• The Journal of the Korea Contents Association
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• v.18 no.5
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• pp.34-45
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• 2018

In Korea, there are a lot of regulation on gambling industry. Among them, the most unique regulation is the CAP system. The purpose of CAP system is to minimize the social side effects of gambling industry. For that, National Gambling Control Commission controls the maximum number of business premises of gambling companies. The CAP system is a means of preventing excessive expansion of the gambling industry. The CAP system has lasted since 2009. This study investigate how the CAP system influence the structure of gambling industry. In result, after the CAP system carried out, the growth rates of gambling industry are similar to those of national GDP. And before the CAP system, the HHI index and CR index were decreasing trend. However, after the CAP system, the HHI index and CR index were not decreasing. That means the structure of gambling industry has been stable and settled. And there were few variation among the gambling companies in sales. In conclution, the CAP system influenced the gambling industry to be stable. There were few competition among the gambling companies in Korea. And the structure of gambling industry has been settled.