South Korea’s gaming industry is increasingly going overseas, thanks to a ban on play-to-earn games and blockchain-based games.
Although Korea is among the globe’s top markets for gaming, ranking fourth worldwide for video games, the ban stems from a fear about youth addiction to gambling.
The Covid-19 pandemic saw an uptick in South Korean teenagers being treated for gambling addiction, the Korea Herald reported. Between 2017 and 2021, more than 7,000 Korean adolescents underwent treatment for addiction.
Revenue from gambling stands at $14 billion a year in the country.
Despite the meteoric success of blockbuster play-to-earn titles like Axie Infinity, the South Korean government is constraining domestic games.
More than a decade ago, South Korea levied the so-called “Shutdown Law,” which prohibits game players under 16 from playing games online from midnight until sunrise. Earlier this year, the government repealed this law.