Asia Gaming Weekly News Bulletin – ISSUE 66 Week of 25 May 2026
(1) South Korea considers blocking Polymarket as illegal gambling site
South Korea is reviewing Polymarket to decide whether it should be classified as an illegal gambling site. Regulators say the platform’s prediction market model requires closer scrutiny, but its Korean language service and local accessibility could bring it under domestic law and potentially expose it to blocking action.
(2) Polymarket Targets Japan with Formal Lobbying Effort, Signaling Industry Shift
Polymarket is seeking formal approval to enter Japan by 2030, adopting a more cautious strategy than in other markets. In a country with strict gambling laws and tighter online betting controls, the company is working through official channels and appears to be tying its ambitions to Japan’s broader regulated gambling expansion.
(3) Facebook Under Pressure from Malaysia Over Illegal Gambling Ads
Malaysia has warned Meta and Facebook to remove illegal gambling ads and scam content or face legal action. Authorities say the scale of harmful material is growing, with most takedown requests linked to scams and gambling, as the government prepares a broader coordinated crackdown involving regulators, banks and law enforcement.
(4) AI-driven odds manipulation and chatbot promotion: Illicit gambling syndicates cost HKers $250b over 20 years
Illegal gambling syndicates are using artificial intelligence to refine odds, target users and expand ahead of the World Cup, while some chatbots have been accused of inadvertently helping people find black market betting sites. The trend highlights how new technology is making illegal gambling more sophisticated, dangerous and harder to control.
(1) South Korea considers blocking Polymarket as illegal gambling site
(Photo Credit: IGAMING TODAY)
South Korea’s Korea Communications Standards Commission has begun reviewing Polymarket to decide whether the prediction market platform should be treated as an illegal gambling site under domestic law. The move follows a formal complaint and reflects growing regulatory attention on services that fall outside traditional betting models.
The case is not straightforward because Polymarket presents itself as a prediction market rather than a conventional gambling platform. Users place stablecoins on real world outcomes, including elections, interest rate decisions and cryptocurrency prices, with payouts tied to the eventual results. Commission officials say that makes the service more complex to assess than a standard betting website, though it could still be classified as a new type of gambling related platform.
Regulators appear to have jurisdiction because Polymarket remains accessible in South Korea and offers a Korean language interface, even though its servers are located overseas. That has given authorities grounds to examine whether the platform is targeting Korean users and therefore falls under domestic oversight.
The review comes as prediction market activity expands rapidly worldwide and other countries intensify scrutiny. Several jurisdictions, including France, Germany, India and Brazil, have already blocked access to Polymarket. South Korean legal experts say the commission could do the same if it concludes that the platform is effectively operating as an unlicensed gambling service.
News Source: https://www.igamingtoday.com/south-korea-reviews-polymarkets-gambling-status/
(2) Polymarket Targets Japan with Formal Lobbying Effort, Signaling Industry Shift
(Photo Credit: Finance Magnates)
Polymarket is taking an unusually cautious approach in Japan, seeking formal government approval for its prediction platform in a country with some of the toughest gambling laws among major economies. According to Bloomberg, the company has appointed a representative in Japan and is aiming for official authorization by 2030, rather than trying to launch first and deal with regulators later.
That marks a notable shift from its approach in markets such as India, where prediction platforms have continued operating despite regulatory pressure. In Japan, Polymarket appears to believe that working through official channels will be more effective than fighting legal battles after the fact.
The challenge is considerable. Japan’s Penal Code imposes severe penalties on gambling operators, and authorities have recently tightened oversight of online betting. New legislation passed in 2025 expanded powers to block foreign gambling sites and criminalised betting on offshore platforms. The 2026 budget also increased funding for gambling oversight and digital surveillance.
Polymarket’s 2030 target may be linked to the expected opening of MGM Osaka, Japan’s first integrated casino resort, in the same year. By aligning itself with Japan’s broader regulated gambling expansion, the company seems to be positioning itself as a future licensed participant rather than an outsider testing the limits of the law.
(3) Facebook Under Pressure from Malaysia Over Illegal Gambling Ads
(Photo Credit: IGAMINGTODAY)
Malaysia has issued a final warning to Meta and Facebook, demanding the removal of illegal gambling advertisements and scam related content as authorities step up pressure on major digital platforms. Communications Minister Fahmi Fadzil said the government could pursue legal action if the company fails to cooperate, with any case likely to be handled by the Malaysian Communications and Multimedia Commission.
The warning reflects growing concern over the scale of harmful content circulating online. Between 1 January 2026 and 23 May 2026 this year, Malaysian authorities submitted 271,472 takedown requests to Facebook, with more than 91 per cent linked to scams and illegal gambling. Officials also said 81 per cent of all illegal gambling related content detected online was found on Facebook, placing the platform at the centre of the government’s latest enforcement push.
Fadzil said Malaysians lost more than US$640 million to scams in 2025, including fraudulent sales, investment schemes and gambling related fraud. In response, the government is planning a new committee to coordinate action against online scams and illegal gambling advertisements. The proposed body would bring together regulators, banks, law enforcement agencies and telecommunications companies.
The move signals a tougher Malaysian stance on digital platforms as officials try to curb online crime and force faster removal of illegal content.
News Source: https://www.igamingtoday.com/facebook-under-pressure-from-malaysia-over-illegal-gambling-ads/
(Photo Credit: The Standard)
Illegal offshore gambling syndicates are increasingly using artificial intelligence to sharpen their operations, manipulate betting odds and attract new customers ahead of the World Cup, raising fresh concerns about consumer harm and regulatory loopholes. Industry sources say unregulated AI systems are now being used to analyse huge volumes of match data, adjust odds in real time and manage risk in ways that heavily favour bookmakers.
Critics warn that these tools make illegal betting platforms more sophisticated and more difficult for ordinary punters to detect. Some insiders say the systems are designed to limit big wins, flag suspicious betting patterns and steer markets to maximise profits for operators. At the same time, major AI chatbots have come under scrutiny after tests suggested some could inadvertently direct users towards black market gambling sites or related search terms.
The broader social cost is already severe. Reports estimate Hong Kong residents have lost at least HK$250 billion to illegal gambling over the past two decades, while the government may have missed out on around HK$120 billion in betting duty. Personal accounts also point to the destructive toll of addiction, debt and intimidation linked to illegal bookmakers.
With online gambling networks becoming more technologically advanced, the issue is no longer just about illicit betting. It is also about how emerging digital tools can be exploited to expand organised gambling and deepen its social fallout.
