Polymarket Banned in South Korea — Why Global Regulators Are Closing In on Prediction Markets

Key Takeaways

• South Korea has banned Polymarket.
• France, Australia, Germany, and Spain have also restricted prediction markets through licensing requirements.
• Kalshi faces court-ordered limits in Washington as Coffeezilla accuses the industry of repackaging gambling as financial trading.

South Korea has ordered internet providers to block Polymarket, ruling that the blockchain-based prediction platform gives domestic users access to illegal gambling.

The August 18 decision adds South Korea to a growing group of jurisdictions that treat event contracts as bets rather than financial products.

It comes as Polymarket rival Kalshi fights state-level restrictions in the US, and commentators such as YouTuber Coffeezilla speak out against the blurring of the line between wagering and trading.

Polymarket Banned in South Korea Over Gambling Concerns

Korean regulators approved an access-blocking order after concluding that Polymarket could violate provisions of the country’s Criminal Act and National Sports Promotion Act.

Polymarket lets users buy and sell yes-or-no positions tied to future events, including elections, sporting results, and economic developments.

The Korean commission said that design converts events outside a user’s control into sharply divided financial outcomes, making the service function like speculative betting.

Officials also focused on Polymarket’s role in running the marketplace.

Although transactions use crypto assets and smart contracts, the commission found that the company still selects markets, determines trading rules, and benefits financially from activity on the platform.

Polymarket disputed that interpretation.

The company argued that its peer-to-peer structure means it does not act as a conventional gambling operator or take direct possession of customer funds.

It also said it does not issue sports lottery tickets and does not support payments in Korean won.

However, the commission rejected those defenses, stating that a decentralized settlement system does not place a service outside Korean law.

Where Else Is Polymarket Banned, and Why?

Polymarket is unavailable or restricted in dozens of markets, but the legal mechanism is not the same everywhere.

In some countries, regulators have ordered internet service providers to block the site.

In other cases, Polymarket applies its own geofencing to comply with local laws or international sanctions.

Its geographic restrictions page cites gambling rules, customer verification standards, and sanctions as reasons for limiting access.

France imposed one of the most recent direct blocks.

On July 16, 2026, the country’s National Gambling Authority instructed internet providers to cut access after classifying Polymarket as an unauthorized gambling service.

The regulator raised concerns about addiction, platform integrity, and possible manipulation of weather-related markets.

The French authority said prediction markets cannot legally operate there without approval.

Australia was one of the first to act in August last year, when the Australian Communications and Media Authority asked local internet providers to block it.

The ACMA warned that customers using illegal offshore services may lack the protections available to those using licensed operators. Meanwhile, Germany’s gambling regulator has taken a similarly strict position.

Spain also temporarily blocked Polymarket and Kalshi in May 2026 while investigating whether they operated without the required gambling authorization.

Spanish officials said a licensed operator would need safeguards such as identity checks and controls protecting minors and self-excluded gamblers.

Kalshi Faces Its Own Regulatory Troubles

Polymarket is not the only prediction platform to be banned and face government resistance.

In Washington state, King County Superior Court Judge John McHale ordered Kalshi to withdraw several of its most popular contract categories from local users.

The restrictions cover sports, elections, politics, entertainment, culture, technology, and science, plus “mentions” markets based on whether a public figure will use a particular word.

Kalshi can continue to offer contracts tied to commodities, climate, economics, and finance.

Washington argues that Kalshi’s contracts are unlicensed online wagers and that some of its advertising falsely implied the activity was legal in the state.

Kalshi has disputed the ruling and is considering further legal options.

The Washington fight is part of a broader federal-versus-state dispute, with the company also seeing enforcement in jurisdictions including Nevada and New York.

Coffeezilla Says Prediction Markets Rebrand Gambling as Trading

The legal pressure has been accompanied by a cultural backlash.

In a recent video, Coffeezilla argued that prediction-market companies are making gambling more socially acceptable by wrapping it in the language and interface of investing.

The YouTuber argued that the word “prediction” gives influencers and financial brands a convenient way to endorse products they might avoid if they were presented as ordinary sportsbooks.

His criticism also extended to consumer safeguards.

Coffeezilla questioned why Kalshi’s self-exclusion option did not offer a permanent ban and instead topped out at one year.

To him, that feature reinforced the idea that the industry wants users to view a break from the platform as temporary, even when compulsive behavior may be involved.