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South Korean Illegal Gambling Market Now Worth $65 Billion, Says Regulator

South Korea
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The South Korean illegal gambling market is growing fast, a lawmaker has warned, calling on parliamentarians to help fight a rise in youth betting addiction.

The comments came from the lawmaker Jeon Yong-gi, the South Korean broadcaster SpoTV News reported. Jeon is a member of the ruling Democratic Party.

Jeon said recently compiled statistics from the Korea Gambling Control Commission show the country’s illicit gambling networks are now worth around 96 trillion won, or $65 billion.

The commission also revealed its data shows 4% of all under-18s have experience using illegal gambling sites or betting offline.

Data released by the National Police Agency also points to a significant increase in youth gambling case numbers. The number of illegal youth gambling cases rose by 62% last year, the agency said.

“The problem of illegal youth gambling is now significant and serious,” said Jeon. “We have arrived at a point where the entirety of South Korean society must recognize that this is a serious problem.”

Jeon pledged to ensure that “active discussions regarding the issue of illegal youth gambling take place at the National Assembly level.”

Jeon is a member of the assembly’s National Policy Committee.

The floor of the South Korean National Assembly building, in Seoul, South Korea.
The floor of the South Korean National Assembly building, in Seoul, South Korea (Image: Dmthoth [CC BY-SA 3.0])

South Korean Illegal Gambling Market Grows, Youth Pay Costs

Jeon was speaking at an anti-youth gambling forum at the National Assembly co-sponsored by the Korea Sports Press Association.

Advocates for reform told attendees that bolstering school and after-school physical education programs could help children avoid developing betting addictions.

They spoke of creating a “first-line of defense system” by “revitalizing youth sports and arts programs.”

Kim Dong-hwan, an emeritus professor of sports coaching at Hanyang University and the former head of the Competitive Equestrian Federation, also backed the initiative.

“Actively utilizing the existing school system is the most realistic way of solving the problem of illegal gambling in young age groups,” said Kim. “Strengthening the expertise of physical education teachers and increasing the amount of sports in the curriculum will have preventive effects.”

“The fastest way to prevent illegal gambling among youth is to fully utilize and strengthen the existing school system,” he added.

Youth Gambling Costs: A $1.4 Billion Bill

The National Gambling Control Commission, South Korea’s gambling regulator, said the cost of youth gambling is climbing.

The commission’s Secretary-General, Lee Jin-sik, said youth gambling “requires the involvement of not only the sports community but also the Ministry of Education, Welfare, Gender Equality and Family.”

“The data shows us that the social cost of youth gambling amounts to 2 trillion won [$1.4 billion],” Lee said.

“It is time for the government to commission meaningful research in this area. We need more national awareness of this issue,” Lee added.

Police officials also waded into the debate.

“Illegal gambling among youth groups is becoming a social problem. It does not start and end with the gambling itself,” said Ha Dong-jin, head of the Women and Youth Division at the Seoul Metropolitan Police Agency. “Instead, it leads to secondary crimes, as young gamblers look to fund their illegal gambling habits.”

One advocate said South Korea should follow the USA’s lead in school sports programs.

The advocate said Seoul should develop a US-style system. This could see successful young sports players receive additional credit to boost their grades.

Last year, the South Korean National Police Agency reported a 24x rise in gambling-related juvenile crime cases between 2021 and 2024.

A recent study, meanwhile, found that more South Korean children than ever are encountering illegal betting ads online.

Fifty-six percent of school-age children in Gangwon and Jeju provinces said they have seen or clicked on online gambling ads.

Tim Alper

Tim Alper iGaming Journalist

Tim Alper is a journalist covering betting news and regulation for CasinoBeats, with a focus on regulatory developments and international markets. He reports on breaking stories across Europe and Asia, including gambling law changes and crackdowns on illegal betting platforms.

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