South Korean police have arrested 58 people accused of operating illegal gambling websites that falsely presented themselves as online services affiliated with Kangwon Land, the country’s only casino where South Korean citizens can legally gamble. Five of the suspects were taken into custody.
The Gyeongbuk Provincial Police Agency’s cyber investigation unit said the group included a Russian national alleged to have led its operations in South Korea. Other suspects were Russian-origin foreigners living in the country, including individuals from Kazakhstan.
Investigators said the operators used social media to attract approximately 40,000 Korean users. They allegedly copied Kangwon Land’s logo and presented their websites as an official online gambling platform, despite the casino operator having no such service.
The group also allegedly produced deepfake promotional videos using the faces and voices of well-known athletes. Police said the material helped the operators promote the websites and make the unauthorized platforms appear credible.
Investigation Tracks KRW78 Billion Through Mule Accounts
Police estimate that approximately KRW78 billion in gambling funds passed through the websites between October 2022 and August 2025. The amount was reported at roughly US$55.1 million in one account and about US$56 million in another.
Investigators said the group used more than 70 bank accounts registered under other people’s names to process deposits and withdrawals. The accounts were changed each month to make it harder for authorities to trace the money.
The suspects allegedly worked in separate roles. Some handled deposits and withdrawals for Korean bettors, while others recruited so-called mule accounts that could be used to move gambling funds.
Police have sought preindictment asset preservation covering approximately KRW1.5 billion in suspected criminal proceeds linked to the alleged ringleader and other members of the group.
The websites themselves reportedly held licenses in jurisdictions where online gambling is legal. They offered gambling services in 35 languages, including Korean, allowing the operators to market the platforms to users beyond their apparent Korean target audience.
Authorities are continuing their investigation, with particular attention being given to frequent and high-stakes gamblers among the site’s users.
Kangwon Land Says It Has No Online Gambling Site
Kangwon Land operates in Jeongseon County, Gangwon Province. South Korea generally prohibits its citizens from gambling under the country’s Criminal Act, while Kangwon Land operates under a specific legal exception.
The casino’s domestic gambling authorization dates to a special law introduced in 2000 to support the local economy after nearby coal mines closed. Other casinos in South Korea are restricted to foreign passport holders.
That distinction made the alleged impersonation of Kangwon Land central to the police investigation. The operators allegedly used the company’s identity to persuade customers that they were accessing a legitimate online extension of the state-run casino.
Police stressed that Kangwon Land does not operate an online gambling platform.
“Kangwon Land, the only casino legally operating in Korea, does not run any online gambling site,” police stated, according to Korea JoongAng Daily. “We will track down and strictly punish gambling rings that deceive the public by exploiting the name of a state-run company.”
A separate police statement emphasized the authorities’ intention to pursue organizations that use public-enterprise identities to mislead customers.
A source from the police said, “We will relentlessly pursue and severely punish gambling crime organizations that deceive citizens by forging the names of public enterprises.”
The investigation indicates that the alleged operation combined unauthorized branding with social media promotion and deepfake material to attract customers. Its financial network relied on accounts belonging to other people, while investigators said the operators repeatedly replaced those accounts to reduce the risk of detection.
The arrests follow the police identification of the alleged Korean operating network and the application for preservation of suspected criminal proceeds. Authorities have also said they are examining the activities of users who placed frequent or high-value bets through the illegal platforms.