Regulatory AuthorityNational Gambling Control Commission (NGCC)
License CostVaries
Regulation by Activity Type
Casinos
Regulated
Online Casinos
Prohibited
Betting
Regulated
Online Betting
Prohibited
Lotteries
Regulated
Poker
Regulated
Highlights
South Korean law prohibits gambling for citizens, with only tightly regulated exceptions such as lotteries, horse racing, and limited sports betting.
Kangwon Land is the only casino where South Korean citizens can legally gamble; all other casinos are exclusively for foreigners.
Online gambling is illegal for South Koreans, and authorities actively block access to offshore gambling sites and penalize violators.
Gambling laws apply extraterritorially—South Koreans can be prosecuted for gambling abroad under the Habitual Overseas Gambler Law.
All gambling operators must be licensed, with casinos regulated under the Tourism Promotion Act and sports betting under the National Sports Promotion Act.
Penalties for illegal gambling include fines up to KRW 20 million and imprisonment of up to three years for repeat or habitual offenders.
The National Gambling Control Commission oversees responsible gambling, addiction prevention, and industry compliance, with a strong focus on youth protection and illegal gambling crackdowns.
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Legislation
Primary Legislation
South Korea’s gambling sector is governed by a complex and restrictive legal framework that encompasses several major statutes, each targeting specific types of gambling activities. The core laws currently in force include:
Criminal Act (Articles 246 and 247): This is the principal statute criminalizing most forms of gambling, both land-based and online, for South Korean citizens. Article 246 prohibits unlawful gambling, while Article 247 addresses habitual gambling, imposing stricter penalties. The law applies extraterritorially, meaning South Korean nationals can be prosecuted for gambling abroad.
National Gambling Control Act: This act establishes the overarching regulatory framework for all gambling activities in South Korea and sets out the structure and responsibilities of the National Gambling Control Commission.
Tourism Promotion Act: Governs the operation and regulation of casinos, including licensing and oversight, primarily for foreigner-only casinos. The act also covers the unique exception of Kangwon Land Casino, the only casino where South Korean citizens are permitted to gamble.
Lottery Tickets and Lottery Fund Act: Provides the legal basis for the operation and regulation of state lotteries, including the issuance and sale of lottery tickets.
National Sports Promotion Act: Regulates legal sports betting activities, including betting on football and other sports through officially sanctioned channels such as Sports Toto.
Korean Racing Association Act, Bicycle and Motorboat Racing Act: These acts regulate betting on horse racing, bicycle racing, and motorboat racing, setting out the legal framework for these specific forms of gaming.
Game Industry Promotion Act and Speculative Acts Regulation Act: These laws address games with speculative or gambling elements, including both online and land-based gaming, and prohibit unauthorized speculative activities.
Regulatory Authority
Oversight and enforcement of gambling laws in South Korea are divided among several government bodies, each responsible for specific sectors:
National Gambling Control Commission: The central authority responsible for the overall regulation, supervision, and policy coordination of all legal gambling activities in South Korea.
Ministry of Culture, Sports and Tourism: Regulates casinos, motorboat racing, cycle racing, and sports betting activities, including the licensing and monitoring of casino operations.
Ministry of Agriculture, Food and Rural Affairs: Oversees horse racing and traditional bullfighting, including the regulation of betting on these activities.
Ministry of Strategy and Finance: Regulates the lottery sector, including the issuance and management of state lotteries.
Provincial and City Police Departments: Enforce criminal prohibitions related to illegal gambling and speculative activities at the local level.
License Types
Types of Gambling Licenses in South Korea
Casino Licenses: Issued for land-based casinos, primarily catering to foreign tourists. Only one casino, Kangwon Land, is licensed to accept South Korean citizens; all others are for foreigners only.
Sports Betting Licenses: The government grants an exclusive license to the Korea Sports Promotion Foundation to operate Sports Toto, the sole legal sports betting platform. The Korea Racing Authority holds exclusive rights for horse race betting, and there are separate licenses for bicycle and boat racing betting.
Lottery Licenses: The national lottery is operated under a government-issued license, with a single authorized provider.
Internet Café (PC Bang) Licenses: Required for venues offering multiplayer computer games to the public, but not for gambling; these are regulated separately from gambling licenses.
Arcade and Amusement Game Licenses: Required for businesses providing gaming machines and arcade games, with additional requirements for those targeting juveniles.
Application Process and Duration
Casino Licenses:
Applicants must submit a detailed proposal to the Ministry of Culture, Sports and Tourism (MCST) or, for Jeju Island, to the Jeju provincial government.
Casinos must be part of a tourist hotel, international conference facility, or certain passenger ships.
Jeju casinos require location within a five-star hotel in a designated foreign investment area.
The review process is rigorous, involving background checks, financial assessments, and facility inspections.
Licenses are typically issued for a set period (e.g., 5 years), with renewal subject to ongoing compliance and periodic review.
Sports Betting Licenses:
No open application process; licenses are granted exclusively to state-run entities (e.g., Korea Sports Promotion Foundation for Sports Toto).
Duration is indefinite as long as the entity remains compliant and under government oversight.
Lottery Licenses:
Operated exclusively by a government-appointed provider; no open market for new applicants.
Internet Café and Arcade Licenses:
Businesses must register with local authorities and meet facility requirements.
Licenses are valid as long as business registration is maintained and compliance is upheld.
Eligibility and Key Requirements
Casino Licenses:
Applicants must have a clean legal and financial record.
Proof of sufficient capital and financial stability is required.
Facilities must meet strict security, surveillance, and responsible gambling standards.
Jeju casinos must be in designated areas and attached to luxury hotels.
Operators must implement anti-money laundering (AML) and know-your-customer (KYC) procedures.
Sports Betting and Lottery Licenses:
Only government entities or designated operators are eligible.
Strict adherence to responsible gambling and social contribution requirements.
Arcade and Internet Café Licenses:
Facility must not be visible from the outside for speculative activities.
Age restrictions and identity verification are mandatory for customers.
Licensing Costs and Financial Requirements
Casino Licenses:
There is no standardized public fee schedule; costs depend on project scale, location, and government assessment.
Significant capital investment is required, especially for integrated resort projects.
Jeju casinos may have additional provincial fees and investment requirements.
Annual fees are not always specified, but compliance and regulatory costs are ongoing.
Sports Betting and Lottery Licenses:
No licensing fees for private operators, as only state entities are permitted.
Internet Café and Arcade Licenses:
Application and registration fees are generally modest and set by local governments.
No separate annual fees, but compliance with facility and safety standards is mandatory.
Renewal and Maintenance of Licenses
Casino Licenses:
Renewal is contingent on ongoing compliance with all regulatory, financial, and responsible gambling obligations.
Operators are subject to regular audits and inspections by authorities.
Failure to comply can result in suspension or revocation of the license.
Sports Betting and Lottery Licenses:
As state-run monopolies, these licenses are maintained through continued government oversight and compliance.
Internet Café and Arcade Licenses:
Renewal is tied to business registration and ongoing compliance with local regulations.
Summary Table: Main Gambling License Types in South Korea
South Korea’s gambling sector is highly regulated, and only certain forms of gambling are permitted—each with its own taxation regime. The main categories include casinos (primarily for foreigners, with one exception for locals), state-run lotteries, horse racing, cycling and motorboat racing, and government-controlled sports betting (Sports Toto).
Type of Gambling
Tax Rate
Basis of Taxation
Notes
Casinos (Foreigners & Kangwon Land)
10% - 20%
Gross Gaming Revenue (GGR)
Most casinos pay a 10% tax on GGR, but Kangwon Land (the only casino open to locals) is subject to a higher effective rate due to additional contributions to special funds.
Horse Racing
16% - 20%
Turnover (Total Bets)
Tax is deducted at source from betting tickets.
Cycle & Motorboat Racing
20%
Turnover (Total Bets)
Tax is deducted at source from betting tickets.
Sports Toto (Sports Betting)
22%
Gross Gaming Revenue (GGR)
Operated as a state monopoly; proceeds fund sports development.
Lottery
35% (approx.)
Gross Ticket Sales
Portion of ticket sales goes directly to government funds.
Basis for Taxation
Casinos: Tax is generally levied on Gross Gaming Revenue (GGR), which is the difference between the amount wagered and the amount paid out to players as winnings.
Horse Racing, Cycle & Motorboat Racing: Tax is based on total turnover (the sum of all bets placed), deducted directly from betting tickets.
Sports Toto: Tax is applied to GGR, with the operator remitting a set percentage to the government.
Lottery: Tax is effectively a share of total ticket sales, with a fixed portion allocated to government funds.
Tax Reporting and Payment Procedures
Gambling operators are required to file regular tax returns (monthly or quarterly, depending on the specific activity and regulatory requirements) with the relevant authority—such as the Ministry of Culture, Sports and Tourism for casinos, the Ministry of Agriculture, Food and Rural Affairs for horse racing, and the Ministry of Strategy and Finance for lotteries.
Taxes are typically withheld at source (for betting activities) or calculated on GGR for casinos and sports betting, and remitted directly to the government within the stipulated deadlines.
Operators must maintain detailed records of all transactions, wagers, payouts, and revenue, subject to audit and inspection by regulatory authorities.
Tax Incentives, Exemptions, and Special Provisions
There are no broad tax exemptions for gambling operators in South Korea. However, Kangwon Land Casino, which is the only casino permitted to serve locals, is subject to special provisions: in addition to the standard gaming tax, it must make substantial contributions to government-designated funds (such as the Abandoned Mine Fund).
State-run gambling operations (such as Sports Toto and the national lottery) are structured so that a significant portion of proceeds is earmarked for public interest projects, sports promotion, or social welfare, rather than for-profit distribution.
No notable tax incentives or reductions are available for private gambling operators, as most legal gambling is either state-run or strictly limited to specific, regulated entities.
Prohibited Individuals
Age Restrictions and Identification Requirements
The minimum legal age for participating in any form of gambling in South Korea is 19 years old. This applies to casinos, sports betting, lotteries, and all other regulated gambling activities.
Casinos and betting operators are required to verify the age and identity of all patrons before granting entry or allowing participation. This is enforced through mandatory ID checks at the entrance and during registration for betting platforms.
Online gambling platforms, where permitted, must implement robust digital verification processes to prevent underage access and identity fraud.
Prohibited Gambling Activities and Game Restrictions
Most forms of gambling are prohibited for South Korean citizens. The only exceptions are government-approved lotteries, limited sports betting (such as Sports Toto and horse racing), and betting at Kangwon Land Casino, the sole casino accessible to locals.
All other land-based casinos are restricted to foreigners only; South Korean citizens are not permitted to enter or gamble at these venues.
Online casino gambling is strictly forbidden for all residents. Access to international online gambling sites is blocked by internet service providers, and financial institutions are prohibited from processing gambling-related transactions.
Participation in unauthorized gambling activities, including illegal online betting and gambling abroad, is subject to severe penalties, including fines and imprisonment.
There are strict limits on the maximum amount that can be wagered per bet in legal sports betting, and maximum winnings are also capped to discourage excessive gambling.
Advertising and Marketing Limitations
Advertising of gambling services is heavily restricted. Only government-approved gambling products (such as the national lottery and Sports Toto) may be advertised, and such advertising must comply with strict content and placement rules.
Advertisements must not target minors or vulnerable groups and are required to include responsible gambling messages and information about support services for problem gambling.
Promotional activities that encourage excessive or impulsive gambling are prohibited. This includes offering incentives, bonuses, or misleading information about odds and potential winnings.
Online advertising of unauthorized gambling services is strictly monitored and subject to immediate removal and legal action.
Responsible Gambling and Player Protection Measures
All licensed gambling operators must implement responsible gambling measures, including self-exclusion programs that allow individuals to voluntarily ban themselves from gambling venues or platforms.
Operators are required to provide information about the risks of gambling and available support services, including 24/7 helplines and counseling through organizations such as the Korea Center on Gambling Problems.
Staff at gambling venues must undergo mandatory training on responsible gaming and identifying problem gambling behaviors.
Regular monitoring of gambling activities is conducted to detect and intervene in cases of excessive or problematic gambling.
Spending limits and time restrictions are enforced on legal betting platforms to help prevent gambling addiction and financial harm.
Geographic and Location Restrictions
Of the approximately two dozen casinos in South Korea, only Kangwon Land Casino is open to South Korean citizens; all others are strictly foreigner-only establishments.
Kangwon Land Casino is located in a remote area of Gangwon Province, intentionally distanced from major population centers to limit accessibility for locals and mitigate social risks associated with gambling.
Sports betting and lottery outlets are licensed and regulated, with physical locations monitored to prevent unauthorized access and underage participation.
Online access to gambling services is tightly controlled, with government agencies actively blocking illegal sites and monitoring financial transactions for gambling-related activity.
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Timeline
Year/Date
Event
1967
Tourism Promotion Act enacted, legalizing casinos for foreigners and establishing the regulatory framework for land-based casinos in South Korea.
1995
Special Act on the Assistance to Development of Abandoned Mines passed, paving the way for the opening of Kangwon Land Casino, the only casino accessible to South Korean citizens.
1997
National Sports Promotion Act introduced, legalizing and regulating sports betting through the state-run Sports Toto system.
2000
Kangwon Land Casino opens, becoming the first and only casino where South Korean citizens are permitted to gamble legally.
2007
National Gambling Control Commission (NGCC) established to oversee and regulate all forms of legal gambling, promote responsible gaming, and address gambling addiction.
2017
Amendments to the National Sports Promotion Act and the Bicycle Racing Act further regulate offline sports betting and racing activities.
2018
Significant increase in government action against illegal online gambling, including mass website blockings and enforcement efforts.
2025
Major industry and government stakeholders declare 2025 a pivotal year for gambling reform, with a focus on tackling illegal gambling and youth gambling issues, signaling potential regulatory changes and increased oversight.
Requirements
Software Certification and Technical Standards
All gambling software used by licensed operators must comply with the technical standards set by the relevant regulatory authority for each vertical (e.g., casino, sports betting, lottery).
Software must undergo certification by approved testing laboratories to ensure fairness, randomness, and integrity of games and betting systems.
Technical measures, such as IP blocking and geolocation, are required to prevent access by unauthorized users and to block illegal gambling websites.
Operators are required to implement robust cybersecurity protocols to protect systems from unauthorized access and manipulation.
Online betting systems must be capable of real-time monitoring and reporting to detect and prevent illegal or suspicious activities.
Data Protection, Privacy Measures, and Server Location Requirements
Operators must comply with South Korea’s Personal Information Protection Act (PIPA), ensuring that all customer data is collected, processed, and stored securely.
Personal and financial data must be encrypted both in transit and at rest, using industry-standard encryption protocols.
Operators are required to implement access controls and audit trails to monitor and restrict access to sensitive data.
All gambling-related data, including player records and transaction logs, must be stored on servers located within South Korea to facilitate regulatory oversight and compliance with local data residency requirements.
Data retention policies must align with regulatory requirements, ensuring records are securely maintained for a specified period and securely deleted thereafter.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Operators must implement comprehensive AML programs in accordance with the Financial Services Commission’s regulations.
KYC procedures require verification of customer identity before allowing participation, including validation of government-issued identification and age verification (minimum age: 19).
Operators must monitor transactions for suspicious activity, report large or unusual transactions to the relevant authorities, and maintain records of all such reports.
Ongoing customer due diligence is required, including periodic reviews of player accounts and enhanced scrutiny for high-risk or politically exposed persons (PEPs).
Staff must be trained in AML and KYC protocols, and operators must maintain written policies and procedures for compliance.
Financial Reporting, Auditing Standards, and Record-Keeping Requirements
Operators are required to maintain accurate and up-to-date financial records, including detailed logs of all wagers, payouts, deposits, and withdrawals.
Regular financial reporting to the relevant regulatory authority is mandatory, following prescribed formats and timelines.
Annual independent audits of financial statements and operational systems are required to ensure compliance and transparency.
Operators must retain all records related to gaming transactions, customer accounts, and compliance activities for a minimum period as specified by law (typically several years).
Systems must be in place to allow regulatory authorities immediate access to records for inspection or investigation purposes.
Technical Implementation Requirements for Responsible Gambling Tools
Operators must integrate responsible gambling features into their platforms, including self-exclusion options and spending limits for players.
Systems must enforce mandatory age verification and block access to underage users.
Operators are required to display responsible gambling messages and provide access to support resources, such as helplines and counseling services.
Technical controls must be in place to monitor player behavior for signs of problem gambling, with automated alerts and interventions where necessary.
Operators must provide tools for players to set deposit, loss, and session limits, and ensure these controls are enforced by the gaming system.
Sources
Primary Regulatory Authorities
National Gambling Control Commission (NGCC) – Central regulatory authority for gambling oversight, responsible for policy, supervision, and responsible gambling programs.
Contact: +82-2-6956-7000 | 13F, 20, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul, 07326, Republic of Korea
Ministry of Culture, Sports and Tourism (MCST) – Regulates casinos and issues casino licenses, oversees tourism-related gambling activities.
Contact: +82-44-203-2000 | Government Complex-Sejong, 388, Galmae-ro, Sejong Special Self-Governing City, Republic of Korea
Korean Law Information Center (law.go.kr) – Official government portal for all South Korean legislation, including the Criminal Act, National Sports Promotion Act, Tourism Promotion Act, and Speculative Acts Regulation Act.
Responsible Gambling and Player Protection
Korea Center on Gambling Problems (KCGP) – Official government-supported organization for gambling addiction prevention, counseling, and support.
24/7 Helpline: 1336 (within Korea)
Navigate Gambling Regulations Successfully
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Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
