Authors: Hyejung Moon, Sung-Jin Choi

Abstract: This study had conducted the case analysis for finding the cause of huge development of lottery business in the world. The research analysis is based on the gambling industry regulation model. (Kingma, 2008) The gambling industry had transformed throughout the time, from the Prohibit Model, the Alibi Model and the Risk Model. Scopes of case study are 30 countries among members of world lottery association. The result of case analysis is as followed: as identified by the theoretical contemplation, the lottery businesses of the world transformed from the Prohibit Model to the Alibi Model and to the Risk Model. The Prohibit Model deals with a social problem, such as gambling that proliferated before the establishment of governments during the post-World-War-2 period. The Alibi Model refers justified policy for the lottery issued for the public welfare after the establishment of modern nations. The Risk Model refers to the economic phenomenon after the spread of recent internet technology throughout not only the lottery industry, but also all areas of society and the international game market.
As a result of global lottery status analysis based on the review of preceding documents, it was confirmed that the global lottery market has transformed as described by the Risk Model. Under such international environment, the regulation such as annual sales cap contemplated in Korea is believed to be ineffective. The game market is growing day by day and the types of game are also multiplying. The lottery is also becoming an area of entertainment globally, and the global players can freely purchase lotteries of other jurisdictions through the internet. Globalization is no longer an option, but a matter of survival also in the lottery industry. Korea must join the governance of international gaming industry in a variety of perspectives, such as policy, system, culture and so on.

Published in: 한국전략경영학회 2014년도 춘계학술대회 발표논문집 251-285 (35 pages)

Date of Conference: 2014.4.