South Korean police refer Polymarket users for illegal gambling
Police have referred more than 20 users for prosecution after identifying US$13.1m in cumulative wagers among 26 suspects.
Key takeaways:
- South Korean police have referred more than 20 Polymarket users to prosecutors on illegal gambling charges.
- A nationwide investigation began in June under the direction of the Gangwon Police Agency. Cumulative wagers among 26 suspects reached KRW17.6bn (US$13.1m), including KRW5.7bn (US$4.2m) wagered by one individual.
- South Korea’s gambling laws restrict legal sports betting Sports Toto, which has a KRW100,000 (US$75) per-bet limit.
- Access to Polymarket has already been blocked by South Korean authorities. Individual users convicted of illegal gambling could face fines of up to KRW10m (US$7,500).
South Korea.- Police have referred more than 20 Polymarket users to prosecutors on illegal gambling charges in what are the first cases targeting participants in prediction markets in South Korea. The cases will test the application of South Korea’s gambling laws to event-based contracts.
Gangwon Police Agency have reportedly investigated 26 people since June. According to data submitted by the Korean National Police Agency, total cumulative wagers among the suspects reached KRW17.6bn (US$13.1m), with one high-roller placing bets totalling KRW 5.7bn (US$4.2m).
Under South Korea’s gambling laws, sports betting is illegal outside Sports Toto, which enforces a strict limit of KRW100,000 (US$75) per bet. Authorities view Polymarket contracts as conventional gambling under Article 246 of the country’s Criminal Act because they involve staking economic assets on uncertain future outcomes with financial gain or loss at stake. Individual users found guilty could face fines of up to KRW10m (US$7,500).
In August, the Korea Communications Commission ordered local internet service providers to block access to Polymarket. It said that the operator removing Korean-language support and won currency options did not exempt it from local laws as users could still place bets on domestic events.
Frequently asked questions (FAQs)
- Is Polymarket legal in South Korea? South Korean authorities consider Polymarket’s prediction contracts to constitute illegal gambling under Article 246 of the Criminal Act. The Korea Communications Commission also ordered internet service providers to block access to the platform in August.
- Why are Polymarket users being investigated in South Korea? Police argue that users stake economic assets on uncertain future outcomes in exchange for potential financial gains or losses, bringing the activity within South Korea’s existing gambling laws.
- What penalties can Polymarket users face in South Korea? Individuals convicted of illegal gambling could face fines of up to KRW10m (US$7,500), according to the article.
