[NEWS]South Korea Opened a Review on Polymarket Over Illegal Gambling Concerns

[acroman08]

Looks like another country might ban Polymarket. According to the article, the Korean Communications Standards Commission is reviewing whether Polymarket promotes gambling and breaks Korea's gambling law. They also said that they are doing a detailed review because "Polymarket takes the newer form of a prediction market".

I am guessing that if they found Polymarket does promote gambling, they will ban the prediction in their country, just like how other countries have banned Polymarket after being labelled as a gambling platform.

The list of countries banning prediction markets like Polymarket is increasing. I wonder if they'll ever register as a gambling platform at some point if more countries ban them for violating the gambling laws in those countries.

South Korea’s Korea Communications Standards Commission has opened a review of global prediction-market platform Polymarket. The move is aimed at determining whether the service constitutes an illegal gambling site under domestic law.

A commission official told Bloomingbit by phone on May 21 that a complaint related to Polymarket had recently been filed and the review had begun. The agency is also looking at overseas regulatory cases and assessing whether the platform could be deemed to encourage gambling.

Polymarket is a blockchain-based prediction-market platform where users wager money on the outcome of specific events, including the U.S. presidential election, interest-rate decisions, sports matches and cryptocurrency prices. Users place real-time bets using stablecoins and receive returns based on the actual outcome.

Polymarket remains accessible in South Korea without significant restrictions and offers a Korean-language service. Even if a platform operates on overseas servers, it can still fall under the commission’s oversight if it supports Korean and targets users in the country.

The legal review is likely to require extra caution because, unlike conventional illegal gambling sites, Polymarket takes the newer form of a prediction market. The commission official said the platform differs from a typical gambling site and therefore requires a detailed review. Even so, it could still be viewed as a new type of gambling-related site, the official said.

The market for such prediction platforms is expanding rapidly. According to Bernstein, global prediction-market trading volume tripled from a year earlier to $51 billion last year. The market is forecast to grow to $240 billion this year, maintain annual growth of 80% and reach $1 trillion by 2030.

As the market has grown, regulators around the world have stepped up their response. The concern is that prediction markets sit uneasily on the line between financial investment and speculative gambling. France, Germany, Italy, India, Brazil, Ukraine, Australia and Argentina have already classified Polymarket as an illegal gambling site and blocked access entirely.

Pressure is also building in the US. State governments including Minnesota, Wisconsin and Nevada have determined that sports-event contracts on prediction-market platforms violate gambling laws, leading to cease-and-desist orders or lawsuits.

Industry participants say the commission’s review could result in tougher measures in South Korea, including blocking access to Polymarket. Jin Hyun-soo, managing partner at Decent Law Firm, told Bloomingbit that access could be blocked under the authority of the Korea Communications Standards Commission if Polymarket provides Korean-language services or conducts business in South Korea. If the company continues operating without reviewing domestic regulations, it could effectively be forced out of the Korean market, he added.

[mirakal]

If this continues, the market of Polymarket could drop significantly, especially if the regulation in that country is very strict.

They have been penalized before if I am not mistaken, before they were allowed to operate in the US again. But some of their markets, even if they attract bets, are not always morally aligned with what people believe is acceptable. Some markets could even be manipulated or create chaos just for that bet to win.

I don’t know, maybe banning is not enough and they should also be penalized. That is the only way it can serve as a wake-up call, because if the only consequence is a ban, some users can still access it and place bets, especially if Polymarket keeps its reputation of paying winners.

[Charles-Tim]

The list of countries banning prediction markets like Polymarket is increasing. I wonder if they'll ever register as a gambling platform at some point if more countries ban them for violating the gambling laws in those countries.

Why should prediction market sites registered as a gambling site when they are not totally not about gambling? In fact, they are similar to trading than gambling but they are like in-between. Maybe they may fed up and register in some countries (but not all countries) as gambling sites, but it is worth knowing that they are not gambling sites. Only just that people are thinking they are gambling sites.

[GxSTxV]

The list of countries banning prediction markets like Polymarket is increasing. I wonder if they'll ever register as a gambling platform at some point if more countries ban them for violating the gambling laws in those countries.

Why should prediction market sites registered as a gambling site when they are not totally not about gambling? In fact, they are similar to trading than gambling but they are like in-between. Maybe they may fed up and register in some countries (but not all countries) as gambling sites, but it is worth knowing that they are not gambling sites. Only just that people are thinking they are gambling sites.

I have a different view on this matter, Polymarket or any similar platforms are running events with a possibility to put your money on one or multiple sides, then when the results come out, winners receive an outcome. Isn’t this a gambling thing? You are betting on things to happen with luck and some stats analysis but mostly luck.

I believe that anything related to luck, choices and money is more closer to be a gambling things than anything else…

[Charles-Tim]

I have a different view on this matter, Polymarket or any similar platforms are running events with a possibility to put your money on one or multiple sides, then when the results come out, winners receive an outcome. Isn’t this a gambling thing? You are betting on things to happen with luck and some stats analysis but mostly luck.

I believe that anything related to luck, choices and money is more closer to be a gambling things than anything else…

In trading, you are betting on the market to either go up or down. Is that not also gambling? In prediction market, as the event is not favoring you, your money will be reducing just like in trading. As the even is favouring you, your money will be increasing gradually. It is not like the cash out on gambling sites that you will not see there at anytime which is completely controlled by the gambling site, as the event has not ended, you will always see your money on prediction markets which you can cashout. That makes it not the same as gambling. Also it is full of live events, which make it also kind of different from trading and similar to gambling. It is better it is given a separate name which is prediction markets. Did you think the CFTC chairman in United States does not have any good reason he is defending prediction markets not to be gambling?

[Fivestar4everMVP]

Looks like another country might ban Polymarket. According to the article, the Korean Communications Standards Commission is reviewing whether Polymarket promotes gambling and breaks Korea's gambling law. They also said that they are doing a detailed review because "Polymarket takes the newer form of a prediction market".

I am guessing that if they found Polymarket does promote gambling, they will ban the prediction in their country, just like how other countries have banned Polymarket after being labelled as a gambling platform.

The list of countries banning prediction markets like Polymarket is increasing. I wonder if they'll ever register as a gambling platform at some point if more countries ban them for violating the gambling laws in those countries.

If Polymarket is not registering as a gambling platform, then its completely their fault if they keep getting banned by countries that layer realize that they are nothing but a gambling platform because  this is exactly what they are.

I mean, if Polymarket is not a gambling platform, then what are they? Gambling like sports betting requires a player to predict the outcome of an event, which in sports betting case is sports, but in Polymarket style, it's predicting outcomes of real world events which sometimes, sports is also among, and you stake money on your prediction, when your prediction doesn't come to pass, you lose that money, but when it does come to pass, you win more money than you staked, earning profit.
How is this different from gambling? Polymarket should simply declare their self as a gambling platform and register as such so they could stop getting banned even from countries where gambling is allowed.

[yahoo62278]

The list of countries banning prediction markets like Polymarket is increasing. I wonder if they'll ever register as a gambling platform at some point if more countries ban them for violating the gambling laws in those countries.

Why should prediction market sites registered as a gambling site when they are not totally not about gambling? In fact, they are similar to trading than gambling but they are like in-between. Maybe they may fed up and register in some countries (but not all countries) as gambling sites, but it is worth knowing that they are not gambling sites. Only just that people are thinking they are gambling sites.

IMO the fact that they take money makes them a gambling site. If the predictions were not for money then I would agree that they should never have to or consider registering as a gambling site.

[yhiaali3]

It appears that most countries are moving towards registering prediction markets as gambling sites. Although they are actually closer to futures trading than to gambling, or fall somewhere in between, most countries view them as gambling sites and tend to ban them because of manipulation.

Prediction markets have seen tremendous growth in the past period, and this seems to worry governments because they carry a high-risk rating and are full of manipulation and internal corruption. Therefore, they will either be subjected to strict regulatory conditions or they will be banned.

[tread93]

If this continues, the market of Polymarket could drop significantly, especially if the regulation in that country is very strict.

They have been penalized before if I am not mistaken, before they were allowed to operate in the US again. But some of their markets, even if they attract bets, are not always morally aligned with what people believe is acceptable. Some markets could even be manipulated or create chaos just for that bet to win.

I don’t know, maybe banning is not enough and they should also be penalized. That is the only way it can serve as a wake-up call, because if the only consequence is a ban, some users can still access it and place bets, especially if Polymarket keeps its reputation of paying winners.

Well they were thinking of doing what was called a sin tax on only fans in the US at one point an di wonder if any such tax or financial penalty would every apply here to polymarket. Its interesting topic, completely innovative platform like this always takes a while to gain adoption. I mean it took Bitcoin 1p years to really gain momentum and these markets are still in their infancy

[PostQuantumBTC]

It appears that most countries are moving towards registering prediction markets as gambling sites. Although they are actually closer to futures trading than to gambling, or fall somewhere in between, most countries view them as gambling sites and tend to ban them because of manipulation.

According to what I have read about prediction markets, the problem is not other thing that they are seeing them as gambling.

Prediction markets have seen tremendous growth in the past period, and this seems to worry governments because they carry a high-risk rating and are full of manipulation and internal corruption. Therefore, they will either be subjected to strict regulatory conditions or they will be banned.

I think you are confusing one thing for another.
The insider trading on prediction markets is not internal corruption.
The insider trading are coming from people like government officials that know about an event before it happens, it is not coming form the officials of the prediction market.

[coin-investor]

I am guessing that if they found Polymarket does promote gambling, they will ban the prediction in their country, just like how other countries have banned Polymarket after being labelled as a gambling platform.

If they are doing this because they are following the lead of other countries that ban prediction markets, then the likely outcome of their investigation is already predictable: the South Korean authorities will likely compare or base their decision on those countries.
It's a snowball effect that will hurt this new industry of prediction markets.

[fullfitlarry]

If they are doing this because they are following the lead of other countries that ban prediction markets, then the likely outcome of their investigation is already predictable: the South Korean authorities will likely compare or base their decision on those countries.
It's a snowball effect that will hurt this new industry of prediction markets.

Yes, but still though, they will have to go to the process as South Korea is known to have very strict law with regards to gambling or even crypto. So I don't think that it has to do with other countries outright banning Polymarket.

It's more of the authorities in South Korea protecting themselves and their citizens by this kind of prediction market that is obviously can be manipulated because of insider trading. So kudos to South Korea for doing their due diligence.

[AVE5]

Looks like another country might ban Polymarket. According to the article, the Korean Communications Standards Commission is reviewing whether Polymarket promotes gambling and breaks Korea's gambling law. They also said that they are doing a detailed review because "Polymarket takes the newer form of a prediction market".

I am guessing that if they found Polymarket does promote gambling, they will ban the prediction in their country, just like how other countries have banned Polymarket after being labelled as a gambling platform.

The list of countries banning prediction markets like Polymarket is increasing. I wonder if they'll ever register as a gambling platform at some point if more countries ban them for violating the gambling laws in those countries.

With the a lot craziness happening in the societies these days over gamblers and their irresponsible gambling exhibitions, it of course calls for well meaning authorities to take control of them by implying strict regulations if necessary to take absolute control foe the wellbeing of the masses.
It has also been in speculation that the poly markets has also begin to include gambling games in their platform which to my greatest ideal, in a highly gambling restricted states, prediction markets featuring gambling activities may face the legal sanctions of violating the policy for bypassing and hiding gambling activities inside of their poly markets.
This should also be one of the reasons some of these countries are banning the prediction markets.

[viljy]

Prediction markets would have no problems if they had initially positioned their business as a gambling game. But no. Instead, the forecasting markets (especially the Polymarket) positioned themselves almost as the most accurate prophet, bringing public benefit(!) with their accurate predictions.

Profit? Well, profit is supposedly secondary, because the main thing is the mission of Nostradamus! At the same time, having bets on the price of bitcoin on the first page, which is actually a binary option. Which also caused a lot of scandals and legislative bans because they were declared gambling.

Well, in order to fulfill the prophetic mission, of course, insider information is needed. This is naturally followed by manipulation of the results and insider information, which causes consequences, including legislative ones.

[iv4n]

The market for such prediction platforms is expanding rapidly. According to Bernstein, global prediction-market trading volume tripled from a year earlier to $51 billion last year. The market is forecast to grow to $240 billion this year, maintain annual growth of 80% and reach $1 trillion by 2030.

The numbers are huge, and it's not a surprise that more countries are starting to regulate or even ban prediction markets. We all know that governments want more control, taxes, stricter rules... and with prediction markets, there are some flags like insider trading, and other manipulations.

The fact is that these platforms are growing pretty fast, and billions of dollars are flowing through them... so this is just the beginning, we will see a lot more discussions & decisions about prediction markets.

[rbynxx]

Ban or legalize it as a gambling platform? I think these countries just simply want that for polymarket or other prediction markets to do but instead of complying afaik they are really emphasizing that they are not. Are they just avoiding tax same to what they're doing with the CFTC?

[$crypto$]

The market for such prediction platforms is expanding rapidly. According to Bernstein, global prediction-market trading volume tripled from a year earlier to $51 billion last year. The market is forecast to grow to $240 billion this year, maintain annual growth of 80% and reach $1 trillion by 2030.

The numbers are huge, and it's not a surprise that more countries are starting to regulate or even ban prediction markets. We all know that governments want more control, taxes, stricter rules... and with prediction markets, there are some flags like insider trading, and other manipulations.

The fact is that these platforms are growing pretty fast, and billions of dollars are flowing through them... so this is just the beginning, we will see a lot more discussions & decisions about prediction markets.

Insider trading.
Manipulation within the government.
Growth continues to increase every year.
Some countries cannot collect taxes even if the country is made into a prediction market in the polymarket.

How do countries that take this action decide? I think many governments want to be clear about the status of these polymarkets so that they are immediately registered in many regions and under government control.

[Zlantann]

The arrangement of masquerading itself as a prediction market while engaging in gambling services is slowly backfiring in some countries. Believe it or not, prediction markets are gambling platforms. Polymarket and others have been able to hide behind the name prediction market to avoid the regulation of many countries. They have been operating in many jurisdictions without a license and other regulatory requirements. India has blocked its services; now South Korea is reviewing its operation. Even in the US, where Polymarket is popular, there are agitations that its services should be reviewed and regulated.

With the amount of revenue these prediction markets generate, every country will want to take its own cuts through licenses and taxes.

[cryptomaniac_xxx]

The list of countries banning prediction markets like Polymarket is increasing. I wonder if they'll ever register as a gambling platform at some point if more countries ban them for violating the gambling laws in those countries.

Why should prediction market sites registered as a gambling site when they are not totally not about gambling? In fact, they are similar to trading than gambling but they are like in-between. Maybe they may fed up and register in some countries (but not all countries) as gambling sites, but it is worth knowing that they are not gambling sites. Only just that people are thinking they are gambling sites.

I have a different view on this matter, Polymarket or any similar platforms are running events with a possibility to put your money on one or multiple sides, then when the results come out, winners receive an outcome. Isn’t this a gambling thing? You are betting on things to happen with luck and some stats analysis but mostly luck.

Yes, that is the pure definition of gambling, putting money on the possible outcome. But the thing here with this market is that it's not just about sports betting as the traditional ways, but it involves a lot of events including politics.

I believe that anything related to luck, choices and money is more closer to be a gambling things than anything else…

So this is not just about luck, it's a game of manipulation. Those gamblers (not sure if we can call them gamblers though), but it's more of people that have inside track of information and then they bet a lot of money and obviously since they know what the future holds, they are going to win it.

[stompix]

Yes, that is the pure definition of gambling, putting money on the possible outcome. But the thing here with this market is that it's not just about sports betting as the traditional ways, but it involves a lot of events including politics.

So, if I were to start selling books in my butcher's shop, then I won't have to deal with health inspections, since it's not a butcher's shop, it's a library?
And even so, how is betting on the Oscars, on the Presidential elections, on who takes a dump in the street the next day not gambling and betting?

The funniest thing is how prediction markets have made a ton of people realize that trying to cash out on any event, stocks, elections, weather, is just gambling, there is no mmbo jumbo TA analysis or anythign else, it's just gambling and hope!