Polymarket Sets Its Sights on Japan

Polymarket, the prediction market platform where users speculate on the outcomes of real-world events, is preparing for a major push into Japan despite increasing regulatory scrutiny in several countries.

Unlike traditional betting platforms focused on sports, Polymarket allows users to trade predictions on topics such as politics, finance, economics, and technology. Users can place forecasts on election results, central bank decisions, or even potential IPOs. While the platform resembles online betting, its creators describe it as a marketplace for forecasting future events.

According to Bloomberg, Polymarket has appointed a representative in Japan and aims to secure approval for legal operations in the country by 2030.

The expansion effort will reportedly be led by Mike Eidlin, currently head of Jupiter’s Japanese division. The company has already begun discussions regarding regulations and the possibility of entering the local market.

However, strict gambling laws remain a significant challenge. In Japan, illegal betting activities can result in severe penalties, including prison sentences. Exceptions exist for certain state-regulated activities such as lotteries and horse racing, while pachinko parlors have long operated in a legal gray area.

At the same time, Polymarket is facing mounting pressure globally. Authorities in India recently instructed internet providers and VPN operators to block access to the platform, classifying it as an illegal online betting service. Similar measures are reportedly being considered for Kalshi as well.

In Argentina, a court in Buenos Aires ordered the platform to be blocked for operating outside local gambling regulations. Restrictions have also been introduced in Colombia and Romania.

The company has also encountered difficulties in the United States. Minnesota became the first U.S. state to ban sports-related prediction markets, and federal regulators have started paying closer attention to the sector.

Despite the growing number of restrictions, Polymarket continues to expand its business. The company recently partnered with Nasdaq Private Market, allowing users to speculate on the valuations of private companies and the timing of their stock market debuts.

Reuters previously reported that Polymarket is exploring a new funding round that could value the company at around $15 billion. The platform has also resumed operations in the United States following its acquisition of the regulated derivatives exchange QCEX.