Polymarket Sets Sights on Japan With New Push for Local Approval - Crypto Economy

Japan has some of the strictest gambling laws in the world; betting is only permitted in state-authorized activities such as horse racing.

Polymarket is advancing its international expansion strategy and targeting Japan as its next key market. According to a report by Bloomberg, the decentralized prediction markets platform appointed Mike Eidlin, Jupiter's director for Japan, to manage its presence in the country. The company seeks to obtain government approval before 2030 and plans to actively lobby Japanese authorities to have prediction markets recognized as a regulated category.

The strategy responds to mounting regulatory pressure across multiple jurisdictions. In April, the platform's monthly trading volume fell nearly 15%, while rival Kalshi recorded growth of approximately 13% during the same period, according to Token Terminal data. In addition, Polymarket operates under restrictions in around 34 countries, with the United States among its blocked jurisdictions, where its activity has been significantly curtailed.

The Japanese market represents an enormous opportunity, though the hurdles will be difficult to overcome. The country maintains one of the most restrictive gambling legislations in the world: betting is prohibited under the penal code except in activities expressly authorized by the State, such as horse racing, public lotteries and, more recently, casinos under a very limited regulatory framework. Gambling-related offenses involving online activity can result in fines of up to $3,400 and prison sentences of up to three years for repeat offenders.

Despite these restrictions, the platform already has an organic presence in the country. Its X account dedicated to Japan has surpassed 53,000 followers, a regional community with no comparable equivalent in other geographies where it operates. A Polymarket spokesperson noted, according to Bloomberg, that the company has observed "significant organic interest" from Japanese users and across Asia, and that it continuously evaluates global expansion opportunities "in a manner compatible with local regulations".

India also restricted access to the platform, and authorities are reportedly preparing similar blocking orders against Kalshi. The push into Japan underscores Polymarket's urgency to diversify its market base amid an increasingly hostile regulatory landscape.