This paper investigates the determinants of the gambling addiction in six Korean gambling industries by regressing CPGI on various characteristics of games and consumers of gambling industries and draws policy implications to improve regulation on total sales of gambling industries.

We find that reimbursement rate, frequency of participation, transportation time, and permission of off-board games have significant positive effects on the gambling addiction. Lottery induces the lowest gambling addiction among six gambling industries because they have less participation time, transportation time, and frequency of participation, and no opportunity for off-board games.

Although National Gambling Control Commission has implemented regulation on total sales since 2009, an industry with lower prevalence rate of gambling addiction, i.e., lottery, has become downsized, while industries with higher prevalence rate of gambling addiction(casino, boat race, and cycle race) have increased in proportion to the total sales of six gambling industries. Therefore, we need a policy that correctly balances the proportion of gambling industries with a higher level of addiction.