Betting site 'Polymarket' blocked in South Korea for illegal gambling

South Korea's Media and Communication Deliberation Committee (방미심위) has ruled that the overseas betting site 'Polymarket' constitutes illegal gambling and has ordered its access to be blocked. The committee's decision came after its telecommunications deliberation subcommittee meeting on August 18.

Polymarket was found to fall under categories of information intended for aiding gambling and establishing gambling venues, as well as "similar acts" under the Promotion of Sports Betting Act. The committee cited Polymarket's "winner-take-all" profit structure, where financial gains and losses are extremely polarized based on events outside users' control, such as politics, economics, international relations, sports, elections, or weather, as a key factor in encouraging speculative behavior.

The committee also determined that Polymarket's operators manage the entire platform, including market creation and transaction rules. They facilitate the collection and disbursement of user funds through virtual asset deposit and withdrawal systems, thereby earning economic benefits from transaction fees.

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The application of domestic laws cannot be evaded based on whether Korean language services are provided or due to technical characteristics such as decentralized or centralized technology, or service methods.

"The application of domestic laws cannot be evaded based on whether Korean language services are provided or due to technical characteristics such as decentralized or centralized technology, or service methods," the committee stated. It further explained that Polymarket targets "domestic-specific issues such as 'Seoul rainfall in August'" and, with its win-or-lose structure based on chance, effectively provides an illegal gambling environment for domestic users.

Given these findings, the committee concluded that blocking access to Polymarket is unavoidable to protect users from the risks associated with the platform. The decision reflects South Korea's efforts to regulate online gambling and protect its citizens from potentially harmful or illegal online services.

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Given that it targets domestic-specific issues such as 'Seoul rainfall in August' and has a winner-take-all profit structure based on chance, it is effectively providing an illegal gambling environment for domestic users.