Kangwon Land joins illegal gambling crackdown near casino resort
South Korean authorities and staff from Kangwon Land Inc, operator of South Korea’s only casino open to local players, participated in a joint crackdown targeting four suspected illegal gambling venues near the Kangwon Land resort in Gangwon Province.
Some staff from Kangwon Land Inc joined a Tuesday crackdown targeting four venues allegedly involved in illegal gambling activities in Sabuk town, Jeongseon County, home to the Kangwon Land resort and South Korea’s only casino open to local players.
The operation involved 25 personnel from the National Gambling Control Commission, the Game Rating and Administration Committee (GRAC), the Gangwon Provincial Police, Jeongseon police, the Korea Racing Authority, and Kangwon Land Inc.
According to the company, the venues identified by the joint crackdown team included “illegal speculative gaming establishments and unlicensed gaming rooms disguised as private homes”.
Authorities confiscated 18 electronic devices, including internet-connected personal computers and tablets. Further details regarding the alleged activities were not disclosed.
Six detained in raid
Local media reports said the venues were allegedly exchanging points earned through illegal games for cash. Police reportedly detained six people during the operation, including a 67-year-old individual described by local media as the alleged “owner” of the operation. The individuals are suspected of violating South Korea’s Game Industry Promotion Act.
Kangwon Land interim chief executive Nam Han-gyu said cooperation between agencies was already producing visible enforcement results.“The establishment of a cooperative system with relevant agencies is leading to tangible results in crackdowns.”
He added, “We will continue to fulfill our social responsibility as a public enterprise by consistently carrying out response activities to establish sound social order, such as monitoring illegal speculative activities and conducting onsite crackdowns through close information sharing.”
The company also operates a public reward programme that encourages members of the public to report suspected illegal gambling activities.
Second operation this year
Kangwon Land said the Sabuk raid marked the second multi-agency operation this year aimed at uncovering suspected illegal gambling activity.
The earlier operation took place in Gunpo, Gyeonggi Province, south of Seoul, where Gunpo police and the National Gambling Control Commission identified another site allegedly connected to illegal gambling.
The latest crackdown follows broader enforcement efforts against illegal gambling in South Korea. In April this year, Kangwon Land signed a cooperation agreement with GRAC and Gangwon police aimed at combating illegal online gambling activities.
Under the agreement, the parties agreed to share intelligence, coordinate enforcement activities, and work together on public awareness and player protection measures.
At the time, GRAC Chairman Seo Tae-geon said: “Illegal gambling directly leads to user harm.”
“Real results can only be achieved when institutional oversight, law enforcement and on-site protection work in tandem. Through this agreement, we will integrate our respective functions to strengthen cooperation and create a safe, healthy gaming environment for the public.”
The move reflects broader concerns in South Korea about the growth of illegal online gambling and speculative gaming activities.
Financial pressures continue
The crackdown also comes during a difficult financial period for Kangwon Land. The company recently reported weaker first-quarter earnings despite modest revenue growth. Net profit for the January-to-March period fell 46.8 per cent year-on-year to KRW39.67 billion (US$26.3 million).
Revenue for the quarter reached KRW378.9 billion ($280 million), up 3.4 per cent from the same period last year. Gaming revenue rose 4.3 per cent year-on-year to KRW330.4 billion ($244 million), accounting for more than 87 per cent of total sales.
Gross gaming revenue increased 4.5 per cent to KRW360 billion ($266 million), supported by higher gaming volumes following increased betting limits introduced in 2025.
However, rising operational costs weighed heavily on profitability. Total expenses increased 6.2 per cent year-on-year to KRW310 billion ($229 million). Wage costs also rose, partly due to a KRW2.4 billion ($1.8 million) voluntary retirement payout during the quarter.
Taxes and levies linked to gaming revenue increased 3.7 per cent to KRW93.2 billion ($69 million). At the same time, depreciation costs jumped 15.7 per cent to KRW22.2 billion ($16 million) amid ongoing spending on infrastructure and safety improvements.
The company also reported a sharp decline in income from financial assets, which fell 81.9 per cent to KRW4.2 billion ($3.1 million). In addition, Kangwon Land booked an extra loss of KRW19.2 billion ($14 million) in other earnings.
Kangwon Land is continuing with major expansion plans despite weaker earnings. The operator has set aside KRW145.4 billion ($107 million) in capital expenditure this year, including investment in VIP gaming upgrades, a second casino, and internal system modernisation.
Alongside its enforcement and compliance efforts, Kangwon Land is continuing with a redevelopment project approved in 2024 that includes a second casino, resort upgrades, and a new KRW2.5 trillion (US$1.85 billion) luxury hotel. The first phase is expected to be completed in 2028.
AML failures added to scrutiny
Earlier this year in April, South Korea’s Financial Intelligence Unit imposed a KRW564 million (US$382,400) fine on Kangwon Land Inc over failures to properly verify or report 11 casino transactions between 2022 and 2024 in line with anti-money laundering requirements.
The regulator also found the casino failed to retain nearly 30,000 financial transaction records and more than 43,000 customer identification documents for the legally required minimum period.
According to the Financial Intelligence Unit, Kangwon Land also failed to conduct due diligence to identify non-members in nearly 68,000 cases.
The regulator ordered the company to strengthen its know-your-customer procedures and improve financial reporting controls as part of wider compliance reforms.
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