The biggest decentralized prediction market in the world, Polymarket, has been classified as an unlawful gambling operator by South Korea’s media authority, which decided to prevent domestic access to the platform.
Polymarket’s winner-take-all contracts on events including politics, sports, weather, and elections, according to the Korea Communications Standards Commission’s August 18 ruling, encourage gambling-like behavior. Polymarket will face yet another regulatory setback as a result of the judgment, which requires South Korean telecom providers to limit access to the marketplace.
THE BLOCK: South Korea will block local access to Polymarket.
The Korea Communications Standards Commission, the country’s top media regulator, announced the decision today after ruling that prediction markets promote gambling. pic.twitter.com/P52tP4rzut
— The Block (@TheBlockCo) August 18, 2026
After months of investigation by South Korean officials, the conclusion was made. Following user concerns, the matter was initially formally reviewed in May. Prosecutors started looking into South Korean users of the platform around June.
The way Polymarket operates is at the heart of the controversy. Users purchase contracts that are dependent on how actual events turn out. They may profit if their forecast is accurate, but losing positions may lose all of their value. Because the outcome depends on circumstances that users cannot directly control, South Korean regulators said that this structure is similar to gambling.
Polymarket says, it is a peer-to-peer, non-custodial marketplace based on smart contracts. The company has also discussed steps it took to reduce its presence in South Korea, including discontinuing Korean-language services and hiding Korean-specific markets.
These arguments were rejected by the regulator. It stated that if the website successfully offers local consumers an illicit gaming environment, its technical nature does not automatically shield it from South Korean legislation.
Authorities used a market related to August rains in Seoul as an example. The presence of regionally targeted marketplaces was seen by regulators as proof that the site was aimed at South Korean users.
It is anticipated that the internet service provider would implement the access restriction. Those who try to circumvent the limitation by using VPNs may face legal consequences.
Although the legal justification varies by nation, the fundamental issue is the same: real-money prediction contracts might resemble gambling when users wager on uncontrollable occurrences.
Polymarket is facing challenges as a result of the judgment. The platform is drawing a lot of interest from investors and established financial institutions, but it is also dealing with regulatory issues in a number of regions. This interest has increased due to reports of a potential IPO.
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