Legal

South Korea opens first Polymarket gambling probe targeting domestic users

Updated 2h ago

South Korean police have opened the country's first illegal gambling investigation targeting domestic users of the crypto-native prediction market Polymarket rather than the platform itself. Authorities are pursuing fines of up to 10 million Korean won, approximately $6,495, under Article 246 of the criminal law. The probe comes after local betting on Polymarket election contracts exceeded $52 million, and marks the first time South Korean law enforcement has moved against individual users of the platform. Under South Korean law, betting on platforms other than Sports Toto is illegal. The investigation was first reported June 5.

Why this matters?

Individual Polymarket traders in South Korea now face direct criminal exposure under Article 246, ending the de facto safe harbor that shielded users while regulators focused on platforms. Any sustained enforcement campaign would force domestic bettors onto VPNs or local alternatives like Sports Toto, shrinking Polymarket's addressable base in a top-five crypto market.

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