Korea’s Busts, Japan’s Crackdowns, a Leadership Shake-up and more

Recently, South Korea scored a significant victory by busting an illegal gambling ring valued at around $384 million (approximately 530 billion won). Active for nearly five years, this operation utilized a sophisticated network of websites featuring live female dealers to attract male players, generating roughly $20 million (27.1 billion won). Authorities arrested 32 individuals, with 13 currently in custody. The suspects face charges under the National Sports Promotion Act, underscoring Korea’s serious stance against illegal betting. Although based in Korea, the operation had ties across the region, including the Philippines, Vietnam, and Cambodia, demonstrating its extensive reach. This crackdown highlights Korea’s dedication to safeguarding its citizens and combating illegal gambling at every level.

Across the sea, Japan is stepping up efforts to curb illegal online gambling by urging eight countries—Canada, Costa Rica, Georgia, Malta, Anjouan Island (Comoros), Curaçao, and the UK Crown territories of the Isle of Man and Gibraltar—to block their citizens from accessing offshore casino sites. Despite some legal domestic betting, Japanese players wagered an estimated $45 billion (around JPY 6.45 trillion) on offshore sports betting in 2024—five times more than the amount bet on local online casinos. This substantial volume has prompted lawmakers to tighten regulations, with recent bills passed by Japan’s House of Representatives. Most offshore sites are licensed in jurisdictions like Curaçao, making them largely unregulated.

On the corporate front, DigiPlus has announced a leadership shake-up with Tommy Hu stepping in as CEO and Rick Li taking on the role of Chief Digital Officer. This move, ratified at the June 19 board meeting, sees Hu succeeding former President Andy Tsui Kin Ming, who remains involved to ensure a smooth transition. DigiPlus, also oversees slot arcades at VIP clubs under PAGCOR regulation. Hu, with over 20 years of experience, has been credited with transforming DigiPlus into a major digital entertainment player and launching innovative products like BingoPlus. His immediate goal is to expand into regulated markets such as Brazil and Singapore. Li, with over 15 years of fintech experience at Ant Group, will lead digital innovations to strengthen DigiPlus’s technological edge.

The Hong Kong government is pushing to expand horse racing broadcasts managed by the Hong Kong Jockey Club (HKJC). Proposed plans include increasing simulcast races from 25 to 40 in 2025/26 and up to 55 in 2026/27. They also aim to boost non-local race days from 37 to 53 next season, eventually reaching 70 days, to stimulate betting and enhance the industry’s stature. This follows a 135% increase in local bets on simulcast races, totaling HK$10.59 billion (about US$1.35 billion) between 2019 and 2024. While not explicitly aimed at elevating Hong Kong’s international reputation, these measures are part of efforts to promote legal betting and crack down on illegal online gambling. The expansion could generate an additional HK$1.82 billion (roughly US$232 million) in betting duties, pending new legislation after current licenses expire in August. The goal is to strengthen Hong Kong’s position as a premier international horse racing hub and curb illegal gambling.

In Thailand, ongoing political turmoil is delaying plans to legalize entertainment complexes with casinos, a key component of its economic growth ambitions. A leaked phone call between Prime Minister Paetongtarn Shinawatra and former Cambodian leader Hun Sen, containing disparaging remarks about a Thai military officer, sparked protests and led to the withdrawal of the Bhumjaithai Party from the ruling coalition. This instability threatens the passage of a crucial bill that would establish Thailand as a regional entertainment hub with casino resorts, expected to generate over $1 billion annually. Without political stability, the nation’s ambitious tourism and economic development plans face significant delays.

Meanwhile, Cambodia’s Prime Minister Hun Manet has publicly denied allegations that his country hosts illegal online gambling operations. Speaking at the Cambodia Scouts’ assembly, he suggested that neighboring countries are blaming Cambodia to distract from their own issues. Despite this, the UNODC has identified Cambodia as a major scam hub, with Sihanoukville singled out for cybercrime and illicit activities. The Prime Minister’s nephew has also been linked to online scams, though Hun Manet denies these accusations. Cambodia continues efforts to combat illegal gambling and cybercrime, but international perceptions remain complicated amid regional tensions and accusations.

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