South Korean police launched the country's first illegal gambling investigation into domestic Polymarket users on June 5. The probe targets residents who placed bets on June 3 local election outcomes using cryptocurrency transactions.
The Gangwon Provincial Police Agency is leading the investigation at the request of the National Police Agency. Authorities are tracing crypto transaction records to identify users nationwide. Those identified could face fines of up to 10 million won, or about $6,500, under Article 246 of the Criminal Act. One Polymarket market on the 2026 Seoul mayoral election alone recorded $52.2 million in volume. The case marks a shift toward user enforcement after earlier efforts focused on blocking platforms. It comes amid rising global trading volumes on prediction markets like Polymarket and Kalshi.
