South Korean police charge 26 Polymarket users for illegal gambling: report

South Korean police have reportedly booked 26 local users of Polymarket on suspicion of illegal gambling.

According to a report from Asia Business Daily, Gangwon Provincial Police Agency's cyber investigation unit has referred 18 of the individuals they booked to prosecutors. 

The 26 individuals placed combined wagers of about 17.6 billion won ($12.7 million) on the prediction market. The largest cumulative stake by one individual was about 5.7 billion won ($4.1 million).

South Korean police said that betting on yes-or-no event contracts on Polymarket constitutes illegal gambling under Article 246 of the country's Criminal Act, as users stake their assets on outcomes they cannot control.

Not gambling, users say

On the other hand, the charged individuals reportedly argued that Polymarket should be seen as a crypto-based derivatives market rather than gambling, because contracts on the platform trade on an order book and can be closed before they expire.

Whether that distinction holds will be the key issue if the cases go to court, the report said.

The news came about a month after South Korea's media regulator ordered a block on domestic access to Polymarket after determining that the platform created an illegal gambling environment. 

At the time, Polymarket reportedly argued that it should not be seen as a gambling platform in Korea because it is non-custodial, does not accept Korean won payments, and no longer offers Korean-language services.

The Block has reached out to Polymarket for comment.