South Korea Considers Legalising Esports Betting Through Sports Toto By 2028

South Korea is considering introducing legal esports betting through Sports Toto by 2028 as part of a wider overhaul of the country's state-authorised sports betting system.

The proposal forms part of the government's Sports 2030 Policy Vision, presented by the Ministry of Culture, Sports and Tourism on 4 September. The strategy includes plans to modernise Sports Toto, expand its digital capabilities and improve its competitiveness against illegal gambling operators.

Esports has been identified as a potential addition alongside table tennis, handball and billiards, although its inclusion remains subject to approval by a selection committee. No final decision has been made on whether esports competitions will become eligible for betting.

Illegal Betting Market Reaches KRW21.7 Trillion

The proposed reforms come amid concerns over the scale of illegal sports betting in South Korea. According to figures from the Ministry of Culture, Sports and Tourism, the illegal market reached an estimated KRW21.7 trillion ($15 billion) in 2025, almost four times the size of the country's legal sports betting sector.

Established in 2001 ahead of the 2002 FIFA World Cup, Sports Toto operates as South Korea's only authorised sports betting system and generates revenue for the National Sports Promotion Fund.

However, the government believes the system requires significant modernisation to compete with unauthorised alternatives and retain betting activity within the regulated market.

Vice Minister of Culture, Sports and Tourism Kim Dae-hyun recently acknowledged that Sports Toto had operated for an extended period without major structural reform, despite its importance as a source of funding for domestic sport.

The government's proposals are intended to improve the accessibility and competitiveness of the legal betting offering while addressing the financial impact of gambling activity taking place outside the authorised system.

Mobile Betting And In-Play Wagering Planned

A central element of the reform programme is the introduction of an official Sports Toto mobile application in 2027. The system currently relies on PC-based online betting, with digital sales accounting for approximately 20.1% of its total.

By comparison, mobile betting accounts for 44.2% of sales across South Korea's cycling and boat racing markets, highlighting the difference in digital accessibility between the country's authorised gambling products.

The government is also considering extending Sports Toto's operating hours beyond the current 8am to 11pm window. Changes could be introduced in 2027 to accommodate European football fixtures played overnight in South Korea, potentially benefiting international esports competitions held in other time zones.

Further reforms include plans to introduce real-time betting during sporting events in 2028 and increase the proportion of stakes returned to winning customers.

Sports Toto's current payout rate is approximately 64%, compared with an estimated 90% offered by illegal operators. Other authorised gambling products in South Korea also offer higher returns, including cycling and boat racing at 72%, horse racing at 73% and casinos at 75%.

The government hopes that improving the legal product's competitiveness will encourage customers to move away from unauthorised betting platforms.

Esports Industry Renews Push For Betting Inclusion

The potential introduction of esports betting follows several years of lobbying by the Korea e-Sports Association (KeSPA) and other industry stakeholders.

Discussions involving KeSPA, the League of Legends Champions Korea (LCK) and the Korea Sports Promotion Foundation began in 2023, with an initial proposal to introduce League of Legends betting in 2024. However, the government rejected that proposal in April 2024.

KeSPA resumed its efforts in May 2025 and published a 150-page report in December outlining proposals to improve the financial sustainability of South Korean esports.

The recommendations included introducing esports into Sports Toto, establishing a dedicated integrity organisation known as K-ESIC and creating a levy of between 1% and 2% on betting revenue to support game publishers.

KeSPA has argued that additional funding mechanisms are necessary to reduce the esports industry's dependence on publishers and address financial pressures affecting professional teams.

According to figures cited by the association, the LCK's ten franchised teams accumulated combined losses exceeding KRW100 billion between 2021 and 2023. T1 alone recorded an operating loss of KRW12 billion in 2023 despite generating KRW32.8 billion in revenue, although its financial position has reportedly improved since then.

Final Decision Expected By 2028

The inclusion of esports in Sports Toto remains a proposal rather than an approved regulatory change. According to reporting by SPOTV, any decision will depend on the criteria established by the relevant selection committee ahead of the planned 2028 expansion.

If approved, esports would become part of South Korea's authorised sports betting framework, potentially creating an additional funding source for the domestic competitive gaming industry.

The proposal also reflects the government's wider effort to redirect betting activity from illegal operators towards Sports Toto through expanded product availability, improved digital access and changes to its existing betting restrictions.