South Korean police probe Polymarket users for illegal…

South Korean police have launched their first criminal investigation into domestic users of Polymarket, the world's largest prediction market, on suspicion of illegal gambling. The probe is led by Gangwon Provincial Police at the request of the National Police Agency, according to ChosunBiz.

Why it matters

Under Article 246 of South Korea's Criminal Act, placing bets on any platform other than the state-sanctioned Sports Toto is illegal, exposing users to fines of up to 10 million won (roughly $7,200). Crucially, Polymarket is accessible in South Korea without any IP circumvention — meaning users had no technical barrier to entry, which strengthens the prosecution's case that participation was knowing and deliberate. The platform's markets on South Korea's June 3 local elections alone drew betting volume in the tens of billions of won, giving investigators a concrete, high-profile event to anchor the case.

Market impact

This is the first enforcement action of its kind targeting a prediction market's user base in South Korea, and it sets a precedent that could chill adoption across the region. For Polymarket specifically, a successful prosecution would signal that crypto-native prediction markets are not insulated from local gambling laws simply because they operate on-chain. Regulators in other jurisdictions watching Seoul's move may accelerate their own reviews — the combination of election-related markets, accessible crypto rails, and a clear statutory hook makes this a template case.

Source: [[단독] 경찰, 예측 시장 ‘폴리마켓’ 이용자 불법도박 혐의로 수사 - 조선비즈](https://biz.chosun.com/stock/finance/2026/06/05/XPEHXM2VPZE2TEMGHEU4MXJT7I/)