South Korea Dismantles Record Illegal Gambling Network Processing KRW23 Trillion Across Multiple Countries

South Korean police have dismantled the country’s largest identified illegal gambling network, apprehending 77 suspects connected to an operation that handled KRW23 trillion ($17.3 billion) in wagers through 188 websites.

As reported by World Casino News, the Chungnam Provincial Police Agency announced the arrests on October 19. 21 individuals were detained and 56 referred to prosecutors without detention. The network operated between March 2023 and July 2026 with facilities in South Korea, Vietnam and Cambodia, generating approximately KRW150 billion ($113 million) in criminal proceeds.

Automated Supply Chain Enabled Rapid Site Creation

The organization obtained casino video streams and virtual gaming credits from legal overseas gaming companies. A specialised supply business distributed these to software developers, who built platforms using programmers recruited from major South Korean conglomerates. The system could produce a functioning gambling website in approximately 10 minutes.

Development companies charged monthly maintenance fees ranging from KRW1.5 million to KRW3 million per website. The casino content supply side accumulated KRW120 billion in proceeds while the website development business earned KRW30 billion. Among those arrested were 25 suspected supply network members, 33 website operators and 19 gamblers. Additional charges for forming a criminal organisation were applied against 24 suspects associated with the development business, according to SBS News.

Enforcement Pivot Targets Upstream Infrastructure

The investigation expanded in November 2025 after tracing connections through 795 financial accounts and overseas messaging applications. Suspects relocated offices every one or two months between South Korea and Southeast Asia, using overseas servers, proxy bank accounts and cryptocurrency. Police blocked 408 related internet addresses and secured court orders freezing KRW9.6 billion ($7.2 million).

Authorities are pursuing 12 additional suspects who fled overseas, including two alleged leaders of the supply organisation, and plan to seek Interpol Red Notices. Kim Tae-woo, head of the Cyber Investigation Unit at the Chungnam Provincial Police Agency, said: “This investigation has dismantled the topmost supply chain, effectively withering large-scale gambling sites. We will continue to carry out persistent crackdown operations focusing on the topmost supply chain moving forward.”

The operation reflects a deliberate focus on suppliers and developers after prior efforts showed that closing end-user sites failed to prevent new platforms from emerging. This approach disrupts the infrastructure that allows such networks to scale quickly.

Reporting: World Casino News

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