According to the legal definition, the gaming industry uses a man’s speculative drive to seek profits or produce relevant products and services. That is, it is defined as an industry that makes its customers get either benefits or damages to loss from luck.
According to subsection (1) in the Article 2 in the National Gambling Control Commission Act, the gambling industry includes casinos, horse-racing, bicycle-racing, motorboat-racing, lottery, Sports Toto, and bullfight. (Article 2 in the 『National Gambling Control Commission Act』)
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Speculative action
A ‘speculative action’ means an act that benefits or damages on one’s property according to results from coincidental methods by collecting wealth or profits of property from the majority (Article 2, Section 1 in the 『Special Law on Regulation and Penalty of Speculative Actions])
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Speculation
‘Speculation’ is defined as ‘characteristics to desire luck by chance’. Therefore, it can be prescribed by including: ‘the main purpose to obtain giveaways or dividends without the elements of a game,’ ‘an increase in speculation due to excessive betting or dividends,’ and a direct transaction of bilateral gain and loss based on networks between users.’
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Speculative game product
A ‘speculative game product’ is defined either as ‘a game product with betting or dividends, which benefits or damages on one’s property according to its result’ or as ‘a game product determined by coincidental methods, which benefits or damages on one’s property according to its result.’ (Article 1, Section 1 in the 『Game Industry Promotion Act; Article 1, Section 2 of the enforcement ordinance under the Act)
Based on the individual act
| Name | Legal definition |
|---|---|
| Casino | A business type which either benefits or damages one’s property according to results of coincidences with dice, poker, slot machines, and others in a special premise (Article 3 in the 『Tourism Promotion Act』) |
| Horse-racing | Actions to sell horse-racing tickets for races in which jockeys ride horses and prize money is paid to winners (Article 2 in the 『Korea Racing Authority Act』) |
| Bicycle-racing | Actions to sell bicycle-racing tickets and pay prize money to winners (Article 2 in the 『Bicycle and Motorboat Racing Act』) |
| Motorboat-racing | Actions to sell motorboat-racing tickets and pay prize money to winners (Article 2 in the 『Bicycle and Motorboat Racing Act』) |
| Lottery | Tickets issued in order to pay prize money, which is collected from the majority, to winners determined by lot (Article 2 in the『Lottery Tickets and Lottery Fund Act』) |
| Sports Toto | Tickets to pay prize money to winners who are right about game results, which contain the way to participate in the game, the maximum amount of money winnable, and other details from the Presidential decree (Article 2 in the 『National Sports Promotion Act』) |
| Bullfight | A trial of strength between fighting bulls in the Bullfight Stadium (Article 2 in the『Traditional Bullfight Match Act』) |
According to Article 2 of the 『Special Law on Regulation and Penalty of Speculative Actions』, a speculative action is defined as “an act that benefits or damages on one’s property according to results from coincidental methods by collecting wealth or profits of property from the majority.” In addition, definitions by business type are as follows:
| Business types | Definition |
|---|---|
| Issuing business of lottery tickets | A business that benefits winners by adding to their property or damages others by lot by collecting wealth from the majority with a certain admission (including an electronic type created by data processing devices such as computer programs) |
| Prize business | A business that benefits some or all winners' share of property or damages others through wealth collection from entries in terms of presentation of solutions or correct entries in a certain survey or prediction |
| Other types | A business operated by devices or methods able to arouse speculation with a purpose of profits such as a wheel of fortune, draw, and sweepstakes, which is determined by Presidential decree |