South Korea's National Gambling Control Commission Act was amended on January 18, 2022, giving a legal basis to the levy that funds gambling addiction prevention and treatment, according to the National Gambling Control Commission1. The provision cited is Article 14, Section 2 of the Act1.
The commission's published account of its policy and system describes how the levy is tied to the Korea Problem Gambling Agency, which it says was founded in August 2013 "in order for the commission to operate and efficiently manage the levy, and also promote relevant services"1. The commission states that the legal basis for the levy now rests on the amended Article 14, Section 21.
The commission also sets out how the money is meant to be allocated. Under its sales CAP system, the preliminary CAP for each gambling business is set according to that business's share of total gambling turnover in the previous year, and a business that exceeds its CAP in the previous year has its CAP reduced by 100 percent of the excess portion1. The commission says the prevalence rate of problem gambling is treated as 30 percent, and each business's excess or deficiency rate is converted into permilles, one thousandth, then added or deducted1. The results of the soundness evaluation are applied to both the sales CAP and the levy1.
The commission describes the levy's purpose in its own words:
"This led to the founding of the Korea Problem Gambling Agency (KPGA) in August, 2013 in order for the commission to operate and efficiently manage the levy, and also promote relevant services."
The commission's account of the CAP traces the target back to the first National Master Plan for Responsible Gambling in 2008, which set the proportion of gross gaming yield to GDP at 0.58 percent by 20131. The second National Master Plan in February 2014 initially set the same 0.58 percent figure, but it dropped to 0.54 percent the following month because of an amendment to the System of National Account1. The commission also records that the portion of total turnover to GDP fell from 0.64 percent in 2008 to 0.62 percent in 20111.
Separately, the commission describes limits on how much a customer may buy. Individual laws or internal rules of each gambling business set an upper limit on purchase or betting, which the commission says limits gamblers to buying up to KRW 100,000 of tickets and lottery tickets, or KRW 300,000 at Kangwon Land1. It states that no system previously checked whether customers respected that limit, and that the electronic players' card system was therefore considered necessary1. Card readers were installed in July 2010 on some gambling premises, and a new pilot operation began in July 20121. For horse, bicycle and motorboat racing, 10 percent of off-track betting parlors implemented the system, with two types of pilot: venues with a complete ban on cash betting, and those allowing small wagers under KRW 30,000 or KRW 50,0001.
What it means for players
The amendment concerns how the commission funds gambling addiction treatment and prevention work, not the legality of any game or the size of any bet. The purchase limits described by the commission, KRW 100,000 generally and KRW 300,000 at Kangwon Land, are set by individual laws and internal rules of each gambling business rather than by this amendment1. The commission's account does not state whether the amendment changes the levy rate, the amount collected, or which operators pay it, and no such change has been reported1. For anyone gambling in South Korea, the practical effect described is that the funding stream behind counseling, prevention campaigns and self-control programs has an explicit statutory basis1. The commission lists signs of a gambling problem among the areas its evaluation criteria cover, counting counseling sessions provided to problem gamblers, addiction prevention campaigns conducted, and applicants for self-control programs1.
What happens next
The commission's published material does not set out any further steps tied to the January 18, 2022 amendment, and none have been reported1. Its account of the electronic players' card system records that a meeting of experts from related organizations was to be launched in 2019 for regular discussions to review progress on the card system and improve measures to protect players from gambling harms1.
Sources1 sources
- The National Gambling Control Commission, ngcc.go.kr
