South Korean police reportedly book 26 Polymarket users in illegal gambling case
South Korean police target local Polymarket users
South Korean police have booked 26 local users of Polymarket, a prediction market where people bet on yes-or-no questions about future events, on suspicion of illegal gambling. The news comes from a report by Asia Business Daily, which was covered by The Block.
According to that report, the cyber investigation unit of the Gangwon Provincial Police Agency has referred 18 of the 26 people to prosecutors.
Key numbers in the case
- 26 local Polymarket users booked by police
- 18 of them referred to prosecutors
- About 17.6 billion won ($12.7 million) in combined wagers placed by the group
- About 5.7 billion won ($4.1 million) staked by the single largest user
Why police say the bets count as gambling
Police said betting on yes-or-no event contracts on Polymarket counts as illegal gambling under Article 246 of South Korea's Criminal Act, because users stake their assets on outcomes they cannot control.
The users say Polymarket is not a gambling site
The charged individuals reportedly argued that Polymarket should be treated as a crypto-based derivatives market instead of gambling. Derivatives are financial contracts whose value depends on an underlying asset or event.
Their argument is that contracts on the platform trade on an order book, meaning buyers and sellers post prices, and can be closed before they expire.
The report said that distinction would be the key issue if the cases go to court.
South Korea had already blocked access to Polymarket
The charges come about a month after South Korea's media regulator ordered a block on domestic access to Polymarket. The regulator made the order after deciding the platform created an illegal gambling environment.
At the time, Polymarket reportedly argued it should not be seen as a gambling platform in Korea because it is non-custodial, meaning it does not hold users' funds, it does not accept Korean won payments, and it no longer offers Korean-language services.
What is confirmed and what is still reported
The block on domestic access to Polymarket was ordered by South Korea's media regulator last month, and the regulator's stated reason was that the platform created an illegal gambling environment.
The details of the police action — the 26 people booked, the 18 referrals to prosecutors, the wager amounts and the users' arguments — come from the Asia Business Daily report and are described as reported rather than as confirmed by police. The Block said it reached out to Polymarket for comment.
What is still unclear
It is not publicly known whether police have issued their own statement or confirmed the figures in the report. Polymarket has not commented in the supplied material. It is also not yet clear whether the cases will reach court, where the question of whether Polymarket is a gambling service or a derivatives market would be decided.
Why this matters for prediction market users
The case centers on how regulators and police classify prediction markets. If they are treated as gambling, users in South Korea face criminal suspicion for taking part. If they are treated as derivatives, the platform and its users would fall under a different set of rules. The report said this distinction would decide the outcome if the cases go to court.
