The Third National Master Plan for
Responsible Gambling [2019~2023]
Responsible Gambling [2019~2023]
What is the National Master Plan for Responsible Gambling?
The National Master Plan for Responsible Gambling (hereafter “National Master Plan”) is a plan established every five years under Article 16 of the National Gambling Control Commission Act to lead efforts to usher in a responsible and progressive culture in the gambling industry of Korea, to minimize the social ills of gambling addiction and other social problems, and to let gambling recognized as a safe and responsible leisure and entertainment industry through eliminating illegal gambling practices.
The National Master Plan is a midterm plan that will take effect in 2019 toward 4 goals and 14 subordinate tasks to be accomplished by 2023.
The National Master Plan, which will lead the policies implemented for the next five years from 2019 to 2023, is intended to improve upon the achievements and shortcomings of the previous National Master Plans for the last 10 years and provide an analysis of new problems that limit the improvement of the Korean gambling industry.
- Vision
- Goal
To facilitate the development of the gambling industry in a responsible manner and thereby assist the promotion of the Korean entertainment industry
To develop the gambling industry as a positive leisure
To prevent gambling addiction and enhance treatment and rehabilitation services
To eradicate illegal gambling businesses
To strengthen the policy basis for the gambling industry
1-1. Reasonable adjustment of the cap system and strengthening of the practical application thereof
- Reasonably adjust the yearly sales ceiling in response to domestic and international changes
- Strengthen the practical effect of the yearly sales ceiling by introducing legal sanctions toward its breach
Reasonable adjustment of the yearly sales ceiling
- Adjust the yearly sales ceiling to respond effectively to the changes in domestic and international changes
- - [Exclusion of foreigner-only businesses] Foreigner-only businesses that prohibit the entrance of Korean citizens are excluded from the yearly sales ceiling.
- · The ratio of industry-specific annual net turnover for foreigner-only businesses is currently fixed at 10.8%, with the yearly sales ceiling at KRW 1 trillion in 2018.
- - [Changes to yearly sales ceiling] Considering the changes in the global gambling industry, the changes in the economic environment of Korea, and the increasing sales in illegal gambling, the ratio of the annual net turnover to GDP has been adjusted to a level that takes the size of the gambling industry in OECD countries into account.
- · A KRW 1.4 trillion increase in yearly sales ceiling is expected when the 2016 OECD average including gaming machines, 0.619 percent, is applied to calculation
- [Improvements to the cap system] Identify methods for long-term improvement in the current cap system of the gambling industry to respond effectively to the changes.
Improvement to the actual effect of the yearly sales ceiling
- The lack of reinforcements and sanctions which could stop the continued breaching of the yearly sales ceiling weakens the effectiveness of this system
- · For five years from 2013 to 2017, the casinos excluding the foreigner-only venues exceeded the yearly sales ceiling by KRW 553.4 billion in total
- - The introduction of legal sanctions toward the breach of yearly sales ceiling, such as fines, which requires amendment to the National Gambling Control Commission Act, and the reduction of the previous year’s exceeded sales when setting the yearly sales ceiling, which requires amendment of the Enforcement Decree to the National Gambling Control Commission Act
Limitation of the number of gambling venues
- While the National Master Plan seeks to maintain the standard policy of refraining from the building additional Off-Track Betting (OTB) parlors and the total number of businesses to remain at the approved number in 2013*, the limitation on the total number of businesses are to be added or subtracted flexibly in accordance with the changes such as the growth of the gambling industry, with the approval of the committee
- · 26 racing tracks and 73 OTBs
1-2. Promotion of electronic player’s card usage
- Provide an analysis of the effects of the electronic player’s cards and strengthen the preventive effect toward gambling addiction
- Strengthen policies required to expand electronic player’s card usage and strengthen the responsibility of the business owners
Improve the electronic player’s card system and strengthen the preventive effect toward gambling addiction
- Enhancing the system through research on the effects
- - Data on the effect and efficacy of electronic player’s cards will be used for rational improvements and promotion of the electronic player’s card system
- · Improvements of the electronic player’s card system by verifying its effects at the test-operating sites where players have to use electronic player’s card for bets over KRW 50,000
- Utilizing the electronic player’s card system for stronger prevention of gambling addiction
- - Customize electronic player/s card system for each type of gambling businesses to strengthen its effect of preventing addiction
- · Using the analysis of the cumulative data from the electronic player’s card users for prevention of gambling addiction
- Promoting the usage of electronic player’s card
- - Improve infrastructure and promotions to help expand the usage of electronic player’s card
- · Conduct campaigns and promotional events for wider use of electronic player’s card and diversify the shops that accept points from the cards to mitigate side effects from incentives
Improvement to the actual effect of the yearly sales ceiling
- The lack of reinforcements and sanctions which could stop the continued breaching of the yearly sales ceiling weakens the effectiveness of this system
- · For five years from 2013 to 2017, the casinos excluding the foreigner-only venues exceeded the yearly sales ceiling by KRW 553.4 billion in total
- - The introduction of legal sanctions toward the breach of yearly sales ceiling, such as fines, which requires amendment to the National Gambling Control Commission Act, and the reduction of the previous year’s exceeded sales when setting the yearly sales ceiling, which requires amendment of the Enforcement Decree to the National Gambling Control Commission Act
Limitation of the number of gambling venues
- While the National Master Plan seeks to maintain the standard policy of refraining from the building additional Off-Track Betting (OTB) parlors and the total number of businesses to remain at the approved number in 2013*, the limitation on the total number of businesses are to be added or subtracted flexibly in accordance with the changes such as the growth of the gambling industry, with the approval of the committee
- · 26 racing tracks and 73 OTBs
1-3. Enhancement of evaluation and management of impact evaluation and management
- Modify indicators to enhance the applicability of the evaluation system
- Devise evaluation indicators that reflect upon the progress of improvement
- Minimize and respond proactively to the adverse effects of the gambling industry through evaluation of those impacts
Modify evaluation indicators for the development of the gambling industry in a responsible manner
- Improve indicators to enhance the applicability of the evaluation of responsible gambling
- - Review the existing scoring rubric for efficacy of evaluation, divide the grading system into detailed categories (S⁺–D⁰), and thereby boost the motivation for industry owners and actual effect of enforcement
- Modify evaluating indicators that reflect upon the improvements for responsible gambling
- - Analyze the positive effects of the evaluation since its launch in 2011 and adjust the scoring system to reflect the changes in the industry
Regularize impact evaluation and preliminary discussions
- Minimize the side-effects on the surrounding community of OTB parlors by establishing standards for opening or relocating such venues and providing impact evaluation prior to the operation
- - Regularize the preliminary analysis, prediction and evaluation on the local impact on opening gambling venue such as the influence on the residents, the education of the students and the environment.
- Obligate preliminary discussion with the NGCC prior to opening, relocating or expanding more than 30 percent of the facilities of any OTB parlors
- - The results of the preliminary impact evaluation are to serve as the evidences for discussion and agreement between the NGCC and the related government agencies and taking measures to minimize side-effects to the local area.
1-4. Establishment of a responsible business environment
- Minimize the adverse effects of betting sites and providing continuous supervision over inter-track wagering
- Strengthen supervision for lottery venues and casinos
Minimize the side-effects of OTB parlors by transforming the venue into cultural complexes that provide other forms of entertainment
- Monitor follow-up measures to advisories to transform OTB parlors into cultural complexes and supervise the implementation of such measures
- - [Preventing overindulgence] Expand facilities designed to help prevent overindulgence in gambling activities and open more counseling centers
- - [Cultural and regional contribution] Place betting facilities at less visible sites and encourage the gambling operators to contribute to the community
- Guide the OTB parlors placed near the protection zone such as school to reduce its size or to relocate to the peripheral areas
- · As 60 to 80 percent of the ticket sales are made at OTB parlors, operators continue to resist the guidance to relocate
- - These guidance are particularly directed to the nine OTB parlors located near the protection zone
Continuous supervision over inter-track wagering
- The goal of holding the rate of inter-track wagering to 60 percent of the total betting of the race is to be adjusted based on the changes in the number of tracks and the revenues made from the races.
- - Encourage operators to reduce the number of betting parlors voluntarily by providing incentives based on the result of their evaluation
Strengthen supervision for lottery venues, sports betting, and foreigner-only casinos
- Implement regular and special inspections on compliance to purchase limits and other regulations
- Strengthen identification and screening procedures in foreigner-only casinos
- - Strengthen nationality screening procedure and the management of the customer data