South Korea Casino Reforms Face Delay Amid Industry Opposition

South Korea's planned overhaul of casino regulations could be delayed until later in 2026 as the government continues discussions with operators over proposals to increase industry contributions and introduce a new licensing system.

The Ministry of Culture, Sports and Tourism is preparing amendments to the Tourism Promotion Act that would increase the maximum contribution to the Tourism Promotion and Development Fund from 10% to 15% of annual gross gaming revenue (GGR). The reforms would also introduce a five-year casino licensing system with periodic reviews.

The ministry had initially targeted September for introducing the amendments, but the timetable is now expected to slip as officials continue assessing the potential impact on the casino and tourism industries.

Government Continues Casino Industry Consultations

South Korea's Chuseok holiday, which runs from 24 to 27 September, and the National Assembly's annual government audit between 6 and 27 October could contribute to the delay.

A Ministry of Culture, Sports and Tourism official told local media that discussions are continuing with individual casino operators and that additional time is required for industry consultation and an internal review. However, the ministry still intends to submit the proposed amendment during 2026.

Officials are also considering transitional arrangements for casinos that have recently received licences, potentially reducing the immediate impact of moving to the proposed five-year licensing framework.

The office of Representative Cho Gye-won, who has been involved in efforts to advance the reforms, said it had not yet received a draft amendment from the ministry. This means the formal legislative process is yet to begin while the proposals remain under government review.

Higher Contribution Rate Raises Investment Concerns

The proposed increase in contributions to the Tourism Promotion and Development Fund has attracted opposition from casino industry representatives, who have warned that additional costs could discourage investment.

However, the proposed 15% maximum would not apply across all casino revenue. The ministry intends to introduce a new higher revenue band, with only GGR exceeding a threshold that has yet to be determined becoming subject to the increased rate.

Shin Jong-ho, Secretary General of the Korea Casino Association, warned that increasing the contribution could negatively affect investment in casino facilities and future development.

Industry representatives have also raised concerns over the proposed five-year licensing model, arguing that more frequent renewal requirements could create uncertainty for businesses making significant long-term investments.

Ministry Says Regulation Requires Modernisation

The Ministry of Culture, Sports and Tourism has defended the reforms as necessary to modernise a casino regulatory framework that has remained largely unchanged for almost three decades.

Under the proposed licensing system, periodic reviews would consider factors including regulatory compliance, financial viability and management capability. The government believes this would strengthen oversight while assessing whether operators remain suitable to hold casino licences.

Casino and tourism industry representatives have called for the proposals to be withdrawn, warning that the combination of higher contributions and five-year licence renewals could affect investment, employment and South Korea's competitiveness against other Asian casino destinations.

With consultations continuing and a draft yet to reach lawmakers, the reforms now appear unlikely to progress according to the government's original September timetable, although the ministry continues to target submission before the end of 2026.