South Korea moves to block Polymarket, an overseas prediction market platform, citing illegal gambling concerns. Korea’s communications regulator determines the platform’s structure and operations amount to gambling, even though Polymarket is described as noncustodial and uses smart contracts.
The Korea Media and Communications Commission and related bodies conduct a telecommunications review and conclude Polymarket provides information intended to facilitate gambling under the Criminal Act. The regulator also finds the service includes information aimed at facilitating activities similar to sports betting under the National Sports Promotion Act. In response, it orders domestic internet service providers to restrict access to the site.
Outlets describe the reasoning in slightly different terms, including how the platform’s “winner-take-all” design can encourage gambling behavior. Users trade contracts linked to events spanning politics, economics, international relations, sports, elections and weather. Korea Times points to examples involving domestic-themed markets, such as contracts related to Seoul’s rainfall, as evidence used in the regulator’s assessment. Cointelegraph similarly highlights the regulator’s view that Polymarket’s operations fit the definition of illegal gambling.
