South Korea has seen illegal online gambling increase ten-fold since 2004 to the amount of around $25.5 billion, say the Korean Institute of Criminology. The Korean Racing Authority, who are the legal agency in control of the horse-racing industry in the country, are rating the ratio of illegal to legal gambling on the sport at over 4:1.
While the Chinese, who are apparently responsible for anything that goes wrong, have been blamed, so have the difficulties in regulating the industry online for the rise in a crime which not even a sentence of 5 years in prison can prevent. The KRA have not mentioned, however, the fact that legal gambling is taxed at 27% as a possible reason for why punters might rather work with outside agencies.
There are 32 betting outlets in South Korea, all stringently controlled, and we hope that one of the freer nations in the far east outside Japan might take the hint and realise that the people are always right. China tried to control the internet and continue to fail, lets hope South Korea don't try and do the same.
I don’t see South Korea succeeding in controlling illegal gambling. For so much money to be regulated is just impossible. Perhaps more betting outlets?
Which such a high tax rate I would also prefer the illegal method, trying to take so much winnings is definitely the cause.