Illegal Online Gambling on the Rise in South Korea
Between 2019 and 2023, reported cases of online gambling by South Koreans almost tripled.
The National Gambling Control Commission (NGCC) reports that cases grew from 13,000 to more than 39,000 in the four-year period. Online gambling comprised more than 80 percent of total illegal wagers. Illegal sports betting came in a distant second, at 19.4 percent.
The NGCC estimates that 2.37 million Korean adults—about 5.5 percent of the population—are compulsive gamblers. The problem is also increasing among young people.
South Korea’s National Police Agency also reports a rise in gambling addiction among young people. So far this year, the number of minors in treatment through the Korea Gambling Problem Prevention and Healing Center exceeded 2,600, up 4.6 times over 2017.
In 2023, the Korea Problem Gambling Agency (KCGP) said a total of 7,063 students were treated at hospitals for gambling addictions between 2017 and 2021. In a survey of 18,400 students, 26 percent said they had gambled online in the previous 90 days.
The Korea Communications Standards Commissions has shut down or blocked over 40,000 gambling websites over the past five years.
Casino Operator Pledges $1 Billion for Vietnam Expansion
The president and CEO of Hoi An South Development Ltd. says the company will invest an additional $1 billion in its Quang Nam integrated resort (IR), Hoiana Resort & Golf, over the next two years.
In an Oct. 17 meeting with provincial lawmakers, Steven Wolstenholme joined other international business leaders in agreeing to boost their local investments. The goal is to further establish Quang Nam as a tourist destination.
Wolstenholme said the IR already represents a $4 billion investment. Through August, Hoiana hosted more than 500,000 visitors, 80 percent of them foreigners. The project also contributed more than VND1 trillion ($39.58 million) to the local budget in 2022-23 and VND396 billion ($15.68 million) in the first half of this year.
That’s 55 percent of total collections from foreign-invested enterprises (FIEs) in Quang Nam.
In Philippines, Eight Foreign Nationals Arrested in POGO Raids
Philippines authorities have raided two more suspected offshore gaming operations, known as POGOs, and arrested eight Chinese and Vietnamese nationals.
The Department of Justice (DOJ), Bureau of Immigration and the National Bureau of Investigation conducted the raids. Officials said they uncovered devices typically used in the illegal operations, such as scripts and voice-over IPs typically used in online scams.
DOJ spokesman Mico Clavano said the suspects apparently thought they could hide in plain sight in gated communities. “But thanks to vigilant neighbors, there is no safe place for them anymore,” he said.
POGOs first launched as a legitimate industry in 2016, under former president Rodrigo Duterte. Over the years, it became a haven for organized crime and a front for online love and crypto scams. It allegedly dealt in money laundering, human trafficking, prostitution and torture.
In July, President Ferdinand Marcos Jr. ordered an immediate ban of the industry. But “pocket groups in residential areas” are still being rooted out, the DOJ said.
Thai Residents Want Tax-Free Gaming, Lower Casino Fees
Lawmakers in Thailand are reviewing public feedback on proposed “entertainment complexes” in the kingdom. In August, the Ministry of Finance held a two-week online hearing to gauge public opinion on a proposal to introduce five or more integrated resorts (IRs) with casinos.
Some respondents proposed reducing license terms from 30 to 10 years, while others suggested extending them to 50-60 years. They also want the entrance fee for Thais to be reduced from 5,000 to 1,000 to 2,000 baht. And they want gambling winnings to be tax-free.
According to a Thai House committee, IRs could generate 12 billion baht ($358 million) in taxes in the industry’s first year.
NY Judge Awards $1.6 Billion to Baha Mar Developer
On Oct. 18, following an 11-day bench trial, New York Supreme Court Justice Andrew Borrok found that China Construction America (CCA) deliberately scammed BML Properties Ltd. (BMLP) in the development of Baha Mar, a casino resort in Nassau, Bahamas. Borrok awarded $1.6 billion to BMLP CEO Sarkis Izmirlian.
The case dates to 2011, when Izmirlian retained CCA to build the multibillion-dollar resort, scheduled to open in early 2015. According to BMLP counsel, starting in 2014 CCA began to deliberately mislead BMLP about its ability to complete the resort on time.
Borrok ruled that CCA engaged in “outright sabotage” of the development, then “tried to shake down Mr. Izmirlian for more money before they would even discuss completion.” In June 2015, BMLP was forced to file for Chapter 11 bankruptcy. In 2016, the resort was acquired by Hong Kong-based conglomerate Chow Tai Fook Enterprises. It opened in 2017.
A CCA spokesperson called the judgment “deeply flawed,” saying BMLP “overborrowed, overspent and overextended itself and then drove the project into a wrongful, secret bankruptcy … to eliminate its obligations at the expense of other stakeholders.” It promised to appeal.
