Gambling Laws in Korea Explained 2024
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Gambling laws in Asian countries vary widely. While some countries are progressive, others are still recessive. Korean gambling laws, both North and South, sit somewhere in between the spectrum.
Although gambling is a multibillion-dollar industry, the South and North Korean government limit citizens’ participation and considers gambling in casinos unlawful, except for foreigners.
This article lays out a detailed guide to discuss Korea’s complex betting industry, from its regulations to the betting forms, establishing how gambling laws in Korea can be explained in 2024.
Highlights of the Article
- Gambling is considered unlawful in Korean Law, both in North and South Korea.
- North Korea’s history of organizing national lotteries traces back to the 1950s.
- Korean Law covers all gambling activities of its citizens inside and outside the country.
- The most profitable casino in South Korea is Kangwon Casino, with ₩1.22 trillion in revenue.
- Betting in South Korea is regulated under Article 246 of the Criminal Act.
- South Koreans are allowed to put bets with a maximum amount of ₩100,000.
- In North Korea, citizens were allowed to gamble in Horse Racing in 2017 at Mirim Horse Racing Club.
- One of the celebrities caught in unlawful gambling is Korean TV host Lee Soo-Geun for alleged illegal sports betting.
Exploring The Legality of Gambling in Korea in 2024
Both North and South Korean governments consider gambling unlawful. Authorities only allow controlled sports betting and lotteries, and only foreigners can play in most Korean casinos.
The sections below explain the workings of gambling laws in North and South Korea and highlight what bets are allowed and outlawed by the countries in 2023.
North Korea
The history of the National Lottery traces back to the 1950s when the North Korean administration organized it.
Online gambling is strictly illegal in the country except for selling government-authorized lottery tickets. In fact, in 2018, North Korea instituted an intranet-based sports lottery.
For the past couple of years, there have been sightings of lottery booths in Pyongyang City.
South Korea
South Koreans have been gambling since the Three Kingdoms period, and it was only prohibited during the Joseon era.
It was in the 19th century when horse betting became legal, and Olympus Hotel Casino opened to foreigners.
The gambling market generates trillions of won in income for South Korean tourism. However, the industry is subject to rigorous legal and cultural constraints.
However, South Koreans can still bet in games like the lottery and sports. Over 25.34% of South Korea’s population participated in sports betting, with football having the highest bids in 2022.
In South Korea, the lottery has the most stable and constant record of revenue growth despite the pandemic from 2012 to 2021.
Despite strict regulations, illegal gambling remains a prevailing issue. Participating in monetary wagers and addiction to online bets among adolescents raises national concerns.
Habitual Overseas Gambler Law
Korean Law covers all gambling activities inside and outside the country. Hence, South Korean nationals are still under its jurisdiction even abroad.
A South Korean who commits habitual gambling outside the country can face up to three years in prison and a fine of up to ₩20 million under Article 246 of the South Korea Criminal Act.
Below is information about the Casino Industry in South Korea. The succeeding sections will only focus on South Korea since no data is available for North Korea.
The Casino Industry in South Korea
Existing gambling laws for South Korean citizens are strict. It is unlawful for South Koreans to gamble in Casinos – and anyone who breaches the law will be punished severely.
However, in 1995, the Korean government legalized gambling for domestic citizens, and Kangwon Land Casino opened to the public.
Discover why the South Korean government allows its citizens to gamble in Kangwon and get to know other casinos in the country.
Kangwon Land Casino
The most profitable casino in South Korea is Kangwon Land Casino, with ₩1.22 trillion in revenue and around 2.08 million visitors in 2022.
The casino has a floor size of 27,291 square meters. It is located remotely in the far north of the big cities of Jeongseon County, province of Gangwon-do.
The province used to be a war-torn area, so the government of South Korea decided to open a casino both for locals and foreigners to help the area’s economy recover.
Kangwon Land Casino was strategically built at the top of a ski resort far from the city to discourage working citizens from playing regularly.
The available gambling activities in Kangwon Land Casino are the following:
There are over 1,360 slot and video machines and 200 table games in Kangwon Land Casino.
Fun Fact
Kangwon Land Casino is South Korea’s largest casino, with over 27,291 square meters of gaming area. The floor area is still tiny compared to the biggest casinos from neighboring countries:
🏦Venetian Macau Resort Hotel boasts 550,000 square meters of gaming area
🏦Resorts World Sentosa in Singapore has 300,000 square meters.
Jeju Shinhwa World
Jeju Shinhwa World is a premium integrated resort found on Jeju Island. The casino soft-opened in April 2017, measuring 5,775 square meters.
The entire resort has 2.5 million square meters of land area, offering foreigners a luxurious casino experience since its grand opening on February 25, 2018.
It sits in the south of the Korean Peninsula in the South China Sea. The resort offers popular casino games such as:
- Electronic table games
- Slot machines
- Blackjack
- Tai Sai
- Poker games
The resort casino had an estimated consolidated revenue of HK$ 691 million in the second half of 2022.
Hyatt Regency Jeju
Hyatt Regency Jeju Casino towers on a cliff overlooking the Pacific Ocean. It is built on the beach of Jungmoon Jeju Island with an air travel time of 1 hour if you are traveling from Seoul.
The casino started its operation in January 2015, welcoming foreigners to play its casino games:
- 26 Baccarat tables
- 1 Blackjack table
- 16 Slot Machines
- 1 Roulette table
Seven Luck Casino (Lotte Hotel)
Seven Luck Casino in Lotte Hotel offers world-class European vibes. It is a perfect casino for foreign veteran gamblers since it has 40 table games. Lotte Hotel is situated in Seogwipo City with 21,000 square feet, housing 50 slot machines and video poker.
KAL Hotel Jeju
If you’re looking for a hotel and casino near the airport, KAL Hotel is only a 15-minute ride away. KAL Hotel is located on the Jeju Strait with a warmer climate and many water activities.
The casino offers traditional games such as Baccarat, Blackjack, and Roulette.
Shilla Jeju Casino
Shilla Jeju Casino is one of Korea’s world-renowned casino resorts, operating for over 30 years. It has a fascinating interior design and European ambiance that attract many gamblers worldwide.
The casino is located in Seogwipo, Jeju-do, with an 860 square meter gaming area housing diverse and dynamic games, including:
- Roulette
- Blackjack
- Baccarat
- Slot Machines
Paradise Casino Walker Hill
Located in the Grand Walkerhill Seoul, this Paradise Casino boasts more than 200 casino games for bettors. The casino also treats its gamblers with a fantastic view of the Han River.
Since its establishment in 1968, the Paradise Casino Walker Hill has offered various casino games such as:
| Casino Games | Quantity |
| Baccarat | 68 |
| Blackjack | 12 |
| Roulette | 7 |
| Other Table Games | 12 |
| Slot Machines | 127 |
| Electronic Table Games | 65 |
| Total | 291 |
Paradise Casino Busan
Busan’s Paradise Casino sits in front of Haeundae Beach, offering a world-class ocean view with 144 tables for Baccarat, Blackjack, Roulette, and 18 sections for Slot machines.
The casino provides 24/7 casino games to foreign visitors including:
- Blackjack
- Baccarat
- Roulette
- Tai Sai
- Big Wheel
- Slot Machines
Sorak Park Hotel and Casino
One of the reasons why Sorak Park Hotel and Casino is so famous is because of its scenic mountain view. The casino stands near the entrance of Mount Soraksan National Park and Sinheungsa Temple.
Sorak casino offers foreigners Roulette, Slot machines, tables, and e-Casino games. The resort features saunas, a bar and lounge, and a karaoke nightclub.
Seven Luck Casino
Seven Luck Casino is one of the biggest names in the South Korean casino industry. It has three operating branches in Yongsan, Gangnam, and Busan.
The games offered in the Seven Luck casinos are the following:
Quick Tip
There are only 2 Casinos in North Korea:Yanggakdo Hotel CasinoImperial Hotel Casino
It only caters to foreigners and does not allow locals to gamble. However, some Slots let you win tokens, not with real money, similar to F2P Social Casino Games.
Betting Forms Available in North and South Korea
Local gamblers in Korea have limited gambling activities, with betting being one of the most popular pastimes.
Betting in South Korea is regulated under Article 246 of the Criminal Act, stating that gambling for livelihood and not recreation is punishable by law. The acquitted will be sanctioned by a fine not exceeding ₩10 million.
In the case of North Korea, several government-authorized betting forms exist which serve to fund the state revenue.
Below is the list of legal gambling activities in South Korea and North Korea.
Horse Racing
Horse Race Betting in South Korea
Horse racing betting is the longest form of legal gambling in South Korea, regulated by the Korean Racing Authority.
Locals are allowed to wager with a maximum amount of ₩100,000 and only 16% of the pari-mutuel betting. It means bets are placed between players and not against sportsbookers.
South Korean horse racing generated a revenue of ₩1.05 trillion in 2021.
Horse Race Betting in North Korea
In North Korea, citizens were allowed to gamble in Horse Racing in 2017 at Mirim Horse Racing Club near Pyongyang. Unlike in South Korea, the wagering method is a raffle-like system bet.
The raffle-like system in horse betting has the worst odds compared to online betting found in online gambling sites—the reason some resulted in betting online secretly. North Koreans 12 ages and up can bet on horse racing.
Lottery
The trajectory of the lottery sector in North and South Korea differs. While South Koreans love their lottery, the industry in the North failed to launch several times.
South Korean lottery is among the country’s few legal forms of gambling, and strict government restrictions govern it.
South Korea’s Lottery Scene
There are many forms of Lotteries in South Korea. The first inception of a lottery was in 1969 called the House Lotto.
In 2004, the South Korean government introduced the Lottery Fund Act to regulate lottery and gambling in land-based Casinos. The lottery has accounted for most of the SK gambling revenue, with around ₩6 trillion.
One rising lottery in South Korea is Bok-won, aka the Pension 520 Lottery. This type of lottery uses pre-printed tickets drawn every Wednesday. It has fixed odds, and the tax rate is 22%.
North Korea’s Lottery Scene
In North Korea, the first lottery created was the ‘Motherland Defense Territory’ in the 1950s, but it became a flop.
After 40 years, the ‘People’s Lottery’ was introduced with a promising $235 million prize money. Half of the prize aimed to raise funds for the state, and rumors say that it was in preparation for the lavish birthday of Kim Il Sung.
In 2002, the NK government launched the first-ever online lottery in Pyongyang. Still, after a few years, the state decided to stop it for unknown reasons.
Bicycle Racing
The Korean government has taken inspiration from Japan’s legal betting system. But unlike Japan, Korean bicycle racing does not allow off-track betting.
Bicycle Racing is more popular with locals than foreigners because the websites and betting slips only accommodate the Hangul language.
In 2021, the revenue of betting in Bicycle Racing or track cycling is approximately ₩380 billion.
Toto-Style
Locals in South Korea can legally bet on sports in pari-mutuel betting or the “Toto-style.” The Sportsbookers hold 50% of the total bets, while half goes to the winner.
The most betted sport in South Korea is Football, with ₩3.4 trillion generated in ticket sales in 2021. The available sports to bet on are found below:
Another type of Sports Bet is the Proto method. Bettors pay for the stake and odds, written in a decimal format. Once the gamblers place bets, Sports Proto provides the potential payout.
For example, if the stake of ₩70,000 is equivalent to an odds of 1.75, the gamble has a potential winning prize of ₩122,500.
North Koreans are not allowed to bet on sports as the government outlaws Sports betting in the country. Although foreigners can partake in the scene, there are no local Bookmakers.
Koreans and their Dangerous Venture in Online Casinos
The South Korean government is actively monitoring any gambling activities in online casinos by employing SSL encryption.
Although Koreans can gamble at Kangwon Casino, only some have the luxury of going to the island, and the casino only accepts a few people daily.
Locals are driven to play at online casinos using VPN due to the struggle of playing in Kangwon Casino. VPN can hide someone’s location and access geographical site restrictions.
Side Note
Despite the strict online gambling restrictions, Koreans still risk their lives to partake in the illegal activity. These gamblers bypass the barriers by using technologies such as blockchain casinos.
Crypto gambling allows Korean bettors to gamble anonymously, although they still must be wary since the industry is not regulated.
Although it is illegal for South Koreans to gamble in online casinos, many online casino sites accept Korean players. These virtual gambling sites are not bound to South Korea’s gambling law.
Most Korean gamblers play in blockchain casinos, mainly offering crypto gambling using digital currencies like Bitcoin.
Some of these sites are:
- 1xBet
- Dafabet
- 188Bet
- 22Bet
- BetMaster.io
- 1xSlots
Helpful Article
If you are curious about blockchain casinos, follow this detailed blog on how to play in Blockchain Casinos.One highlight of these casinos is instant transactions, which frequently provide fair games.
Betting Age Restriction in Korea
The gambling age in Korea is at least 19 years old – this applies to all forms of legal betting, including horse racing, sports betting, and casino gambling.
Gambling Penalties in Korea
The number of recorded illegal gambling-related arrests in South Korea from 2011 to 2021 was over 98,000, showing how serious its Government is in deterring crime against unlawful gambling.
The Korean Criminal Code under Article 246 mentioned that illegal gambling activities in Korea are punishable by a fine or imprisonment:
Illegal gamblers may be fined a penalty not exceeding ₩10,000. A chronic gambler is punishable by imprisonment not exceeding three years and a fine not exceeding ₩20,000.
Below are the South Korean personalities caught red-handed in unlawful gambling.
Lee Soo-Geun
One of the celebrities caught in unlawful gambling is the well-known Korean TV host and comedian Lee Soo-Geun for his alleged participation in illegal sports betting.
Lee Soo-Geun has been sanctioned with a six-month prison sentence and suspended for one year with other TV personalities, Tak Jae Hoon and Tony Ahn.
Investigation revealed that Lee Soo Geun and others were convinced and coerced by Soccer club members to partake in the taboo activity.
Side Note
An estimated $1.7 trillion has been recorded in illegal betting markets annually.One of the most corrupt sports is football. Due to this, 69% of fans are losing interest in the game.
Kim Yong-man
Comedian/TV host Kim Yong-man has served eight months of jail time and two years probation after admitting to betting around $871,000 on sports betting websites since 2008.
Side Note
The Asia Pacific Region reached $21 billion in the Sports Betting Market in 2021.The two countries with the most significant contribution are South Korea and Singapore.
Authorities indicted Kim as a habitual unlawful gambler. Still, he was given a lighter sentence due to his contribution to specific causes and volunteer work.
Shin Jeong Hwan
Local authorities arrested entertainer and Korean personality Shin Jeong Hwan in the Philippines for gambling debts. He loaned everything he had, including his passports.
Later, when he returned to Korea, he was sentenced to 6 months in prison and two years probation for habitual gambling overseas.
Did You Know?
There are over three types of bets allowed in the Philippines:Pari-mutuel bettingOff-track bettingOn-track betting
The PAGCOR and First Cagayan Resort and Leisure Corporations oversee protocols and guidelines for all gambling in the Philippines.
Bottomline
The North and South Korean governments impose strict laws on gambling, and the states safeguard their respective citizens from the risk of becoming habitual and chronic gamblers.
However, there’s a massive potential revenue from the gambling industry. It’s still unknown whether these gambling laws will change in the future.
List of sources
Meet the Author
Once wrote serious life-saving stuff for the government, now unleashes his inner geek on the blog world. When not taking a deep dive into comics and video game lore or performing music, he dreams of chilling in a cold, cozy spot with a beer in his hand – probably somewhere the government won't find him. Sports and gaming enthusiast by day, cartoon and gastronomy detective by night.