South Korea sees youth gambling rise 74% MoM amid AML debate
South Korea is facing growing concerns over online gambling after authorities reported a sharp increase in youth gambling cases. New figures from the Korean National Police Agency show that reports of youth online gambling rose by 74 per cent during the second month of a nationwide voluntary reporting programme.
At the same time, South Korea’s proposed anti-money laundering (AML) reforms could require casinos to collect personal and transaction data from virtually every patron. Industry representatives have warned that proposed AML rule changes could significantly reduce casino visitation and gaming revenue across the country.
The two developments come as South Korea steps up efforts to tackle gambling-related harm, financial crime and money laundering risks across both online and land-based gaming sectors.
Youth online gambling reports rise sharply in South Korea
According to police data cited by Yonhap News Agency, authorities received 512 reports of youth online gambling during the second month of the reporting initiative, up from 294 reports in the first month. Between May 18 and mid-July, a total of 806 cases were recorded. Of those, 629 reports came directly from young gamblers, while 177 were submitted by parents or guardians.
The latest figures add to concerns that youth gambling is becoming a growing social issue in South Korea. In 2025, lawmakers reported that a record 4,144 teenagers received treatment for gambling addiction in 2024, more than triple the number recorded in 2020. Gambling-related juvenile arrests also increased sharply, rising from 76 in 2022 to 631 in 2024. Authorities have linked adolescent gambling to mounting debts, family conflict, illegal lending and crime, prompting calls for stronger prevention measures and earlier intervention in schools.
Cases reveal links to illegal lending and theft
Authorities said several reports highlighted links between youth gambling, illegal lending and theft. In one case, an 18-year-old reportedly borrowed KRW5 million (about US$3,400) from more than 10 illegal lenders to finance online gambling activities. The loans allegedly carried annual interest rates of 200 per cent, with the teenager later reporting threats and unlawful debt collection practices.
Another case involved a 14-year-old who deposited KRW26 million (about US$17,700) into online gambling platforms and allegedly borrowed KRW2 million (US$1,400) from 41 classmates. Police also received a report involving a 14-year-old who allegedly withdrew KRW30 million (US$20,400) from his father’s bank account to fund gambling activities.
The Youth Cyber Gambling Voluntary Reporting Programme is open to individuals under the age of 19 and their guardians. Participants may be referred to addiction treatment services, psychiatric support and debt-adjustment programmes designed to address gambling-related harm.
South Korean authorities plan to continue operating the initiative until August 31, with reports accepted through the country’s 117 school violence reporting and counselling service.
South Korea considers stricter AML controls for casinos
While authorities tackle youth online gambling, South Korea’s Financial Intelligence Unit (KoFIU) is also pursuing tougher anti-money laundering measures for the casino industry.
Industry sources told GGRAsia that proposed amendments to the Act on Reporting and Using Specified Financial Transaction Information could require casinos to record transaction details and personal information for patrons regardless of wagering amounts. If adopted, the changes would mark a major expansion of AML compliance requirements for South Korea’s casino sector.
Proposed rules could require identification for all casino transactions
According to casino industry sources cited by GGRAsia, the proposed framework could require operators to record information for patrons purchasing even a single KRW1,000 chip, one of the lowest chip denominations available.
Under current regulations, casinos must record player information and report transactions to KoFIU when casino buy-ins reach KRW10 million (about US$6,800) or more.
Kangwon Land, South Korea’s only casino open to local residents, already applies a lower threshold of KRW3 million (about US$2,000) for recording transaction details.
South Korea introduced currency transaction reporting requirements for casinos and financial institutions in 2006, when the threshold was KRW50 million (about US$34,000). The limit was later reduced to KRW30 million (about US$20,400) in 2008, KRW20 million (about US$13,600) in 2010 and KRW10 million (about US$6,800) in 2019.
Industry warns of revenue impact from AML proposals
Casino operators have expressed concerns that stricter identification requirements could discourage customers from visiting gaming venues. A representative from Kangwon Land told GGRAsia that the proposed amendments would effectively require casinos to maintain detailed records on all patrons, including dates of visits, gaming activity, and chip and cash transactions. The information could be provided to KoFIU upon request.
According to a survey conducted by Kangwon Land involving 1,000 casino patrons, around 20 per cent of respondents said they would be unlikely to return if personal and financial information had to be provided regardless of transaction size.
The company estimates that the resulting decline in visitation could reduce gross gaming revenue by 19.64 per cent. Based on Kangwon Land’s 2025 performance, the operator estimates the proposed AML measures could reduce annual gross gaming revenue by approximately KRW330 billion.
Local communities fear economic consequences
Community groups in the Kangwon Land region have also raised concerns about the potential economic impact of stricter AML regulations. Local media reports suggest annual contributions to the Abandoned Mine Area Development Fund, which typically total around KRW180 billion, could fall to approximately KRW130 billion if casino revenue declines.
Community stakeholders have also warned that dividend distributions linked to casino operations could fall by nearly 50 per cent. As a result, local groups are reportedly petitioning KoFIU to reconsider the proposed AML amendments.
Asian iGaming returns to the City of Dreams. From 30 November to 2 December 2026, SiGMA South Asia unites 3,500+ industry leaders, innovators and decision-makers in Colombo to shape the future of gaming.
