South Korea probes Polymarket users for illegal gambling

South Korean police have launched the country's first criminal investigation into domestic users of the prediction market platform Polymarket, probing whether their activity constitutes illegal gambling under national law. The Gangwon Provincial Police Agency is leading the nationwide investigation following a request from the National Police Agency.

Under South Korean law, all betting activity outside the government-authorized Sports Toto is strictly prohibited. Sports Toto, operated by the Korea Sports Promotion Foundation, carries a maximum betting limit of 100,000 won. Authorities are examining whether participation on Polymarket violates Article 246 of the Criminal Act, which covers gambling offenses and carries potential fines of up to 10 million won. The investigation targets individual users across the country, not just within Gangwon Province.

Polymarket, which operates on the Ethereum blockchain, allows users to trade positions on the outcomes of real-world events like elections and sports. While the platform is accessible in South Korea without IP restrictions and holds legal status in the United States, it is not authorized locally. Users typically place bets using...