Teen gamblers turn to loan sharks, classmates and parents’ bank accounts

An 18-year-old in Gyeonggi Province borrowed 5 million won ($3,400) from about 10 illegal lenders at interest rates of up to 200 percent to fund his online gambling.

After facing threats and other forms of illegal debt collection, he reported his gambling to police under a temporary self-reporting program.

His case was just one of 806 cases submitted nationwide during the first two months of the government’s voluntary reporting program for underage online gambling, according to the National Police Agency. Of the total, 629 were reported by the teenagers themselves and 177 by their parents or guardians.

Reports rose sharply in the program’s second month, reaching 512, up 74 percent from 294 in the first month. Authorities believe growing public awareness of youth gambling helped bring previously hidden cases to light.

Other reports showed teenagers borrowing from classmates, taking money from parents and beginning to gamble while still in elementary school.

In Busan, a 14-year-old middle school student reported borrowing a combined 2 million won from 41 classmates. Police found that he had spent a total of 26 million won on online gambling sites.

The case came to light after a school police officer received information from a teacher about suspicious financial transactions and conducted an investigation involving the school’s students.

In Daegu, a 13-year-old said he had begun gambling in the sixth grade of elementary school in an attempt to make spending money. He had spent a total of 6.5 million won on gambling sites.

Another 14-year-old in Mungyeong, North Gyeongsang Province, reported secretly withdrawing 30 million won from his father’s bank account in dozens of transactions and using the money for gambling.

The government launched the voluntary reporting program May 18 and plans to continue it through Aug. 31. It is open to people under 19 who have engaged in online gambling, as well as their parents or guardians.

All reports are submitted through the 117 school violence reporting and counseling hotline.

Once a report is received, a school police officer and a gambling treatment counselor conduct an initial consultation and screening assessment. Depending on the results, the teenager may be referred to a gambling prevention and treatment center, a psychiatric addiction treatment program or debt adjustment support.

The program places greater emphasis on rehabilitation and treatment than criminal punishment.

When deciding how to handle a case, police will consider factors including the amount deposited into gambling sites, the teenager’s attitude and progress in treatment.

Each case will be reviewed jointly by a juvenile guidance review committee at the relevant police station, which may recommend lenient measures such as a warning or referral for summary proceedings.

School police officers and counselors from the Korea Problem Gambling Agency will also provide follow-up counseling and support to reduce the risk of relapse.