South Korea Charges 26 Polymarket Users Over Illegal Gambling
South Korean police have booked 26 domestic users of Polymarket on suspicion of illegal gambling, referring 18 of them to prosecutors, according to a report from Asia Business Daily.
What The Investigation Found
The Gangwon Provincial Police Agency's cyber investigation unit said the 26 individuals placed combined wagers of about 17.6 billion won ($12.7 million) on the prediction market platform.
The largest cumulative stake by a single user was about 5.7 billion won ($4.1 million).
Police said betting on yes-or-no event contracts on Polymarket meets the definition of illegal gambling under Article 246 of South Korea's Criminal Act, since users stake assets on outcomes they cannot control.
Users Argue It Is Not Gambling
The charged individuals have reportedly argued that Polymarket should be treated as a crypto-based derivatives market rather than a sports gambling platform, pointing out that contracts trade on an order book and can be closed before they expire.
Whether that distinction holds is expected to be the central issue if the cases proceed to court.
Casino Games Hub
A Month After The Platform Was Blocked
The charges follow South Korea's media regulator ordering a block on domestic access to Polymarket last month after ruling that the platform creates an illegal gambling environment.
At the time, Polymarket argued it should not be classified as gambling in Korea because it is non-custodial, does not accept Korean won payments, and no longer offers Korean-language services.
The case adds South Korea to a growing list of jurisdictions scrutinizing prediction markets, as regulators worldwide continue to debate where event-contract platforms sit between financial derivatives and gambling products.
