Bloomberg reported that Mike Eidlin has been appointed to lead the company’s Japan efforts despite the country’s very strict gambling laws. The move comes as Polymarket’s monthly trading volume declined from $10.57 billion in March to $9 billion in April, while rival Kalshi recorded growth during the same period. 

Polymarket Eyes Japan Expansion

Prediction market platform Polymarket is reportedly preparing for a major expansion into Japan, and the company is exploring the possibility of securing government approval to legally operate prediction markets in the country. According to a report from Bloomberg, Polymarket sees Japan as a big long-term growth opportunity and is aiming to get regulatory authorization by 2030.

The report stated that Mike Eidlin, who previously worked as head of Japan at Jupiter, has been appointed to oversee Polymarket’s efforts in the region. 

Currently, Japan is one of the jurisdictions restricted from accessing Polymarket’s services. The platform currently blocks users from the country due to regulatory requirements and compliance concerns. 

Japan maintains strict gambling laws under its Penal Code, with habitual gambling potentially punishable by up to three years in prison. Operating gambling businesses can also lead to prison sentences ranging from three months to five years.

Despite the strict legal framework, certain exceptions exist in Japan’s gambling landscape. Public lotteries and government-authorized horse racing are legally permitted, while the country’s large pachinko industry has operated in a legal gray area through arcade-style gaming systems and token exchanges.

Polymarket’s reported expansion plans come during a time of slowing growth for the platform. Newer data indicates that Polymarket’s monthly trading volume declined from $10.57 billion in March to $9 billion in April. This was the platform’s first monthly volume decrease since August of last year.

At the same time, rival prediction market platform Kalshi is gaining momentum. Kalshi’s monthly volume reportedly increased from $13 billion in March to $14.81 billion in April.

Monthly prediction market volumes (Source: The Block)

Polymarket also recently expanded back into the United States after its acquisition of federally regulated derivatives exchange QCEX. Through the acquisition, the company launched Polymarket US, which currently operates on a limited basis while discussions with the Commodity Futures Trading Commission continue regarding a return of its primary exchange operations to the US market.