Chinese authorities have arrested 13 South Korean casino managers and 34 Chinese agents suspected of luring Chinese citizens into gambling in South Korea, China Central Television (CCTV) reported Monday.
The report said that police cracked down on criminal gangs from five South Korean casinos in June, who enticed Chinese citizens to gamble with free tours, free accommodations and sex services.
CCTV reported a casino's contract showed that buying 100,000 yuan ($15,770) in chips can get a one-time massage, 200,000 yuan can get a one-time service from a model or minor celebrity, while buying 500,000 yuan can get a three-day service from a model.
China's Criminal Law states that those who get more than 10 Chinese citizens to gamble at overseas casinos and receive commissions will be sentenced to up to 10 years in jail.
According to the CCTV report, the casino would provide Chinese gamblers greater incentives to receive even more gamblers by offering high kickbacks, and they would also assign regional representatives in China to seek Chinese agents to recruit new gamblers.
A Beijing-based travel agency allegedly played a key role in helping casinos transfer money. The agency would receive money from Chinese gamblers and transfer the money to a bank account. Then the money would be divided and transferred to different domestic underground banks and later transferred to an underground bank in South Korea, which would end up in South Korean casinos.
An official from the Chinese Consulate-General in Jeju Island said that after the island implemented a visa-free policy for Chinese visitors, a large number of Chinese tourists flooded the island where eight casinos cater to foreigners, over 80 percent of whom are Chinese.
Many gamblers who ran into disputes and sought help from the consulate lost an average of over 1 million yuan.
The report said that the eight casinos made over $1 billion in 2014. In 2013, a casino in Jeju was forced to close after Chinese police arrested four of its South Korean managers in China, which led to a sharp drop in Chinese gamblers.
