Gold Mountain Casino in Jeju, South Korea, could have its gaming operations suspended for 3 months within days following an investigation into allegations that some staff cheated customers during blackjack games. The foreigner-only casino can still present grounds against the proposed penalty, according to information obtained by GGRAsia from the Jeju Special Self-Governing Province Government.
The provincial authority is reviewing the operator’s representations before determining the sanction. A Jeju official said the suspension could be reduced if mitigating circumstances are established, but the prescribed administrative penalty for the infringement is a 3-month pause in operations.
Blackjack Allegations Involve KRW100 Million
The case concerns allegations that casino employees cheated 3 Chinese customers out of approximately KRW100 million during blackjack games on June 7 and 8. The amount was equivalent to US$75,531 at the exchange rate cited in the report.
Initial reports had placed the alleged losses at KRW80 million. The provincial authority’s information put the amount at approximately KRW100 million, with the investigation concerning the conduct of some staff at the casino during those games.
The regulatory infringement under consideration involves the use of altered gaming equipment. According to the official who spoke to GGRAsia, this category of infringement carries an administrative penalty that can interrupt the casino’s gaming operations, separate from the criminal investigation connected to the allegations.
Operator’s Representations Remain Under Review
For a first infringement of this kind, the prescribed sanction is a 3-month operational suspension, subject to any accepted grounds for mitigation. The official stated that the government was still examining the casino operator’s submissions and could shorten the suspension if those submissions established mitigating grounds.
The province cannot extend the suspension beyond 3 months for a first infringement. A second regulatory violation, however, can lead to the revocation of the casino’s license.
The distinction leaves the operator facing a possible temporary halt rather than an automatic loss of its license in this case. Whether the full 3-month penalty is imposed remains subject to the authority’s review of the arguments presented by the casino.
Prosecutors Conduct a Separate Investigation
The same matter was referred to prosecutors in Jeju on September 11, the provincial official told GGRAsia. Prosecutors are conducting their own investigation into the case. That process is separate from the province’s consideration of an administrative penalty. The official explained that the regulatory sanction would be independent of the criminal investigation’s outcome and any later court ruling.
The proposed suspension does not depend on the completion of the prosecutors’ investigation. The provincial government is reviewing the regulatory infringement and the operator’s representations through its own administrative process.
Casino Changed Ownership in 2024
Gold Mountain Casino previously operated under the name Megaluck Casino, when it was run by Hong Kong-listed New Silkroad Culturaltainment Ltd. The operation was sold to local company Geumsan Co Ltd in 2024.
The ownership information appears in industry official data issued in May by South Korea’s Ministry of Culture, Sports and Tourism. The ministry holds overall responsibility for the country’s casino sector.
Jeju has exercised certain elements of regulatory control over the island’s foreigner-only casino industry since 2009. The provincial government has licensing oversight of the island’s local casinos.
