Strong revenue surge at Jeju Dream Tower Casino Resort leaves it mark

In South Korea a stern battle is being waged against the rising tide of gambling. The country’s strict regulations cast a wide net, capturing all forms of gambling activities within their grasp.

Imagine a lone casino, Kangwon Land Casino, nestled on the outskirts of Seoul. This is the only place where South Koreans can legally gamble, a privilege protected under the Special Act on the Assistance to Development of Abandoned Mines.

Yet, the allure of online gambling beckons, with overseas sportsbooks offering a forbidden fruit. But the authorities are vigilant, their watchful eyes ever on the lookout for violations. Recent cases involving online sports gambling rings have led to arrests, a stark reminder of the consequences.

The reach of Korean law is extensive, covering all forms of gambling by South Koreans, both domestically and overseas. However, there’s a twist. Tourists and expats can legally gamble at all casinos in the country, and Korean Law does not apply to non-Koreans while they are abroad, except in the most exceptional of crimes.

The definition of “gambling” might seem elusive, but the Korean Supreme Court has provided clarity. or loss through the wager of property on a game or activity based on chance.

At the helm of this regulatory landscape is the National Gambling Control Commission (NGCC), the watchdog that oversees the gambling industry in South Korea.

Despite these stringent measures aimed at controlling the prevalence of gambling and mitigating its potential negative impacts such as addiction and associated crimes, a concern lingers. Illegal gambling activities, particularly among the youth, persist, casting a shadow over these efforts.

As reported by South Korea is witnessing a concerning pattern as the age of underage gamblers is decreasing, while their numbers are on the rise. The South Korea National Police Agency (KNPA) has recently reported a significant increase in the number of Korean juveniles involved in illicit gambling activities. This alarming trend has prompted law enforcement to devise comprehensive preventive measures.

In the past five years, the average age of teenagers caught gambling has consistently decreased, reaching a low of 16.1 years old in 2023. In the same year, a total of 171 teenagers, aged between 14 and 19, were apprehended under suspicion of participating in illegal gambling. This marked a 2.3-fold increase from the previous year’s figure of 74. Boys constituted a staggering 92.4 percent of these individuals.

The KNPA also revealed that a significant 84.8 percent of the suspects were engaged in online gambling activities, such as baccarat and sports betting. Each game typically lasted only about 10 seconds. Furthermore, 56.7 percent of these individuals accessed gambling platforms at internet cafes, predominantly utilizing computers and smartphones.

Law enforcement authorities anticipate a continued rise in juvenile gambling through smartphones, owing to their easy accessibility and the perception among youth that mobile gambling is merely a casual pastime. However, the police have cautioned that underage participation in illegal gambling could lead to various associated crimes, including instances of school violence and fraudulent activities aimed at securing funds for gambling purposes.

National Police Agency Commissioner Yoon Hee-keun has emphasized the serious threat posed by illegal smartphone gambling to the youth. He pledged to combat youth gambling addiction through intensified guidance and efforts to prevent relapses.

In response to this trend, law enforcement agencies plan to launch awareness programs targeting middle and high school students and their parents. These programs aim to educate them about the hazards of gambling. Additionally, collaborative rehabilitation programs with local counselling centres for teenagers will be established. These programs will provide counselling, medical assistance, and legal support to offenders, offering a holistic approach to tackling this growing issue.

Having legalised online gambling in 2021, overseen by Lotería de la Ciudad de Buenos Aires (LOTBA), Buenos Aires authorities are now gearing up to implement stricter compliance measures for gambling operators, both offline and online, within the city.

The Buenos Aires legislature has announced amendments to the 'Codigo Contravencional,' expanding penalties for gambling violations. Municipal deputies Paola Michielotto and Sergio Siciliano are leading efforts to reinforce , emphasising the importance of promoting and restricting gambling to individuals above 18 years old, whether online or in licensed establishments.

Worries about excessive exposure to gambling advertisements by minors have prompted the proposed changes particularly due to their prevalence on digital platforms and during popular events including football matches. The aim is to mitigate the adverse effects of under-age gambling, which extend beyond financial implications, impacting societal issues and mental health.

Strict measures outlined in the proposed include fines for businesses found allowing individuals under 18 to gamble. All establishments in Buenos Aires must adhere to regulations preventing minors from participating in gambling activities. Payment service providers (PSPs) will be mandated to verify adult authorisation for payments made within Buenos Aires, with penalties for non-compliance. Banks and financial institutions will also be prohibited from facilitating fund transfers from under-age accounts to gambling platforms. Additionally, new advertising guidelines mandate warnings about gambling risks and age restrictions on all promotions in the city.

The gambling and lottery industry is facing severe challenges in Argentina, mainly due to high inflation rates, (211.4 percent annual inflation in 2023, the highest in 32 years). Consequently, the Buenos Aires Chamber of Official Lottery Agents (CAOLAB), last February, urged immediate policy changes to mitigate the impact of high inflation rates.  CAOLAB emphasized the need for competitiveness without state subsidies. One of their proposals is the introduction of in-person sports betting and video lottery terminals to counter revenue losses, which is a move witnessed in Brazil last month when AMZ Loterias do Brasil launched the firstin the country.

The Philippine Esports Organization () has imposed penalties against players involved in match-fixing incidents in the country’s Mobile Legends Bang Bang Development League (MDL). 

This move follows the earlier suspension by the MDL Philippines against the three players implicated in the incident. MDL Philippines announced the suspension of the involved players last April 25. 

Jungler Jhonjie Paul "Jiee" Dela Rosa from TNC Z4, midlaner Raven "Aeris" Arellano, and jungler Christian John "Nyija" Calantoc from RSG El Ganador have been suspended from participating in any MLBB esports ecosystem tournaments for three years. This suspension includes all MOONTON-endorsed events, except for the MDL and the Professional league (MPL Philippines). 

Also, effective from May 2, 2024, until April 30, 2027, PESO’s ban extends to organization-sanctioned events, including SIBOL national try outs and competitions organized by them. 

In a statement, PESO its commitment to upholding the integrity of esports and promoting ethical conduct among players. The three-year ban serves as a disciplinary measure aimed at safeguarding the integrity of competitive gaming and ensuring fair play at national and international levels.  

“While quick money is enticing, we remind young talents to keep your integrity intact as it is the cornerstone of true success and lasting fulfilment,” PESO said. 

“At PESO, upholding professionalism and ethical conduct is integral to our mission of nurturing players who represents the Philippines with honour at the World Championships,” it added. 

In a press conference, Matthew Chan, Esports League Operations Lead at MOONTON Games, explained that the decision to impose a three-year ban was based on the severity of the offense and the need for a specific timeline. This duration represents one of the harshest penalties imposed by MOONTON for similar incidents, signifying the gravity of the offence. 

Marlon Marcelo, Executive Director of PESO, emphasised the importance of giving players a chance to redeem themselves while acknowledging the severity of their actions. He expressed hope that the three-year ban would provide offenders with an opportunity for reflection and rehabilitation. 

MOONTON, PESO, and the Games and Amusement Board (GAB) are collaborating to implement measures to prevent future match-fixing incidents. This initiative aims to strengthen governance in esports and ensure fair competition, with guidance from regulatory bodies and industry stakeholders. 

Moving forward, MOONTON said it intends to work closely with PESO and GAB to develop effective solutions and safeguard the integrity of . 

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .

The closing date for securing funding of up to PHP13.51 billion (€219.2 million) for the casino hotel project at  in Manila, Philippines has been pushed back by 12 months. Suntrust Resort Holdings, the developer behind the project, confirmed the revised date, now set for April 30, 2025, in a filing submitted on Friday.   

The Westside City Project, an integrated resort located in Manila's Entertainment City, is spearheaded by Suntrust Resort Holdings. The project aims to debut its main hotel-casino in the first quarter of 2025, aligning with the extended funding deadline.  

In July 2023, Summit Ascent Investments, a subsidiary of Summit Ascent Holdings Ltd., pledged to subscribe to convertible bonds totalling up to PHP13.51 billion (€219.2 million) issued by Suntrust. However, as of last week, certain conditions necessary to finalize the agreement remained outstanding. This includes obtaining consent and approvals from regulatory bodies such as the Securities and Exchange Commission (SEC) in the Philippines.  

Summit Ascent highlighted Suntrust's financial challenges, citing failures to pay interest on previous convertible bonds. To address these issues and secure the necessary funding, Suntrust's board  a $38 million (€36.6 million) loan from LET Group Holdings, the parent company of both Summit Ascent and Suntrust.  

As per the loan agreement, LET Group has agreed to provide a $38 million (€36.6 million) loan to Suntrust, which Suntrust must repay over 10 years starting from the execution date. However, both parties have the option to extend or shorten the repayment period by mutual agreement, or in case of default. Suntrust believes that this loan will have a positive impact on its business, operations, and financial condition, as it is expected to improve the company’s prospects.  

The delay in securing funding and addressing financial concerns may potentially impact the completion and opening of the main hotel-casino. Summit Ascent emphasised the importance of securing necessary capital expenditures to prevent significant delays in the project's development. 

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .