Polymarket Users Face Gambling Probe in South Korea
SEOUL – South Korean police are investigating local users of the prediction market platform Polymarket over suspected illegal gambling linked to election betting activity.
LISTEN TO THIS ARTICLE:The investigation is being led by Gangwon Provincial Police at the request of the National Police Agency. Reports indicate that authorities are focusing on South Korean users of the platform rather than taking direct enforcement action against Polymarket itself.
The case is believed to be the first known investigation in South Korea involving domestic users of the crypto-based prediction market platform.
Election Markets Draw Regulatory Attention
The investigation centres on betting activity tied to South Korea's June 3 local elections. Polymarket allows users to trade event contracts based on the outcome of real-world events, including politics, sports, financial markets and cultural developments. South Korean authorities are examining whether participation in election-related markets amounts to illegal gambling under domestic law.
According to reports, Polymarket remained accessible in South Korea without users needing to bypass internet restrictions. Authorities are therefore examining whether residents violated gambling laws by placing wagers on political outcomes through the platform.
Trading volumes were significant. Polymarket's Seoul mayoral election market reportedly generated more than $52m in trading volume, while a broader market covering local election outcomes attracted a further $3m.
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Gambling Laws Leave Limited Exceptions
Under Article 246 of South Korea's Criminal Act, gambling offences can carry fines of up to 10 million won, although limited exceptions exist for minor recreational activity. Habitual gambling offences can result in heavier penalties, including imprisonment and larger fines.
South Korea generally permits betting only through authorized channels, including the government-backed Sports Toto system. Authorities have long maintained a strict approach towards unauthorized online gambling and overseas betting platforms.
A lawyer representing some of the users reportedly said the basic elements of a gambling offence may have been met, but noted there is little legal precedent involving Polymarket users in South Korea.
Prediction Market Debate Expands Globally
The investigation adds South Korea to a growing list of jurisdictions examining how prediction markets should be regulated. Authorities and regulators around the world continue to debate whether event contracts should be classified as financial products, gambling products or a separate category altogether.
Polymarket has already faced regulatory challenges elsewhere. Recently, Polymarket was hit with a Nevada injunction over prediction market contracts, while other countries have also taken action against the platform.
The South Korean case could become an important test of how gambling laws apply to users of global prediction market platforms that operate legally in some jurisdictions but remain restricted in others. While no charges, fines or convictions have been announced, the outcome may influence how regulators approach election-related prediction markets in the future.
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