South Korean police have launched an investigation into local users of prediction market platform Polymarket over suspected illegal gambling activities, marking what is believed to be the first enforcement action targeting the platform’s users in the country.
Authorities confirmed an investigation into Polymarket users by the Gangwon Provincial Police on June 5 after receiving a referral from the National Police Agency. Authorities report the investigation spans all of South Korea with users across the nation using Polymarket’s prediction markets.
While betting through Polymarket is legal in the United States of America, South Korean laws prohibit virtually all betting except for betting conducted through the state-run Sports Toto service. South Korean individuals that have been found guilty of illegal gambling by the South Korean Courts are subject to a fine of up to KRW 10 million (approximately USD $7,300) under Article 246 of the South Korean Criminal Act.
Some attorneys that represent users that are currently under investigation acknowledge that there could be evidence of a gambling offence under South Korean Criminal Laws but due to the lack of legal precedent for prediction markets, there are minimal precedential factors to leverage.
The Polymarket platform is still accessible directly from South Korea without the use of a VPN or some other method of circumvention.
The investigation of Polymarket users has increased significantly as it relates to the local elections held on June 3, with large volumes of betting activity being reported within election-related markets on Polymarket.
It appears that authorities are now willing to target individual users in connection with prediction markets in contrast to solely targeting the operators of prediction markets.