Jeju’s decision to step away from proxy betting

Jeju Island has become a haven for gamblers in South Korea with its foreign-only casinos. It is a popular tourist destination but it gets better with more casinos there. At the same time, they wanted a boost in profits with their decision to dabble in the idea of proxy betting.

In 2022, South Korea explored proxy betting or live casino games where remote players can contact the casino. The gamblers can play their favourite games from the comfort of their homes. However, Jeju Island has dropped the idea of proxy betting, find out about their rationale here.

The licensing conundrum 

After the appointment of Jeju governor Oh Young-hun on July 1, 2022, there were rumblings of him being open to new casino licences. Unlike his predecessor Won Hee-ryong who was reluctant to grant new licences,  Oh’s position is unclear, which led to some struggles in creating new casinos in the Jeju region. 

That led to some unrest within the community which soured some people on proxy betting. These concerns prompted some to explore alternatives like [Stake Casino Korea] any many other online casinos where the gambling experience was being offered without many restrictions like brick-and-mortar establishments.

Diplomatic troubles play a factor

The prospect of foreign-only casinos was still huge, considering it was popular before the pandemic shut the industry down for a long while. The idea of proxy betting was suggested by Lee Sang-heon, a member of the National Assembly’s Culture, Sports, and Tourism Committee. 

Jeju Tourism Industry Division assistant director Son Minho gave updates about what will happen to the casinos in the area. He said, ‘Firstly, the country’s inland casinos are not interested in proxy betting; secondly, it might cause diplomatic and technical troubles if adopted. Lastly, the pandemic is over, so the Jeju casino industry isn’t pursuing it anymore’.

This was a massive bombshell for the casino industry because South Korean gambling is rooted in having foreigners use their facilities. Proxy betting would’ve been a massive cash injection for them as more foreigners would play as they aren’t required to travel. With that decision, the casinos needed to serve the tourists only and nobody else.

In addition to that, the diplomatic concerns were about how other countries might not approve of proxy betting. That meant they would’ve been gambling within their borders and might pose an issue when considering all kinds of restrictions and laws. 

Compensating for the pandemic losses

It was a big deal since South Koreans are not allowed to gamble in the 17 land-based casinos around the country, barring one with Kangwon Land where Koreans can play and gamble. This left some casinos wondering where they could earn their profit since they had some years in the red due to the COVID-19 pandemic.

Remote or proxy betting would’ve been a big deal for casinos because that was another profit source. That was meant to compensate for the loss of having no tourists during 2020’s disastrous pandemic.

However, as Son said, they are not thinking about it anymore because they think the tourist profits will turn out for the better. It’s a positive result for them because they believe in the Jeju casinos’ drawing power, especially since it’s a powerful force in the industry for Japanese players who need to travel to Korea just to gamble. 

No statistics are available yet but the pandemic losses were likely earned back over the past few years. It was a dark time for Jeju casinos but they are recovering it’s unknown if they’re separated from the red zone. 

A focus on the brick-and-mortar aspect

With this pivot away from proxy betting, the focus is on improving the brick-and-mortar casinos. Jeju has always been a popular spot and they are well-reviewed with spots like the Jeju Shinhwa World Resort, the Seven Star Casino, and many more. 

Jeju will likely be supportive of progress with their brick-and-mortar casinos compared to proxy betting because it is a safer option. The diplomatic issues might’ve been too much for them to overcome as it will not only limit their profitability but it would’ve brought unwanted troubles they could not afford.

This might be a shift in focus but the gambling experience is still premium for Jeju. The growth will most likely decide if the decision to pivot was right, especially since the island is still popular among its core audience in a close country like Japan. They will have to compete with online casinos like Stake Casino Korea but Jeju is banking on brick-and-mortar still staying popular.