ICE365_ESPORTSREPORT_JULY2021 | Page 11

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SOUTH KOREA

Shanghai International New Cultural and Creative E-sports Center , which is expected to open in 2024 .
STATE OF ESPORTS BETTING IN CHINA
Gambling , which is strictly prohibited under Chinese law , has been officially outlawed since the Communist Party came to power in 1949 .
Other than the state-run China Welfare Lottery and China Sports Lottery , all forms of the pastime , including esports betting , are illegal . Given the country ’ s tough stance on all forms of gambling , there is little chance of esports betting being approved in the foreseeable future .
Ian Smith , the integrity commissioner of the Esports Integrity Commission ( ESIC ) has said that the biggest problem for esports integrity is found in Dota 2 .
“ It is completely out of control . The fixing is rife ,” Smith was quoted as saying in a blog piece by World Lotteries Association ( WLA ) earlier this year .
“ If you get a raft of fixing in any game you can guarantee it comes from China ,” he said . It ’ s because of the sheer volume of liquidity in the Chinese market and their experience in match-fixing . Games that are popular in China will always , always , always have issues with fixing .”
Smith estimates that Chinese betting drives at least 50 % of all match-fixing in any sport , but the figure could actually be closer to 80 %.
SOUTH KOREA is widely regarded as the birthplace of modern esports . Its origins can be traced back 20 years through a combination of the PC bang / internet cafe culture , cable TV and in-person competitions . OnGameNet , the first dedicated esports cable TV channel , began life in the country in the early 2000s , broadcasting StarCraft tournaments .
Esports ’ popularity was so strong in those early years that the government created the Korea Esports Association ( KeSPA ) to manage esports in the country . The association later played a major part in building the world ’ s first esports stadium in 2005 in Yongsan .
While the country is no longer the biggest esports market in the world , it remains an important cornerstone of the global esports landscape , providing some of the
most talented players and teams in the world . The country also created Game Coach Academy , the world ’ s first government accredited esports academy , which is aimed at training future professional gamers .
Though it trails Philippines and Vietnam , South Korea is also home to one of the highest number of gamers per capita . Around 70.5 % of South Koreans were reported to play games in 2020 . 3
STATE OF ESPORTS BETTING IN SOUTH KOREA
The country has a complex relationship with gambling . As a rule of thumb , with the exception of lotteries , horse racing , boat racing and cycling ( which are offered through a governmentregulated Sports Toto ), all forms of online gambling and betting are considered illegal for South Korean locals .
Under South Korean law , not only are foreign betting operators targeting South Koreans committing a criminal offence , so are its citizens if they are discovered betting on an illegal online gambling or betting site . That being said , the laws don ’ t apply to foreigners , expats and tourists , as well as , technically , Koreans holding a foreign passport .
SOUTH KOREA ESPORTS BETTING PROJECTION *

4.5m

2020

4.9m

2021
* Number of people ( in millions ) betting on esports . Data projected by selecting those in Newzoo ’ s esports audience aged 20 +
3
Game user market report by KOCCA
July 2021