South Korea's gambling crackdown wipes out a third of demand
South Korea’s iGaming market has seen a sharp decline in player engagement after authorities intensified action against illegal gambling networks, payment channels and offshore betting platforms. New data from the Blask Index shows demand fell from a peak of 1.12 million in October 2025 to 703,700 in April 2026, marking a 37 per cent drop within six months.
The decline coincides with a number of South Korean agencies stepping up their enforcement actions against illicit gambling enterprises, such as payment gateway companies, offshore betting organisations, and imitation websites. Tighter oversight of financial transactions connected to gaming activity is another factor contributing to the reduction.
Strict gambling laws
South Korea operates one of the strictest gambling systems in Asia. Citizens can legally access only government-approved lotteries, limited sports betting through Sports Toto and Kangwon Land, the country’s only casino open to locals. Online casino gambling remains illegal for residents.
Despite the restrictions, demand for offshore gambling services has grown over the years. Government estimates previously valued the country’s illegal gambling market at 49 trillion won, or around $37 billion, representing a 91 per cent increase since 2008. During the same period, the legal gambling sector grew by 46 per cent.
More recent estimates placed the illegal gambling market at 96 trillion won, equivalent to around $65 billion. Authorities also reported growing participation among younger users. Official figures showed that 4 per cent of young people had engaged in illegal gambling activities.
Police records highlighted the rise in gambling-related offences involving minors. Authorities recorded 478 criminal cases linked to youth gambling in 2024. That number increased to 777 cases in 2025, marking a 62 per cent rise year-on-year.
Major target on payment firms
The decline in iGaming demand began shortly after South Korea’s Financial Supervisory Service launched enforcement action against payment gateway companies in July 2025.
Regulators imposed serious penalties on six payment processing firms after investigations found links to illegal gambling operators, voice phishing groups and narcotics networks. The FSS identified suspicious activity through monthly payment transaction reports that companies must submit under local financial regulations.
The launch of the English Premier League and LaLiga seasons in August created a temporary rise in engagement. However, the increase did not continue beyond the short term.
October peak followed by sustained decline
South Korea’s iGaming demand reached its highest point in October 2025. The Blask Index climbed to 1.12 million during a month that included the Korea Baseball Organization postseason, the League of Legends World Championship and the Chuseok public holiday period.
After October, the market entered a steady downward trend. The monthly figures recorded by Blask showed demand falling to 997,400 in November 2025 and 959,000 in December. The decline continued into 2026, with January recording 903,800 and February falling further to 800,900.
March saw a small recovery to 848,500 before the index dropped again to 703,700 in April 2026, the lowest figure recorded during the period.
Site blocking and arrests intensified pressure
Early in 2026, South Korean officials increased their enforcement efforts. In an effort to shorten the time needed to take down illicit gambling platforms from the internet, the Broadcast and Media Content Commission implemented quicker website blocking capabilities.
Kangwon Land also increased action against websites using its branding to direct users towards offshore gambling operators.
At the same time, investigators dismantled a Cambodia-based gambling network worth 44 billion won. The operation formed part of wider cross-border enforcement efforts targeting offshore groups serving South Korean customers.
These measures added pressure to an already declining market and contributed to the continued fall in player engagement.
New legislation targets gambling-linked accounts
South Korea is preparing additional regulatory changes as authorities continue efforts to disrupt illegal gambling activity.
Financial Intelligence Unit (FIU) of South Korea is currently revising the Act on Reporting and Using Specified Financial Transaction Information (FTI). Proposed amendments would allow authorities to suspend accounts suspected of being linked to illegal gambling without requiring a court order.
Under the current system, investigators must first obtain court approval before freezing accounts. Officials argue this process slows enforcement actions and allows criminal groups time to move funds.
The FIU is expected to submit the amendment to the National Assembly in September 2026.
Authorities also plan to strengthen monitoring of cryptocurrency transactions. Proposed measures include expanding oversight to smaller transfers and adding international criminal groups to prohibited transaction lists.
The government has also formed a joint task force ahead of South Korea’s next Financial Action Task Force mutual evaluation, scheduled for March 2028.
Sporting events failed to reverse the decline
Major sporting and esports events continued throughout the 12-month period covered by the Blask Index. These included the Premier League, LaLiga, K League, KBO postseason, League of Champions Korea and the League of Legends World Championship.
The Blask Index recorded an average figure of 918,000 and a median of 937,000 between September 2025 and April 2026. Despite temporary spikes linked to major tournaments and holidays, the overall direction remained negative from the October peak through to the April low point.
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