In August this year the government in South Korea doubled tax on casino operators to 20% at the recommendation of the National Gaming Control Commission, a body set up in 2007 to oversee the gaming industry and protect the Korean public from gambling. It is intended to limit annual gambling revenue to 0.58% of GDP from its present 0.67%, and all sectors of the gaming industry are expected to feel the effect. In September the racing industry was expressing concern that it would be particularly affected by keeping within a revenue quota or facing tough penalties.

The NGCC is composed of fifteen members, ten representatives of civil groups – many openly hostile to gambling activity – and five government officials – mostly from the Ministry of Culture, Tourism and Sport that controls the casinos. Little wonder that the racing industry is worried that its voice will not be heard, but the changes will hit the entire gaming industry in Korea. Kangwon Land, the only casino where Koreans can gamble, has already seen its shares fall sharply this year.

Keeping annual gambling revenue no higher than $12.4 billion not only affects the casinos and horseracing. Lotteries and the popular cycle and motor boat racing will also have curbs on betting activity. Other measures to reduce gambling by Koreans are expected, including a card system to track their gambling activity. Online betting services are likely to be abolished until 2011 in a series of tougher regulations to be imposed on the gambling industry. (E-11.19.08)

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