Gambling
in the Republic of Korea
will turn up a poker game or two if one were looking for a poker
game. Many of the casinos cater to poker players as the game
is gaining acceptance here in Korea as its popularity grows.
South Korea's myriad Internet cafes used to be a choice youth hangout in this ultra-wired country. The cafes soon became the cradle of the nation's booming online gambling industry that now threatens to overwhelm video console games. Gaming and gambling Just a few years ago, the cafes known as PC baangs (PC rooms) were full of teenage boys slaying virtual beasts in the virtual universe of multiplayer online games, standing next to grown-ups staring intently at Asian checker screens, contemplating their next move. Now the industry faces a formidable competitor - adults-only video casino bars, which are thriving across the country, where gambling is mostly illegal. Only one of the country's 17 legal casinos allows locals to gamble. Nevertheless, money-betting video games have mushroomed in recent years, first with virtual horse races and then video slot machines. While no real cash is allowed to change hands, the government allowed gambling arcades a huge loophole by letting them give out "gift certificates," which could then be easily exchanged for cash after payment of a 10 percent commission. A boom soon followed amid suspicions that some operators had begun to unlawfully reprogram games to allow higher payouts and win more gamers. "Here for money" "People come here for money, not for the fun," said a young employee behind the counter at Whale Story, an adult game parlour in Seoul. "PC baangs are for kids," said Park, who declined to be identified by his full name. Located near two high schools and a large apartment complex, the game parlor was named after Sea Story, the popular video slot game it features. In the game, a player inserts cash and watches sharks, whales and other sea creatures spin and stop on the display screen, in hopes of hitting the winning combinations. Other types of gambling cafes - so called adult PC baangs - offer online poker games on specially designed game networks. Some of them have private rooms where people can enjoy adult content on the Web in a confidential setting. No official data is available but police estimate there are approximately 15 000 video casino bars and 4 000 adult PC baangs nationwide. Hit by competition, the number of non-gaming Internet cafes has fallen to 20 000 as of September from a peak of 25 000 in 2004, according to industry data. Some owners have "converted" to more lucrative adult PC baangs. What's worse is the industry's tainted reputation, says Cho Kwang-hyuk, a spokesperson for the Internet PC Association. "Now people give a suspicious look at the entire PC baang industry," Cho said. "We are worried that those adults-only cafes and illegal online gambling dens will force the government to tighten regulations and give everyone a hard time." Government clampdown As video casinos thrive, also on the rise is the number of gambling addicts. Local media estimate that about 3-million out of 48-million South Koreans are believed to have gambling problems. Facing public criticism and accusations of corruption over illegal gambling programs, the government finally stepped in, tightening rules and closing down arcades with illegal games. But operators, most of whom pay $5 000 (about R38 000) - $7 000 per video slot machine, are quick to find a way to skirt the law. After the recent clampdown, Park's game parlour shut down in September - only to re-open in October under a new name. "We re-open, and the same old players are back," he said. The government says it will remain supportive of the game industry in general. "If we come across a game salon that operates with gambling, like at many 'Sea Story' places, we will have those Internet lines blocked," Culture Minister Kim Myung-gon said in a recent interview with Reuters. "But we are always working on a rating system for games that promotes sound computer games." Arcades devoted to Sea Story reportedly had annual sales of more than $15-billion. The culture ministry also said that the value of gift certificates issued in South Korea over the past year totalled 30-trillion won (about R24-billion).
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