Polymarket eyes Japan market entry, appoints regional representative: Bloomberg

Polymarket has appointed a representative in Japan as it prepares to seek government approval to operate prediction markets in the country, according to Bloomberg.

Bloomberg reported Friday, citing sources familiar with the matter, that Polymarket views Japan as a major growth opportunity and is aiming to secure regulatory authorization to operate there by 2030.

Mike Eidlin, who has reportedly been working as head of Japan at Jupiter, has been appointed to lead Polymarket's efforts in the country, Bloomberg said.

The Block has reached out to Polymarket and Eidlin for comment.

Polymarket's official website currently lists Japan as one of the restricted jurisdictions where users are blocked from accessing the platform due to "regulatory requirements and compliance with international sanctions."

Japan's Penal Code stipulates that a person who habitually gambles could face up to three years in prison, while operating a gambling business is punishable by between three months and five years of imprisonment. 

However, exceptions apply to public lotteries and government-authorized horse racing. The pachinko industry has also operated in a legal gray area through arcade-style pinball machines and token exchange systems.

Competition

The reported expansion effort follows Polymarket's recent decline in monthly volume.

Polymarket recorded $9 billion in monthly volume in April, down from $10.57 billion in March, according to The Block's data dashboard. This was the first time Polymarket showed a monthly decline in volume since August last year.

Meanwhile, rival Kalshi's April volume rose to $14.81 billion from $13 billion in March.

Expand Chart

Polymarket has also returned to the U.S. market after the acquisition of federally-regulated derivatives exchange QCEX, through which it operates Polymarket US. The U.S. entity is currently operating under a limited capacity, and is reportedly in talks with the Commodity Futures Trading Commission (CFTC) to bring back its main exchange to the country.

Growing scrutiny

Despite its success, Polymarket continues to face scrutiny from global regulators.

In the U.S., Polymarket received multiple state-level enforcement actions from regional regulators that view its sports-related event contracts as illegal gambling. Notably, the CFTC and the Department of Justice sued Minnesota earlier this week over a newly signed bill that bans prediction markets in the state. 

South Korea's Korea Communications Standards Commission, the country's media watchdog, is examining whether Polymarket hosts illegal gambling content on its platform, according to local news outlet Bloomingbit.

Indian authorities have also blocked access to Polymarket in the country and are in the process of blocking Kalshi as soon as Friday, local media outlet ThePrint reported, citing an official from the Ministry of Electronics and Information Technology.