Safeguarding E-Sports from Corruption

In Republic of Korea

International Criminal Affairs Division Ministry of

Justice

Contents

Ⅱ. Case Study

Ⅰ. Introduction

Ⅲ. Q & A

Introduction

Korean E-Sports Market

• Total game revenue : $4.2 billion (2017)

• 6th biggest market in the world

• 7% of the world`s revenue in E-Sports

※ North America(37%), China(15%)

Introduction

Related Provisions

• Article 314 (Interference with Business)

(1) A person who interferes with the business of another by the

method of Article 313 or by the threat of force …

※ Article 313 : circulating false facts or through fraudulent means

• Article 357 (Receiving or Giving Bribe by Breach of Trust)

(1) A person who, administering another`s business, receives

property or obtains pecuniary advantage from a third party

… in response to an illegal solicitation concerning his/her duty

…

• Article 347 (Fraud)

(1) A person who defrauds another, thereby taking property or

obtaining pecuniary advantage from another …

• Article 247 (Setting up Places for Gambling, etc.)

A person who, for gain, sets up a place or space for gambling

…

Case Study

Summary

• Two cases of 「Starcraft II」 match fixings

- Both cases led to prosecution of pro-gamers

• Similarities in their features

- Involved parties, progress of investigation, methods of bribery,

etc.

Case Study

Defendants

[Case 1]

• Recognized 12 suspects

- 9 charged in custody, 2 charged without custody

[Case 2]

• Recognized 11 suspects

- 8 charged in custody, 2 charged without custody

Case Study

Progress of Investigation

• Case 1

2015. 8. Investigation began based on intelligence Arrested

one of the financiers

2015. 9.~10. Suspects charged in custody

(1 suspect put on wanted list)

• Case 2

2015. 10. Investigation and Prosecution on Case 1

2016. 1. Arrested the wanted suspect in Case 1

Second investigation began

2016. 1.~4. Recognized and prosecuted suspects

Case Study

Facts of Crime

Fund

Info.

[Coach]

[Gamer]

[Gamer][Broker]

[Broker]

Dividend

Bets

[Financier][Website]

[Bettor] [Recruiter]

Case Study

Facts of Crime

• Case 1

- Professional team coach : received bribe, delivered money,

introduced team members to brokers

- Pro-gamers : received money, intentionally lost

→ Interference with business(314), Receiving bribe(357)

- Brokers : enticed coach and gamers, delivered money

→ Interference with business(314), Giving bribe(357)

- Financiers : provided bribe, placed bets

→ Interference with business(314), Giving bribe(357), Fraud(347)

- Financier and Recruiters : recruited bettors, received betting

commissions

→ Setting up places for gambling(247)

• Case 2

- Pro-gamers : received money, intentionally lost

→ Interference with business(314), Receiving bribe(357)

- Brokers : enticed gamers, delivered money, placed bets

→ Interference with business(314), Giving bribe(357), Fraud(347)

- Financiers : provided bribe, placed bets

→ Interference with business(314), Giving bribe(357), Fraud(347)

- Financier`s Employees : placed bets

→ Fraud(347)

Case Study

Features of the Cases

• Famous professional gamer involved

- Top-notch gamers with experiences of trophies

• Organized crimes

- Thorough Division of roles

• Various methods of approach

- Disguising as fans or sponsors, etc.

• Illegal Internet gambling website used

Case Study

Significance

• Uncovered match-fixing of world-class gamers

- Confirmed serious moral hazard in E-Sports industry

※ MCST : 「4 Evils in Sports」

• Took stern legal action

- Revealed entire structure of match-fixing crimes

• Verified need for special countermeasures

- E-Sports-Association-level countermeasures required

Case Study

Media Coverage

Q & A