South Korean Casino Developments or Lack Thereof

South Korea has a very close relationship with the United States.  It is perhaps because of this relationship that the South Korean government sees fit to mimic America’s ridiculous legal paradox that is the old understanding of the Federal Wire Act.  Just like America, it is perfectly OK to own and operate an online casino or for players to enjoy online casino games; however, it is forbidden to make any money.  This legal confusion has led to the creation of a massive grey market of online casinos throughout South Korea.

In South Korea, the best online casinos use virtual money that can later be redeemed for real money.  Since real money casinos are technically forbidden, the South Korean authorities can’t protect account holders trying to redeem their virtual money from the online casinos.  The conversion of the money from virtual to real is precisely where the market turns black and is characterized by extortion, fraud, intimidation, and blackmail.  The South Korean authorities have taken sporadic action over the last few years against the illegal gambling organizations but have not made a serious dent. 

Furthermore, it doesn’t seem like this weird situation really bothers any lawmakers in Seoul.  The government has taken little to no affirmative action to legislate effective regulatory policies that could protect consumers.  While other countries are actively working to develop a top online casino market, both for tax revenue and consumer protection motives, the South Koreans are keeping the status quo.  Meanwhile, casino reviews are predicting that the Asian market is poised to explode.