South Korean police are referring more than 20 domestic Polymarket users to the Prosecution Office on suspicion of illegal gambling.
Under current South Korean law, placing bets through platforms other than Sports Toto, operated by the Korea Sports Promotion Foundation (KSPO) and subject to a KRW 100,000 ($75) betting limit, is illegal. Polymarket users found to have violated Article 246 of the Criminal Act could face fines of up to KRW 10m.
Legal experts are divided over how prosecutors will handle the cases. Some expect convictions, arguing that Polymarket meets the legal definition of gambling under South Korean law. Others believe prediction markets could be treated as investments in virtual asset derivatives rather than gambling.
The investigation, which began in June, is believed to be South Korea's first nationwide probe targeting Polymarket users.
In August, regulators ordered internet service providers to block access to Polymarket after determining that its winner-takes-all prediction contracts fall under the Criminal Act and the National Sports Promotion Act.
The Korea Communications Commission also rejected arguments that the platform falls outside South Korean jurisdiction because it no longer offers a Korean-language interface or accepts payments in Korean won. The commission noted that users could still place bets on events related to South Korea.
The latest developments form part of the country's broader efforts to combat illegal online gambling and scam-related activities. Last month, authorities introduced a nationwide youth gambling reporting program while continuing enforcement actions against unauthorized online gambling services.
South Korea's National Police Agency launched a youth cyber gambling prevention campaign featuring esports player Lee Sang-hyeok, known as Faker
