Policy & System
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CAP System

The CAP system aims to minimize the social side effects and lead the sound enhancement of the gambling industry. Under this system, for a certain period the maximum number of business premises is controlled and the rate of sales increase of in the gambling industry is kept at an appropriate level. Therefore, the system is expected to function as a means of preventing excessive expansion of the industry for a certain period of time. The portion of total turnover of the gambling industry to GDP has been decreasing (0.64% in 2008 → 0.62% in 2011). The portion at or near 0.58% will be aimed until 2018.

Concept of the CAP
Category Meaning
Total Amount The whole quantity or weight
CAP The upper limit or maximum limit (of price, wage, and others determined based on legislation or agreement)
Legal Definition Number of premises, amount of sales, and others of collective gambling businesses or within a particular gambling company
Integrated Definition The concept of the upper limit or maximum limit (CAP) for the gambling industry
Procedure to set up the Sales CAP

The core subject in setting up the CAP of gambling industry is to investigate the optimum level regarding the gambling industry and establish the upper or maximum limit. The CAP of the gambling industry is set up by following the procedure shown below. According to the 1st National Master Plan for Responsible Gambling in 2008, the CAP regarding the proportion of GGY to GDP of the gambling industry was set up at the level of 0.58% by 2013. The 2nd National Master Plan for Responsible Gambling on February 2014 initially set it at 0.58% but in the following month it dropped to 0.54% due to the amendment of the System of National Account.

사행산업 총량 설정 절차 구분과 의미 정의
Procedure Details
The preliminary set-up of the CAP Total GGY of the whole gambling industry is set according to the target proportion compared to GDP expected in the National Master Plan for Responsible Gambling
The CAP of each business is set up according to the proportion of GGY to the total gambling industry in the previous year.
The preliminary modification of the CAP Based on the prevalence rate of problem gambling as 30%, the excess or deficiency rate of each business will be converted into permilles (1/1000), which will be added or deducted.
The secondary modification of the CAP The level of each business will be determined by results from the soundness evaluation of the gambling industry, which will be applied to the CAP via addition or deduction.
The third modification of the CAP A business that exceeds its CAP in the previous year will reduce its CAP by 100% of the excess portion.