On November 6, 2025, the Gangwon Provincial Police Agency dismantled South Korea’s largest illegal gambling network — a ₩5.3 trillion ($3.8 billion) operation spanning 266 websites, all masterminded from a prison cell. The case marks Korea’s first successful takedown of a “vendor company” structure, the elusive distribution layer that supplies gambling platforms to lower-level operators.
From Prison Cell to Criminal Empire
The ringleader “Mr. A,” a man in his 40s, was imprisoned in 2020 for running gambling venues. During his sentence, he meticulously planned his next operation — organizational structure, business model, and technical infrastructure included. Korean media compared it to a real-life version of the crime film “The Roundup 4.”
Upon release, Mr. A recruited software developers and established a front company disguised as a “server rental business.” Between November 2021 and March 2025, the syndicate built 266 gambling websites offering live baccarat through pirated overseas casino feeds. Subordinate operators paid ₩3 million (~$2,100) monthly in management fees to use the infrastructure.
The operation’s most significant expansion came in September 2024 with a “vendor company” in the Philippines that directly sourced live casino feeds, gaming currency, and technical infrastructure. This vertical integration eliminated middlemen and sent profits soaring — the network processed ₩5.3 trillion in just seven months, averaging over ₩750 billion ($540 million) monthly.
Sophisticated Evasion Tactics
Police described the vendor company model as unprecedented. The group employed extensive countermeasures: overseas servers in the Philippines, Cambodia, and Vietnam; a strict ban on mobile phones among members; Telegram-based communications; and cryptocurrency transfers for fund movements.
“The group was found to have carefully prepared the crime by using overseas remote servers and banning mobile phones,” stated a Gangwon Provincial Police official.
International Takedown
The investigation began with a tip from a detained gambling suspect. Police traced 205 bank accounts and Telegram conversations to map a compartmentalized organization with leadership, technical, finance, marketing, and operations divisions.
Starting June 2025, Korean police coordinated with the Philippine Bureau of Immigration and Philippine National Police. On September 3, 2025, 49 South Korean suspects were repatriated from Manila — one of the largest single deportations of its kind, with over 100 Korean officers dispatched to receive them.
Arrests and Seized Assets
The November 6 bust resulted in:
| Category | Details |
|---|---|
| Arrested | 14 individuals |
| Detained | 7 (including Mr. A) |
| Fugitives | 2 (Interpol Red Notices issued) |
| Assets frozen | ₩3.35 billion (~$2.4 million) |
| Cash seized | ₩480 million from senior members |
| Hidden cash | ₩278.4 million in unmanned locker (linked to fugitive Mr. B) |
Charges include organizing a criminal group and opening gambling venues, carrying up to 5 years imprisonment plus ₩30 million fines.
Timeline of Events
| Date | Event |
|---|---|
| 2020 | Mr. A imprisoned; begins planning operation from cell |
| Late 2020-2021 | Post-release, recruits developers, establishes front company |
| November 2021 | Begins creating gambling websites (266 total) |
| 2022-2024 | Network expands with ₩3 million/month fees per site |
| September 2024 | Philippines vendor company established |
| Sept 2024 – March 2025 | Peak operation: ₩5.3 trillion in betting volume |
| June 2025 | Korean-Philippine police coordination begins |
| September 3, 2025 | 49 suspects repatriated from Manila |
| November 6, 2025 | Main bust: 14 arrested, first vendor company dismantled |
The Bigger Picture
This case is part of Korea’s intensified crackdown. Between November 2024 and October 2025, authorities made 5,196 arrests across 3,544 cyber-gambling cases, recovering ₩123.5 billion ($83.6 million) and identifying 7,153 underage gamblers. Illegal gambling in South Korea has reached ₩102.7 trillion over five years — a massive underground economy authorities are racing to contain. This mirrors similar enforcement efforts in Indonesia’s gambling crackdown.
NPA Director Park Jae-suk noted “a sharp increase in South Koreans moving overseas to run illegal gambling networks,” primarily to Southeast Asian nations including the Philippines.
Understanding the Risks
While illegal gambling networks promise easy money, the house edge ensures operators always win long-term. Our risk of ruin calculator demonstrates why even seemingly small advantages lead to guaranteed player losses over time.
