A Korean cybergambling ring was just shut down. They allegedly received 77.6 billion won ($81.9 million) in cash from online game players between November 2003 and July 2006. They are also accused of embezzling 7.6 billion won (around $8 million) of the illegal earnings. I'm not sure if this is what the Korean government defined as their winnings or if they were cheating at operating the game over and above running the illegal gamblign operation.
As I understand it, the cybergambling ring earnd $8 millioin in its 2.5 years of operation.
It looks like the cybergambling ring worked with cybermoney dealers (virtual currencies?) to carry out this business.
??? Does anyone have information on Korean "cybermoney dealers"?
The article closed with the statement from Korean prosecutors:
It also said it would expand its investigation into any illegal deals that may occur in the online gaming industry.
What this means for the Korean online gaming industry is to be seen.
The game industry really needs to take the lead to define legitimate online activities with government. Otherwise zealous prosecutors and politicians could turn "grey" areas into illegal activities.
Illegal cyber-gambling ring busted
Prosecutors yesterday charged 39 people with operating fraudulent online game software that allows players to receive lump sums of cyber money.
A 39-year-old accused, identified only by the surname Moon, and others allegedly received 77.6 billion won ($81.9 million) in cash from online game players between November 2003 and July of this year. They are also accused of embezzling 7.6 billion won of the illegal earnings.
Moon and another accused, identified by the surname Chung, sold the computer program to 139 cyber money dealers between April last year and July 2006, earning over 200 million won.
Prosecutors said the dealers required game players to deposit money into their bank accounts and to log onto their online gaming room. The dealers would then operate the illegal program to provide cyber money in lump sum to players.
"The accused would contact the players first through instant messaging and entice them to buy cyber money from the dealers," a prosecutor source said. He added that the dealers continued to run advertisements for their websites until being charged yesterday.
"The internet game is not just a simple game any more, but gambling. And the younger generation has been tempted to purchase cyber money, which is cashable."
The Seoul Central Prosecutors' Office handed in the dealers' income tax documents to the National Tax Service and closed down the internet severs that were distributing the illegal program.
It also said it would expand its investigation into any illegal deals that may occur in the online gaming industry.
(aibang@heraldm.com)
By Annie I. Bang
2006.10.03