Regulator: South Korea’s Illegal Gambling Market Now Worth $65 Billion

(AsiaGameHub) –   A lawmaker has issued a warning about the rapid expansion of the South Korean illegal gambling market, urging fellow parliamentarians to combat a surge in betting addiction among young people.

According to a report by the South Korean broadcaster SpoTV News, the remarks were made by lawmaker Jeon Yong-gi, a member of the ruling Democratic Party.

Jeon stated that recently gathered statistics from the Korea Gambling Control Commission indicate the nation’s illegal gambling networks are valued at approximately 96 trillion won, equivalent to $65 billion.

The commission also disclosed that its data indicates 4% of all minors have engaged with illegal gambling websites or placed bets offline.

Figures released by the National Police Agency also signal a major uptick in gambling cases involving youth. The agency reported a 62% increase in illegal youth gambling cases last year.

“The issue of illegal youth gambling has become substantial and grave,” Jeon stated. “We have reached a stage where all of South Korean society must acknowledge this as a severe problem.”

Jeon committed to guaranteeing that “active discussions concerning the problem of illegal youth gambling are held at the National Assembly level.”

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

South Korean Illegal Gambling Market Grows, Youth Pay Costs

Jeon made these comments at an anti-youth gambling forum held at the National Assembly, which was co-sponsored by the Korea Sports Press Association.

Reform advocates informed attendees that enhancing school and after-school physical education programs could assist children in avoiding the development of betting addictions.

They discussed establishing a “first-line of defense system” through the “revitalization of youth sports and arts programs.”

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

“The most practical approach to addressing illegal gambling in younger demographics is to actively use the existing school system,” Kim said. “Enhancing the skills of physical education teachers and incorporating more sports into the curriculum will have a preventative impact.”

“The quickest method to stop illegal gambling among young people is to fully leverage and reinforce the current school system,” he added.

Youth Gambling Costs: A $1.4 Billion Bill

The National Gambling Control Commission, South Korea’s gambling regulator, reported that the expenses associated with youth gambling are increasing.

The commission’s Secretary-General, Lee Jin-sik, stated that tackling youth gambling “necessitates the engagement of not just the sports community but also the Ministry of Education, Welfare, Gender Equality and Family.”

“According to the data, the social cost of youth gambling reaches 2 trillion won [$1.4 billion],” Lee said.

“It is now time for the government to authorize significant research in this field. Greater national consciousness of this problem is required,” Lee added.

Police authorities also contributed to the discussion.

“Illegal gambling within youth groups is evolving into a societal issue. It is not confined to the act of gambling itself,” stated Ha Dong-jin, head of the Women and Youth Division at the Seoul Metropolitan Police Agency. “Rather, it results in secondary offenses, as young gamblers seek ways to finance their illegal gambling activities.”

One proponent suggested that South Korea emulate the United States’ approach to school sports programs.

The advocate proposed that Seoul implement a US-inspired model. This could involve granting successful young athletes extra credit to improve their academic scores.

Last year, the South Korean National Police Agency documented a 24-fold increase in gambling-related juvenile crime cases from 2021 to 2024.

A recent study also found that a growing number of South Korean children are being exposed to illegal betting advertisements online.

In Gangwon and Jeju provinces, 56% of school-age children reported having seen or clicked on online gambling ads.