TLDR
- South Korean police booked 26 Polymarket users on suspicion of illegal gambling
- 18 of the 26 were referred to prosecutors by the Gangwon Provincial Police Agency
- Combined wagers from the group totaled about 17.6 billion won, or $12.7 million
- The largest single stake by one user was about 5.7 billion won, or $4.1 million
- The charges follow South Korea’s block on domestic access to Polymarket last month
South Korean police have charged 26 local users of Polymarket with illegal gambling. The Gangwon Provincial Police Agency’s cyber investigation unit handled the case.
Of the 26 people booked, 18 have been referred to prosecutors. The remaining cases are still being processed, according to a report from Asia Business Daily.
Together, the group placed wagers totaling about 17.6 billion won. That converts to roughly $12.7 million.
One individual accounted for the largest share. That person staked about 5.7 billion won, or around $4.1 million, on the platform.
Why Police Say It’s Gambling
Police pointed to Article 246 of South Korea’s Criminal Act. That law covers illegal gambling activity.
Investigators said betting on yes-or-no event contracts fits this definition. Users are staking money on outcomes they cannot control or influence.
Polymarket lets people trade on the outcome of real world events. This includes elections, sports results, and other yes-or-no questions.
Users Push Back on the Label
The charged individuals disagree with the gambling classification. They argue Polymarket works more like a crypto derivatives market.
Their reasoning centers on how the platform operates. Contracts trade on an order book and can be closed before they expire, unlike a typical bet.
Whether that argument holds up will matter a lot. The report said this distinction could become the central issue if the cases reach court.
This is not the first time these users have faced scrutiny. The Gangwon police agency had already opened an investigation into local Polymarket users back in June.
The new charges show that probe has now moved into a formal legal process. Prosecutors will decide how to proceed with the 18 referred cases.
South Korea’s stance against Polymarket did not start with this case. Last month, the country’s media regulator ruled that the platform creates an illegal gambling environment.
That ruling led authorities to block domestic access to Polymarket entirely. South Korean users could no longer reach the site through normal channels.
Polymarket responded to that decision at the time. The company said it should not be treated as a gambling platform under Korean law.
Its reasoning included three points. Polymarket is non-custodial, does not accept Korean won as payment, and no longer offers services in the Korean language.
Those arguments did not stop the regulator’s block. It remains unclear if they will carry more weight in the current criminal cases.
The Block reported it reached out to Polymarket for comment on the new charges. No response had been published at the time of the report.
For now, the case sits with South Korean prosecutors. The outcome could shape how the country treats prediction market platforms going forward.
