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.
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.
The history of the National Lottery traces back when the North Korean administration organized it.
Online gambling is strictly illegal in the country except for selling government-authorized lottery tickets. In fact 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 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 South Korea, the lottery has the most stable and constant record of revenue growth despite the pandemic.
Despite strict regulations, illegal gambling remains a prevailing issue. Participating in monetary wagers and addiction to online bets among adolescents raises national concerns.
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.
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, the Korean government legalized gambling for domestic citizens, and Kangwon Land Casino opened to the public.
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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 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 North Korea, citizens were allowed to gamble in Horse Racing at Mirim Horse Racing Club near Pyongyang. Unlike in South Korea, the wagering method is a raffle-like system bet.
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.
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.