on access for local citizens. While about 18 casinos are operating in the country, only one, the Kangwon Land Casino in Gangwon Province, is legally accessible to Korean nationals. The rest are open only to foreigners to promote tourism. Protecting the local citizens while having a steady revenue from tourists? Both smart and efficient.
So what makes this one casino so special, and why can't others do the same? Kangwon Land's special status is a result of a law designed to promote the economic recovery of abandoned mining areas. It was established to generate employment and tourism in a depressed mining region and, hence, granted an exemption from the general prohibition. It is a very thought out example of navigation and circumventing a law on a government scale. For Korean citizens, access to casino type gaming is extremely limited, so this establishment is popular. Foreign tourists, on the other hand, are free to play in the foreigner only casinos. It makes them an important part of South Korea's tourism industry rather than the domestic entertainment sector.
Within these casinos, the classic standard table games such as poker, roulette, baccarat, blackjack, craps, and slot machines are available. Because domestic citizens are largely barred from entering, the casino business in Korea remains primarily a tourist oriented industry. However, as these things typically go, the strict rules have also led to the growth of underground or semi legal operations, namely poker bars or hold em pubs, which the government has been cracking down on at an increased rate in recent years.
Within both legal and illegal markets, certain games are especially popular. In foreigner only casinos, baccarat, blackjack, roulette, and slot machines dominate the casino floors and attract the highest number of players. On the other end of the spectrum, in underground or online spaces, similar games, especially baccarat, remain favorites, with novelty titles gaining traction as of late.
So that was a lot about casinos and how they operate. But what bout sportsbooks? Although most gambling is prohibited, the Korean government has permitted certain forms of sports betting and racing due to the popularity and importance of sports in the country. The main legal sports betting channel is the state run pool betting system known as Sports Toto. Through Sports Toto and similar state approved outlets, bettors can place wagers on major sports such as soccer (association football), baseball, basketball, golf, and volleyball, as well as pari mutuel betting on horse, bicycle, and motorboat racing.
Sports Toto operates through convenience stores and licensed outlets, with stake caps and oversight serving as measures designed to limit excessive gambling. Online sportsbooks operated by private companies remain illegal for Koreans. The legal sports betting sector, therefore, exists, but within a very narrow framework. It is state monopolized, closely supervised, and limited in scope. This model reflects the government's intent to permit betting in a controlled way for public revenue while minimizing social harm. Even within this limited legal structure, sports betting is very popular, thriving, and on the rise. However, its growth is still overshadowed by the much larger unlicensed online betting market.
For legal sports betting, just like in the rest of the world, association football (soccer) is by far the most popular, accounting for billions in ticket sales annually. Korea loves this sport and has historically had some amazing players representing the country across the globe (Park Ji sung, Son Heung min, etc.). Other sports like baseball and basketball also attract strong interest through Sports Toto.
As mentioned earlier, one of the biggest challenges in South Korea's gambling policy is the rise of online gambling, but especially in conjunction with iGaming. However, the law stays the same. It applies the same prohibition that it does to online and offline gambling, making them strictly illegal for domestic residents. Despite this, online gambling has exploded in recent years, with illegal operators targeting Korean players through offshore websites, something the government is yet to fully take control of.
One cannot sever the fine ties of individual online entertainment branches. When gaming flourishes, so does everything around it. Between 2019 and 2023, known cases of online gambling in Korea tripled. Online betting accounted for more than 80 percent of all illegal gambling activity. Korean players frequently access offshore or unlicensed iGaming platforms through VPNs and other means. The government has responded by blocking websites, monitoring financial transactions, and increasing enforcement, but the activity continues to grow.
Estimates suggest the illegal gambling market in Korea reached roughly US$78 billion in 2015, several times larger than the legal market, and continues to expand. This unregulated market represents lost tax revenue, a potential channel for money laundering, and a growing social concern related to gambling addiction. Among younger Koreans, the issue is particularly acute, as online gaming and gambling often overlap in behavior and exposure.
South Korea is globally recognized as a leader in gaming and esports. The rise of professional esports, including games like StarCraft II, League of Legends, and Dota 2, has created a new frontier in the nation's betting landscape. The competitive video game scene in Korea is unlike anywhere else, with pro gamers receiving pro athlete superstar status. Therefore, it makes sense that the fans also want to bet on the outcomes of major gaming tournaments. The esports betting market in Korea is estimated to be worth hundreds of millions of dollars, with much of it occurring through unregulated or offshore websites.
Despite the popularity of esports, betting on these events remains illegal in South Korea's regulated system. The country's state run betting system, Sports Toto, does not currently offer an esports market, to the chagrin of millions of people. However, there have been ongoing discussions about establishing a new platform, often referred to as "Esports Toto," that would finally allow regulated betting on professional esports tournaments that are huge in this leading gaming nation.
If legalized, esports betting could reshape Korea's gambling landscape. It would bring younger demographics into the legal market, generate new tax revenues, and allow for better monitoring of betting integrity. However, it would also raise concerns about match fixing and gambling addiction among youth, issues already sensitive in the Korean context that have been dominant in conversations over the last few years. At present, the esports betting scene remains largely unregulated and exists in a grey area dominated by offshore sites. The tension around this makes this an area of significant future reform potential.
In 2024, the country's casinos generated about KRW 3.23 trillion (â US$2.30 billion) in gross gaming revenue, up roughly 18 % year on year. Much of that growth comes from tourist casinos rather than local players. A big trend is the rise of "integrated resorts," combining casinos with hotels, shopping, and entertainment. Casino related stock prices have been highly sensitive to fluctuations in tourist numbers, especially from China.
The market is forecast to reach around US$957 million in 2025 and grow to about US$1.14 billion by 2030. About 25 % of South Koreans report having placed a sports bet in the past year, and roughly one third say they do so because it makes watching sports more exciting.
In Korean professional sports stadiums, women now make up a majority of the audience, around 55 %, reversing many global norms. In the KBO League (baseball), the cheering culture is extremely developed.
Over 74 % of South Koreans aged 10-65 say they play games regularly. Mobile gaming overtook PC gaming in 2017, and by 2024, more than 70% of gamers primarily used mobile devices.
In the K pop industry, entertainment companies recruit trainees globally and train them for years before debuting them. Some agencies receive hundreds of thousands of applications annually across multiple countries.
K pop, K dramas, and Korean games and films have become major global exports and a cornerstone of South Korea's "soft power." Entertainment now plays a measurable role in the nation's international influence and tourism appeal.
CD sales remain strong in South Korea, but much of the motivation is collectible rather than musical. Fans often buy albums to get photo cards, limited editions, or participation tickets. The trend has raised concerns over plastic waste.
Fans of K pop idols and sports teams often organize elaborate displays of support, from sending coffee or food trucks to concerts and filming sites to coordinating massive birthday billboards.
Korea's world class connectivity has shaped entertainment formats like streaming, mobile gaming, virtual concerts, and interactive fan experiences are now mainstream. The old "PC bang" gaming café culture evolved naturally into today's esports and mobile ecosystems.
Boundaries between music, sports, gaming, and fashion are increasingly blurred. Idols appear in games and variety shows, sports events borrow K pop style light stick cheering, and gaming companies collaborate with pop stars. South Korea's entertainment culture thrives on cross pollination.
