The government of the republic of South Korea has recently been more keen on closing down the unauthorized gambling businesses within the country. The new rules have been developed by the National Police Agency, the Ministry of Culture, Sports and Tourism, and the National Gambling Control Commission together with the latter two entities to crack down on companies that conduct so-called pseudo-casino business.
These standards are intended to eliminate a legal gray area where activities, that resemble gambling, have been permitted in the past, like places like poker lounge styled pubs or ‘hold’em pubs. The amendment of law on the promotion of tourism has recently armed authorities with some new instruments to confront these unlawful activities. In the revised Article 26 Act, casino-like operations refer to non-casino operators who offer gambling activities that yield profit to some users with corresponding losses by others.
The consequences for breaching these new rules are strict and the offenders can get 7 years in prison or pay up to 70 million South Korean won (some 51000 USD). This clampdown is the result of an increase in local hold ‘em pubs that provide paid gambling services that allow customers to exchange points for money or other incentives, that makes them similar to small casinos[1].
Korean law does not allow gambling and gaming to a certain degree, for instance, bets taking place for mere fun and in some government approved trading and writing houses. Since then, the only casino operational for the citizens of South Korea is Kangwon Land Casino in Gangwon Province, which has been created under Special Act on the Assistance to the Development of Abandoned Mine Areas in 1990s[1].
The new guidelines also give a clear stand as to what the authorities find unlawful in gambling activities. Any games that allow patrons to earn points or credit with the purpose of encouraging patronisation of the game in future are banned as being ‘profit-profit operations outside a casino. The changes, which have come as a result of Article 26, list down the following games which have been categorized as casino operations thus: slot machines, roulette, blackjack, dice games, poker, baccarat, bingo, and mahjong[1].
This crackdown is not limited to real-world businesses but covers even online gambling sites as well. The Game Industry Promotion Act guides the legal status of online gambling in South Korea as prohibited except for the lottery. Internet censorship is common and there are information showing that access to foreign Internet gambling sites is currently constrains and filtered by Internet Service Providers. The financial institutions regularly report and filtrate transactions that may be connected to foreign-based Internet gambling sites [2].
The government of South Korea has taken a very conservative approach to the gambling and whatever activities are considered unlawful locally can be prosecuted outside the country provided it involves a South Korean citizen. Each player is liable to a maximum fine of 5 million won (about 3,673 euros) for betting through unauthorised operators’ Internet sites and stations. He pointed out that recidivists are punishable by up to three years imprisonment or by a fine that could go up to 20 million won (around 14,695 euros).
In fact, the South Korean government does not seem to be inclined to ease the stringent anti-gambling rules even if such measures could bring massive revenues to the country. So, the attitude towards gambling in the country is still oriented on the reception of foreign tourists with limited opportunities for directing their own population. This strategy is clearly seen in the running of most land based gambling facilities which are only allowed to cater for foreigners and expatriates with Kangwon Land Casino being the onlyexceptions.
Friends such as Japan are considering entering the casino market, and South Korea has the possibility of rival foreign players. The future integrated resort that is MGM Osaka in Japan with the construction plan to be completed by 2030 will also be in fierce competition for the same tourism products market. This has spurred some industry stakeholders to call upon the government of South Korea to review its gambling laws and possibly include more integrated resorts to enhance its competitiveness in the ASEAN region tourism industry [4].
The government’s willingness to continue to regulate gambling strongly indicate other societal issues touching on addictions and financial loss. But conversely it offers problems for the countries tourism sector and therefore potential tax earnings. While South Korea is still dealing with all these issues, there still is an ongoing… {}; The extent to which regulation continues to occur weighs heavily as policymakers and industry players grapple with issues related to economic opportunities.
