Second-Year Online Horse Betting... Confirming the Potential for Healthy 'Small-Amount Horse Racing'

Online Horse Racing Betting 'DerbyOn'
Cumulative Registrations Surpass 90,000... Up 50% From Last Year
88% of Users Purchase for Less Than 10,000 KRW
Concerns Over Gambling Tendencies Dispelled... Promoting a Healthy Horse Racing Culture

Amid expectations for the "revitalization of the horse racing industry" and concerns about "promoting gambling tendencies," the official launch of online betting tickets in June last year has established itself as a way to enjoy horse racing responsibly with small amounts. The number of members registered for the online betting service has exceeded 90,000, receiving positive responses from users, with nearly 90% of users enjoying horse racing with bets under 10,000 KRW.

According to the Korea Racing Authority (KRA) on the 19th, the cumulative number of registered users for "DerbyOn," where online betting tickets can be purchased, reached 91,943 as of the end of February, an increase of 30,546 (49.8%) compared to 61,397 in June last year when operations began.

The Korea Cup is being held at Gwacheon Racecourse.

A KRA official explained, "The KRA operates the online betting ticket sales business focusing on enjoying horse racing through 'healthy purchases' rather than immediate quantitative growth. Initially, there were concerns that users would lose self-control and place large bets as they could conveniently purchase tickets anywhere, but through purchase amount and age restrictions, we confirmed the possibility that online sales can foster a healthy horse racing culture."

This is not the first time online betting tickets have been issued. Online betting tickets, allowing bets outside racecourses, were first introduced in 1996, but were abolished in July 2009 after the Ministry of Government Legislation issued an authoritative interpretation stating that "there is no legal basis for issuing betting tickets outside racecourses." Subsequently, due to the COVID-19 pandemic in 2019 which caused horse racing suspensions, sales dropped to 1.088 trillion KRW in 2020 and 1.0461 trillion KRW in 2021, about one-fifth of previous levels. The government, which had maintained a cautious stance due to concerns about promoting gambling tendencies and other side effects, shifted its position to allow online horse racing under the condition of establishing safeguards after the inauguration of the Yoon Suk-yeol administration, accelerating discussions to permit online betting again. Meanwhile, countries such as the United States (since 2000, varying by state), Japan (2002), Hong Kong (2002), Italy (2007), France (2010), and Singapore (2016) have successively started online betting ticket sales.

Ultimately, the "Korea Racing Authority Act Amendment Bill," which allows online horse racing, was passed by the National Assembly plenary session in May 2023, establishing a legal basis, and official online betting ticket sales began on June 21 last year. This enabled betting ticket purchases, which were previously only possible at three racecourses nationwide?Gwacheon, Jeju, and Busan?and 26 off-track betting locations, to be enjoyed freely without location restrictions.

Korea Racing Authority's online horse racing betting app 'DerbyOn'

To dispel concerns about promoting gambling tendencies, the KRA set the purchase limit per race at 50,000 KRW, half of the 100,000 KRW limit at physical venues. The minimum purchase age was also raised to 21 years, a measure to prevent increased gambling tendencies among younger generations due to expanded accessibility. Singapore and some U.S. states issuing online betting tickets also restrict participation to those aged 21 and over. The registration process is strict: users can only use the service through a mobile device registered under their own name, and to purchase tickets online, they must visit a business location for face-to-face verification. The focus is more on reducing gambling tendencies and alleviating concerns than on expanding the online betting ticket market.

Due to various measures to promote the soundness of the horse racing industry, the average purchase amount per transaction for online betting ticket users in 2024 remained about 5,000 KRW, approximately 47% of the amount at physical venues. A KRA official emphasized, "Users purchased 88% of betting tickets for 10,000 KRW or less, showing that they enjoy horse racing with small amounts," adding, "This is a result contrary to the initial concerns that online betting tickets might promote gambling tendencies."

The KRA plans to strengthen competitiveness so that online betting tickets can absorb the illegal gambling market. A KRA official expressed concern, saying, "Horse racing limits the scale of online sales to 10% of total horse racing sales to prevent rapid expansion of gambling tendencies. If the legal gambling industry does not grow properly, it could only fatten its competitor, the illegal industry." According to the Integrated Gambling Supervision Commission, the scale of illegal horse racing was about 8.45 trillion KRW in 2022, 30% larger than the legal horse racing sales in 2024.

This year, the KRA intends to expand the base of online betting ticket sales. They plan to offer various benefits to new subscribers aligned with seasonal festivals and provide horse riding experiences to new customers visiting the horse racing park. Additionally, a dedicated department will be established to upgrade the DerbyOn application to build a stable mobile app service comparable to securities firms. Kim Jong-chul, head of the KRA Customer Service Division, said, "Through pilot and official operations over the past year, the KRA has gained confidence that online sales can foster a healthy horse racing culture," adding, "We will change perceptions of horse racing through the online betting ticket sales service."

This content was produced with the assistance of AI translation services.