South Korea Offers Whistleblowers $145K Reward for Illegal Sportsbook Tipoffs

The operator of South Korea’s official sports pool promotion, Sports Toto, will offer whistleblowers up to 200 million KRW ($145,000) for tipoffs about illegal sportsbook operators.

The South Korean media outlet The Fact reported that the operator will also pay informers who provide information about match fixing.

The funding will come from Korea Sports Leisure, the trustee of Sports Toto. The operator has set up a hotline and dedicated tip-off portal at the Illegal Sports Toto Reporting Center.

The center will pay citizens cash for information about illegal sports gambling sites, their operators, and their users.

Sportsbook Whistleblowers in Line for Cash Windfall

Per the terms of the National Sports Promotion Act, both operating and using illegal sports gambling platforms are criminal offenses.

Violators can be punished with jail terms of up to seven years. They can also be fined up to 70 million won ($50,437).

Sports Toto has recently intensified its efforts to crack down on illegal sports gambling sites. But despite its initiatives, many illegal sites continue to operate with impunity in South Korea.

Sporting corruption allegations persist in the wake of the 2011 K-League (professional soccer) match-fixing scandal.

Experts think that organized crime networks continue to push players to take part in match-fixing schemes and operate illegal casino platforms.

The center explained that whistleblowers who provide information on match-fixing in sports will be rewarded with handouts of up to 50 million won ($36,035).

Citizens who submit reports about firms or freelancers who produce advertising or promotional materials for illegal sports gambling sites will also receive up to 15 million won ($10,812).

Individuals who come forward with information about sports betting brokerage services will be eligible to receive similar rewards.

Crack Down to Continue on Illegal Gambling, Says Toto Operator

Tipoff rewards are subject to review from the internet watchdog, the Korea Communications Commission, the center explained.

A Korea Sports Leisure spokesperson said: “The amount of damage caused by illegal sports gambling sites is increasing every year. The center operates a reward system to encourage voluntary participation from citizens. Korea Sports Leisure will also do its best to reduce the damage that illegal sports gambling causes.”

Sports Toto allows citizens to place small-scale bets on domestic pro volleyball, baseball, basketball, and soccer (football) results. The operator runs two brands: Sports Toto and Proto.

Rather than betting on individual matches, Sports Toto and Proto tickets invite players to predict the scores or first scorers in multiple matches, with betting funds pooled together. The pool then pays out to players with the highest number of correct result predictions.

In recent months, pro e-sports league operators have petitioned lawmakers to let Sports Toto open similar books for competitive video gaming fixtures.

Earlier in July, the South Korean Financial Supervisory Service accused six unnamed payment gateway providers of allowing illegal casino operators to use their services.

The regulator stated that the PG firms “provided electronic accounts to criminal organizations that orchestrate illegal gambling, drug distribution, and voice phishing networks.”