South Korean illegal gambling and prediction market crackups

South Korean authorities and lawmakers are addressing various forms of illegal gambling and unregulated money exchanges involving prediction-based platforms.

In September 2026, the Gangwon Provincial Police Agency booked 26 individuals for suspected illegal gambling on the prediction market platform Polymarket. Using blockchain analysis, investigators identified users who had staked approximately 17.6 billion won. While authorities classified these cryptocurrency wagers as gambling under the Korean Criminal Act, users argued the platform functioned as a “derivative investment market.”

In October 2026, a National Assembly audit revealed that illegal money exchange operations are persisting within sports prediction games that hold official ratings from the Game Rating and Administration Committee (GRAC). Representative Jung Yeon-wook reported that operators use internal messaging and “donation” features to bypass regulations, converting game winnings into cash through specific welfare organizations. The GRAC has since promised a full-scale investigation into approximately 88 sports prediction games to identify similar illegal bypass methods.