South Korea arrests 9 people over illegal gambling software network serving 153 sites

Police in South Gyeongsang Province said they arrested 9 people tied to an illegal gambling software operation that serviced 153 websites. For high-risk operators and PSPs, the useful part is not the headline number but the mechanism: live streams from overseas online casinos were being pushed into domestic sites, while distributors handled the virtual currency layer and took a fee on the spread.

1. According to police, the group included seven employees of a software development firm and two representatives of a distribution company. All 9 were charged with organizing illegal gambling. Three were taken into custody, while 6 were sent to prosecutors without detention.
2. Prosecutors say the developers built a system that relayed live video streams from overseas online casinos to local websites, then developed and maintained 153 illegal gambling sites from June 2023 to April 2026. They were paid about 2.18 billion won ($1.6 million) for that work.
3. The distributors handled site allocation and virtual gaming money between the developer and operators of individual platforms. In practice, they bought virtual currency in bulk and resold it, keeping an 8–10% commission. From May 2024 to December 2025, about 270 billion won ($195 million) passed through that channel.
4. The case was opened after a tip-off about one of the distribution team leaders in December last year. Police then followed the supply chain and money flows through July. A court approved the preliminary seizure of about 1 billion won in criminal proceeds from the distributor.
5. Access to 22 active sites has been blocked through the Korea Communications Standards Commission, and two accomplices who fled abroad have been placed on an international wanted list. Police said the special operation against groups supplying and distributing illegal gambling sites will continue until 31 October.