Polymarket users in South Korea face illegal betting charges
South Korean police have opened cases against 26 local Polymarket users on suspicion of illegal gambling. The cybercrime investigation unit of the Gangwon Provincial Police Agency has already referred cases involving 18 people to prosecutors.
According to Asia Business Daily, the 26 users placed a combined 17.6 billion won ($12.7 million) in bets on the prediction market. The largest cumulative amount wagered by a single individual was about 5.7 billion won ($4.1 million).
Police believe that betting on yes-or-no contracts on Polymarket falls under Article 246 of South Korea’s Criminal Act covering illegal gambling. According to law enforcement, users risk their own funds on the outcome of events they cannot control.
Users do not consider Polymarket a gambling platform
The individuals involved disagree with that interpretation. They argue that Polymarket should be treated as a crypto-based derivatives market rather than a gambling platform. As an argument, they point out that contracts are traded through an order book and positions can be closed before settlement.
If the cases reach court, the key issue may be whether Polymarket should be classified as a gambling platform or a derivatives market.
About a month ago, South Korea’s media regulator ordered domestic access to Polymarket to be blocked, saying the service created an environment for illegal gambling.
Polymarket, in turn, argued that it should not be considered a gambling platform in South Korea. The company noted that the service is non-custodial, does not accept payments in Korean won and no longer offers a Korean-language interface.
When a prediction turns into an investigation
Prediction-market users are increasingly finding themselves at the center of investigations over suspicions that they used non-public information or attempted to influence the outcome of contracts.
For example, in 2026, U.S. authorities charged Google employee Michele Spagnolo, who, according to the CFTC and Justice Department, made about $1.2 million from bets using non-public company information. In another case, a U.S. serviceman was accused of making more than $400,000 on Polymarket contracts while possessing classified information about a U.S. military operation.
There have also been more unusual cases. In France, police are investigating possible interference with weather sensors at Charles de Gaulle Airport after unusual temperature spikes allowed some Polymarket users to earn thousands of dollars on weather-related contracts.
A similar scandal occurred on rival platform Kalshi: Donald Trump’s teleprompter operator came under investigation after betting on words and phrases from upcoming presidential speeches that he had access to through his job. He later agreed to return more than $107,000 in profits and pay a fine.
Earlier, a Polymarket insider-trading case drew widespread attention.
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