South Korea is stepping up its fight against online gambling. On August 18, the local media regulator decided to block access to Polymarket, while police are simultaneously continuing a program to combat online gambling among teenagers.
The regulator classified Polymarket’s mechanics as gambling. On the platform, users trade positions on the outcomes of political and economic events, sports matches, elections, weather, and other events using cryptocurrency.
According to the regulator, this model, in which profit or loss depends on the outcome of events that a user cannot control, encourages gambling behavior. It also took into account that Polymarket manages market creation and trading rules, provides a cryptocurrency deposit, withdrawal, and settlement system, and earns commissions from user transactions.
Polymarket objected to the block. The company stated that it had removed Korean language support, does not accept payments in won, and operates through non-custodial P2P transactions and smart contracts. The regulator said that the platform’s technical model and lack of a Korean interface do not allow it to avoid the requirements of local law.
At the same time, authorities are fighting the spread of online gambling among teenagers. From May 18 through August 31, the country is running a voluntary reporting program, and teenagers under 19 or their parents can independently report participation in online gambling to police via line 117.
When reviewing such cases, police consider the voluntary report, the amount of money spent on gambling, the teenager’s remorse, and progress in rehabilitation. As a result, police may issue only a warning or apply other more lenient measures. Program participants are also referred for counseling and treatment for gambling addiction.
During the first two months of the program, 806 reports were received. There were 294 reports registered in the first month and 512 in the second.
Well-known esports player Lee Sang-hyeok, known by the nickname Faker, has joined the campaign. On July 22, police appointed him an honorary police officer and an ambassador for cyber gambling prevention. Faker appears in promotional materials and helps promote the voluntary reporting program among teenagers.
