South Korea has blocked domestic access to the prediction market platform Polymarket, with authorities determining that its services facilitate illegal gambling. The Korea Communications Commission announced the decision on August 18, following a review that concluded Polymarket’s structure encourages gambling behavior. The commission rejected Polymarket’s claims of being outside South Korean jurisdiction.
This action by South Korea is part of a growing international trend of regulatory intervention and legal challenges targeting prediction markets. France blocked Polymarket last month, and Australia and Germany imposed access restrictions in 2025, classifying the platform as an illegal gambling service. More than 30 countries, including Italy, Indonesia, and Argentina, have also restricted or blocked Polymarket.
The Korea Communications Commission stated that Polymarket’s structure, combined with wagers on events outside users’ control, “encourages gambling behavior.” The commission also asserted that technical changes or service methods do not exempt a platform from complying with domestic law, directly countering Polymarket’s argument that it operated outside South Korean jurisdiction after removing Korean-language services and disabling payments in Korean won.
The platform initially came under scrutiny in South Korea in late May when police began investigating users on suspicion of gambling. The country’s media watchdog subsequently opened its own review on July 6, leading to the August 18 decision.
Meanwhile, prediction markets are also facing legal pressure in the United States, though the legal questions vary by jurisdiction. In Baltimore, city officials and Mayor Brandon M. Scott filed separate lawsuits on August 13 against both Polymarket and its competitor Kalshi. According to CryptoPotato, the lawsuits accuse the platforms of offering sports betting without the necessary licenses in Maryland. The complaints also allege that both companies presented their products in a way that could mislead consumers into believing they were legal and regulated.
Baltimore is seeking penalties, consumer restitution, disgorgement, and other legal remedies. The city’s argument is that classifying these offerings as “event contracts” or prediction-market trades does not alter their fundamental nature as unlicensed sports betting. Kalshi is also facing a separate legal challenge from New York officials regarding its operations within the state.
These regulatory actions and legal battles highlight significant uncertainties surrounding prediction markets. Key questions remain about the exact nature of their “event contracts” and whether they constitute illegal sports betting across different jurisdictions. The outcomes of the lawsuits filed by Baltimore and New York officials are also pending, as is Polymarket’s response to the increasing international enforcement actions.
This global trend towards stricter oversight suggests a significant regulatory challenge in defining and governing prediction markets, which often operate in perceived grey areas. The increasing enforcement actions could impact the future operations and accessibility of such platforms.
Why This Matters
South Korean authorities have blocked domestic access to Polymarket, determining its services constitute illegal gambling. This action, alongside similar moves in France and ongoing legal battles in the US, underscores a global trend of regulatory intervention in prediction markets, raising questions about their legality and future operations.
Broader Context
South Korea’s decision to block Polymarket is part of a broader international pattern of regulatory scrutiny. Authorities in multiple jurisdictions, including France, Australia, and Germany, have classified Polymarket as an illegal gambling service or imposed access restrictions. In the US, cities like Baltimore are pursuing legal action, alleging that prediction markets operate as unlicensed sports betting platforms. These developments highlight the evolving regulatory landscape for prediction markets worldwide.
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