South Korean police investigate Polymarket users for illegal gambling

The South Korean police have launched an investigation into local users of Polymarket, the world’s largest prediction platform. The users are suspected of illegal gambling, and this is the first time South Korean authorities have pursued such a case against users of this platform.

Gangwon police lead the investigation

The investigation is being led by the Gangwon Provincial Police, at the request of the National Police Agency. The suspects live across the country, including in Gangwon Province. Polymarket is legal in the US, but in South Korea it falls under the category of illegal gambling because the platform is not an officially recognised gambling service.

Under South Korean law, gambling on platforms other than the state-sponsored Sports Toto is prohibited. Users who are caught face a fine of up to 10 million won under Article 246 of the Criminal Code. Notably, Polymarket is readily accessible in South Korea without using a VPN or other circumvention methods.

High stakes around local elections

The investigation appears to have been prompted in part by the massive activity on the platform surrounding the South Korean local elections on 3 June. According to ChosunBiz, which first reported on the investigation, the total betting volume on those markets reached tens of billions of won.

It is not yet clear exactly how many users are being scrutinised. In any case, the case signals that South Korean authorities are not leaving foreign prediction platforms unchecked if local residents are actively using them.