Gambling News by Gambling Headquarters

Minister of Culture and Tourism Kim Myung-gon Friday said that the government will ban video game arcades from using gift certificates for payouts in April next year as part of the efforts to eradicate illegal gambling. Kim also apologized to the public in a press briefing, accepting criticism after the Board of Audit and Inspection of Korea on Thursday held the government accountable for the recent video gambling game scandal over ``Pada Iyagi'' or Sea Story. ``As the main government body responsible for the gaming industry, I apologize to the public for causing such a big controversy with addictive games,'' Kim said. ``I feel totally responsible for the audit result and as head of the ministry, I will try to improve the gaming licensing system,'' he said. The nation's video arcades and slot machine parlors have been unlawfully allowing their customers to cash their vouchers, which is considered the main culprit behind the quick spread of illegal gambling. Kim said that the government is also planning to come up with stricter licensing regulations for companies. The ministry first allowed game arcades to use gift certificates as payouts in 2002. The vouchers, dubbed ``culture gift certificates,'' were supposed to be used to purchase items such as books, music, and tickets for movies and the theater, but instead were exchanged for cash. The ministry has been hit hard by the gambling scandal, which involves ministry officials who were lobbied by businessmen for licenses to sell the game machines or issue the vouchers. The recent gambling scandal first erupted in August when prosecutors indicted the chief executives of the two companies that manufactured and distributed ``Pada Iyagi,'' video slot machines. The audit board on Thursday sent a list of 36 people, including former high-ranking ministry officials to the prosecutor's office for criminal investigation.

With most gaming rooms unlawfully trading the vouchers for cash to lure more customers, the country's video slot machine business grew beyond recognition with the number of adult-only game arcades outnumbering 24-hour convenience stores by 20,000 to 9,500.

Most of the gaming machines were illegally reprogrammed to allow higher payouts than the legal limit of 20,000 won. Pada Iyagi was the country's most popular slot machine game by far with more than 45,000 units sold.