South Korea’s Lottery Sales Surge to US$3.3 Billion, Hits All-Time High in 2024

October 18, 2024 Philippines iGaming & Gambling

In the South Korean gambling sector, lottery sales experienced a significant increase in the first half of 2024. According to data released by the Ministry of Economy and Finance as cited by the Korea Times, lottery ticket sales reached 4.25 trillion won (US$3.3 billion). This figure is 26 percent higher compared to the previous year and 62 percent from 2020. This growth represents an all-time high for lottery sales in the country.

The continuous rise in lottery sales is striking when examined over the past several years. Sales have surged since 2020, demonstrating a clear upward trend. In the first half of 2020, sales amounted to 2.62 trillion won. This figure grew to 2.94 trillion won in 2021 and further climbed to 3.15 trillion won in 2022. The steady increase reflects changing attitudes toward lotteries and gambling as a whole in South Korea.

Experts attribute the rise in lottery sales to several factors. One major influence has been the impact of the COVID-19 pandemic on other forms of gambling, such as casinos and horse racing. As restrictions and health concerns limited access to these venues, many individuals turned to lottery tickets as a more accessible form of entertainment. The pandemic has also led to a shift in public perception regarding lotteries, with many viewing them as a legitimate chance for financial gain.

A recent survey conducted by the finance ministry’s lottery committee sheds light on how lottery winners plan to use their winnings. Among the winners of Lotto, South Korea’s most popular lottery, 35 percent indicated they intended to invest in homes or properties with their prize money. Additionally, 22 percent expressed intentions to pay off debts, while 12 percent planned to assist family members financially. These responses highlight the practical motivations behind participating in the lottery, as many see it as a pathway to improve their financial situations.

Almost 70% of lottery ticket sales were conducted online, with printed tickets following closely behind.

This year, lottery winners will be able to collect a staggering total of 2.26 trillion won, marking a 30.1% increase from last year’s total of 1.74 trillion won.

In South Korea, approximately 110 million lottery tickets are sold weekly for the upcoming draw.

On average, about 12 individuals secure the top prize, each taking home around 2.1 billion won.

Winners will receive the cash after applicable withholding taxes have been deducted. A tax rate of 22% is imposed on prizes ranging from 2 million to 300 million won, while those winning more than 300 million won face a higher rate of 33%.

Roughly two-thirds of the proceeds from ticket sales are allocated to support low-income individuals, people with disabilities, and ex-offenders, providing them with housing assistance, job training, scholarships, and other essential social programs.

About half of the total sales are awarded to winning ticket holders, with the remaining 7% allocated for marketing and operational costs.