Gambling in South Korea is a tricky subject with many gray areas. As a nation with strong cultural undertones, the government feels the need to regulate gambling. Yes or No isn’t a justifiable answer. A better answer would be Yes and No, depending on the scenario.
Keep reading to find out when it is okay to gamble or not gamble in South Korea.
Why is Gambling Restricted in South Korea?
Yes, not until the Korean criminal act of 1953 (article 246) classified all forms of betting as illegal. As far back as 1920 before this law was passed, betting on your favourite horse show was acceptable.
Despite the criminal act, betting on sports is widely acceptable in Korea but is highly regulated. Football is one of the most popular sports Koreans actively place bets on. Although it is highly regulated, it is accepted.
The highly regulated gambling activity stems from the reality that gambling can threaten societal stability. Because it can be addictive, it can become a menace to society. Unrelated, but some participants in the Squid Game movie got there by debts incurred from gambling.
Surprisingly, despite the restrictions, recent data (Korean institute of technology 2020 report) asserts that a whopping $38 billion is generated from gambling activities in the country. Put simply, lots of Koreans are gambling through offshore and regulated providers in their country.
Korean law has more provision for foreigners to gamble than locals. This was done in a bid to boost the income from tourism efforts. Typically, foreigners are allowed to gamble with less restrictions while locals are heavily restricted.
What is Allowed by Law in Korea?
Legal provision for locals
South Korean citizens can only legally gamble at the Kangwon Land Casino & Resort. Locals may refer to it as “Gangwon” or “Kangwon”, but it is the same place. Kangwon Casino was established in the early 2000s as an effort to revitalize a coal-mining area. The casino is home to 190+ gaming tables, and 1200+ video gambling machines. There is a premium experience for VIP players. 2022 reports show that $1 billion was generated as revenue at this gambling facility.
Despite allowing locals, there are some ground rules for compliance:
- Age restrictions: Players must be 19 and above
- Entry Limit: Citizens can only visit once every 10 days, and monthly entry is capped at 15 days.
- Revenue Allocation: 80% of the revenue generated from gambling activities in this facility is allotted to regional development projects.
Gambling activity wise lotteries, sports betting, and stock market investments are considered legal activity. Lotteries are managed by the National Lottery Commission and tickets are available at several convenience stores.
Korea Sports Promotion Foundation regulates sports betting on only horse racing, cycling, motorboat racing, football, sports toto, and sports proto. Any other sports betting outside the aforementioned list is prohibited.
Legal provision for foreigners
Foreigners enjoy less gambling restrictions in Korea. This is solely in a bid to generate more revenue from tourism in Korea. Legally foreign passport holders can gamble in 17 casinos nationwide.
Compared to the locals, they have access to luxurious casinos like the Paradise Casino Seoul, Seven Luck Casino and the likes. These casinos generate over 65% of South Korea’s gambling revenue.
Do a few locals sneak up their way to these luxury locations? Yes, when they are caught, they pay fines to the tune of ₩10 million ($7,500) according to the stipulation of the Foreigner-only casino act.
What is Considered Illegal Gambling?
In South Korea most forms of private gambling are considered illegal. If it is not regulated by the government, you can be certain it is illegal. Other illegal gambling includes:
- Underground Casinos. In the 2021 unannounced raids led to the arrest of 5300+ gamblers, and popular celebrities were not left out.
- Online Poker is also considered private betting. In 2023 a Supreme Court fined ₩30 million ($22,500 USD) for a group that organized a private poker game.
Anyone player caught breaking these rules will pay fines up to ₩20 million ($15,000 USD) while operators will get up to 7 years imprisonment according to the Criminal Act Article 246. National authorities use IP Blocking and bank monitoring to crack down illegal betting.
The Gray Areas of Gambling in Korea
Truth is South Korea bans online gambling for locals. This includes gambling through offshore platforms. The national authorities actively use several tools like IP blocking, and financial monitoring to restrict online gambling sites. Up to 1200 gambling domain sites are blacklisted by the Korean Communications Commission annually.
Similarly, banks are mandated to report suspicious transactions that can be traced to gambling activities. One noteworthy case traced ₩120 billion ($90 million USD) to illegal gambling and was confiscated by the commission.
The revenue generated from gambling activities shows that more locals bypass restrictions using VPNs or cryptocurrencies. Online crypto gambling sites recommended by BestBitcoinCasino, which operates offshore, attract players by offering anonymous participation in gambling activities. Put simply, although it is illegal for citizens to gamble on these sites, anonymity means their activities can’t be traced.
Final Thoughts: Play Smart, Stay Legal
For foreigners, there’s no better time to be in South Korea than now when the restrictions are favourable. Of course, provided you are not involved in any illegal activity that could attract fines or imprisonment. Locals/citizens get once in ten days access to the Kangwon Casino provided they are above the age restriction.
The laws of South Korea are set to protect its citizens from addiction and irresponsible gaming.Sportsbetting and lottery are allowed by law but anything sort of private, underground, and unregulated gambling is considered illegal.
If you’re in doubt as to what legalities are changing, the Ministry of Culture, Sports, and Tourism has a resource page dedicated to providing updates about gambling laws.
Although many locals participate in offshore gambling providing anonymity, it is smart for as long as you’re not caught. Citizens who are caught in the act face huge fines and possible imprisonment if they are operators.