South Korean Authorities Dismantle $31 Million Illegal Gambling Network Operating from Cambodia
Overview of the Illegal Gambling Ring Crackdown
South Korean police have successfully dismantled a significant illegal online gambling operation that handled close to 44 billion KRW, equivalent to around 31.6 million USD. This criminal network was operating from Cambodia as a strategy to circumvent South Korea’s strict gambling laws.
Details of the Arrests and Investigation
On September 10, the Cybercrime Investigation Team under the Daegu National Police Agency announced the arrest of ten individuals implicated in managing the illegal gambling ring. Among them was a man in his 30s, identified only as “A.” Seven of those arrested, including A, are currently in custody. The suspects face charges related to breaches of the National Sports Promotion Act.
The gambling operation, active from February 2022 through July the previous year, managed a large volume of betting funds and attracted numerous participants. Alongside the main suspects, authorities have also booked 174 gamblers involved in the activities, although they were not detained.
Organized Operation and Activities
To evade South Korean law enforcement, the group established its base in Cambodia, with members frequently traveling on tourist visas to maintain operations. The organization was highly structured, with distinct roles assigned, including handling of deposits and withdrawals, managing members, and overseeing staff. The network reportedly recruited over 11,000 users, pushing large-scale illegal bets on games such as “Sports Toto” and “Baccarat.”
Length and Scope of the Investigation
Authorities had been monitoring illegal gambling sites and, by November 2023, identified this operation along with their physical office in Cambodia. Arrests were carried out in stages starting July of the following year. Law enforcement seized approximately 270 million KRW (around $194,000) in illicit proceeds during the investigation. Additionally, they secured another 120 million KRW (approximately $86,000) from suspect A’s accounts through pre-indictment asset preservation orders to prevent asset disposal.
Ongoing Efforts and International Cooperation
South Korean authorities are collaborating with Interpol to track down suspects who have fled abroad. The crackdown is scheduled to continue through October 31 and focuses on both the operators and high-stakes gamblers who use offshore gambling sites. This crackdown is part of South Korea’s broader ambition to enhance regulatory measures and reform its gambling laws amid growing competition in the legitimate gambling market within the region.
