[2025 Audit] "Government Neglects Illegal U.S. Lottery Ads Despite Awareness"
"No Crackdown as Online Purchasing Agencies Spread"
There are growing concerns that the government is exacerbating consumer harm by failing to crack down on illegal advertisements for overseas lottery purchase agencies, despite being aware of their illegality.
On October 20, Assemblyman Jung Yeonwook, a member of the National Assembly's Culture, Sports and Tourism Committee, stated, "Advertisements for U.S. lottery purchase agencies, which are spreading on YouTube and social networking services (SNS), are clearly illegal and violate the Criminal Act. The government's inaction despite knowing this amounts to tacit approval."
Article 248 of the current Criminal Act completely prohibits the sale, brokerage, and advertisement of overseas lotteries. However, some platforms continue to expose advertisements that promote lottery purchases and prize collection under banners such as "legal investment" and "official certification agency."
Assemblyman Jung pointed out, "The only lottery permitted by the government is the domestic Lotto, but now YouTube algorithms are running the lottery market. If the government, fully aware of the illegality, stands by and does nothing, this is not just incompetence but acquiescence."
In reality, there have been a series of cases in which consumers using overseas lottery agency advertisements have suffered damages such as non-payment of winnings, refusal of refunds, payment fraud, and personal information leaks. However, the Korea Communications Standards Commission has not intervened, citing issues of "freedom of expression," and the Ministry of Culture, Sports and Tourism maintains that "it is not the responsible ministry." It has also been confirmed that the National Police Agency has no record of enforcement activities.
Assemblyman Jung criticized, "If each ministry shirks responsibility and does nothing while obvious harm is occurring to the public, this is not mere indifference but is close to complicity."
Assemblyman Jung called on the government to take four actions: ▲ establish a system to completely block illegal overseas lottery advertisements ▲ conduct an investigation and request prosecution of agency businesses ▲ amend the Lottery Act and platform responsibility regulations ▲ launch campaigns warning of illegality and damage cases. He particularly emphasized the need to move away from self-regulation that relies on platform operator reports and to introduce a "government-mandated deletion system."
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Assemblyman Jung stated, "The state may sell dreams, but it must not encourage illegal dreams. If the government leaves illegality unchecked and later claims ignorance, public trust has already been lost."
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