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Authorities in South Korea have uncovered a massive illegal gambling operation that was targeting teenagers through gaming cafes. According to the Jeju Provincial Police Agency, the network reportedly handled more than $15 million in illegal bets, using adult PC gaming cafes and private villas near schools as gambling hubs.
The police confirmed the arrest of 21 individuals, including a man in his 40s believed to be the main operator. During the raid, officers seized 250 million won (around $170,000) in cash and other illegal profits.
Gambling Sites Operated Near Schools
The investigation revealed that the group secretly transformed PC bangs (gaming cafes popular in South Korea) into gambling spots. These locations were often close to schools, making it easy to attract younger players.
Police found that the illegal sites processed 22.6 billion won (about $15 million) in bets. Three main websites were used to host the gambling activities, which ran for months before being discovered.
Teens Trapped in Illegal Loans
One of the most shocking discoveries was that the group also loaned money to high school students at extremely high interest rates reaching up to 650%.
At least five teenagers were involved, including one who reportedly borrowed 11 million won ($7,672) just to continue gambling. The three gambling sites linked to these minors had handled around 9.2 billion won ($6.4 million) in bets.
Operating such illegal gambling sites in South Korea can lead to up to seven years in prison or fines as high as 70 million won ($50,000).
A police official from Jeju stated,
“The crackdown on illegal gambling sites will continue. We will maintain a strict stance, especially when minors are involved. Our focus will be not only on arresting the operators but also on recovering all illegal profits.”
Talks Continue on Legal Esports Betting
While most online gambling remains banned in South Korea, there are growing discussions about legalizing esports betting under government regulation. Currently, the only legal betting option is run by the Korea Sports Promotion Foundation (KSPO), covering sports such as football, baseball, and basketball.
A proposed government-backed system called “Esports Toto” aims to include esports in legal betting markets, allowing fans to bet on professional gaming matches under strict controls.
The Korean Esports Association (KeSPA) has voiced support for this idea, suggesting that it could boost the nation’s digital economy and support professional esports players.
Korea’s Growing Esports Industry
Earlier this year, the country launched the Korean Esports League (KEL) to strengthen its competitive gaming ecosystem. The esports sector in South Korea generated $69 million in 2024 and is projected to grow to $237 million by 2030.
Teenagers are driving much of this growth. Many spend hours in PC bangs, watching or playing competitive games. A recent survey revealed that over 70% of South Korean youth have watched at least one esports event online.
However, the recent illegal gambling case also highlights the darker side of gaming culture, showing how easily young players can fall into risky online traps.
Also Read: Georgia Sports Betting Legal Status 2025: Still Illegal
