Tokyo-listed gaming company Gumi said it is exploring blockchain-based prediction market services through its subsidiary Gc Labs, joining a wave of regional firms entering the sector.
The announcement comes as Trump Media and Technology Group revealed plans to integrateprediction markets into its Truth Social platform . In addition, many blockchain-based prediction platforms are expanding across Asia, despite facing a number of regulatory challenges in the region.
Markets expected to gain momentum across regions
The prediction market sector has attracted significant institutional backing in recent months. In October, Polymarket received a $2 billion strategic investment from Intercontinental Exchange, the parent company of the New York Stock Exchange.
On Tuesday, Trump Media and Technology Group announced plans to integrate prediction markets into Truth Social through a partnership with CFTC-registered Crypto.com Derivatives North America, signaling widespread adoption of the technology.
This growth is spreading across Asia. Also on Tuesday, prediction protocol Myriad launched on BNB Chain to reach users in the region, introducing automated markets and a localized experience.
The platform targets millions of potential users in the Asian crypto community, the company said in a statement. Meanwhile, US-based Kalshi raised $300 million on October 10 at a $5 billion valuation, while announcing its expansion into more than 140 countries, including China and India, despite potential regulatory hurdles in those markets.
Gumi said on Friday that its proposed platform will allow users to predict events across politics, economics, entertainment and social issues. The company plans to conduct joint verification tests with media companies, data analytics firms and research institutes, although it did not provide a specific launch timeline.
The Shard Legal Landscape in Asia
The expansion of prediction markets in Asia faces very different regulatory frameworks across countries. In the Philippines, legal expert Marie Antonette Quiogue confirmed on October 26 that prediction markets remain illegal , with no immediate roadmap for legalization under the current PAGCOR licensing requirements. China maintains strict bans on gambling, while India faces similar uncertainties despite Kalshi’s announced expansion plans.
The legal environment in Japan is particularly complex. Under legal interpretations, current offshore prediction platforms, where users bet with cryptocurrency for potential rewards, are likely to violate Japan’s criminal gambling laws.
Gumi acknowledged the challenge, saying it aimed to ensure “fairness, transparency and compliance with the law” in its service design.
The company has not revealed how it will design the platform to comply with the aforementioned restrictions. Unlike places where the legal framework for crypto-based prediction platforms is gradually taking shape, current Japanese law generally prohibits betting, with only limited exceptions for government-sanctioned forms of gambling.
Entertainment strategy as a compliance approach
Gumi said it will incorporate game mechanics and entertainment elements. The goal is to “create a mechanism that more users can enjoy by integrating game and entertainment elements, and introduce new uses for cryptocurrencies.”
This approach differs from existing platforms like Polymarket , which primarily act as exchanges to predict future events.
Observers say emphasizing entertainment value over financial speculation may be an attempt to position the platform differently under Japanese law, though the viability of such a strategy remains to be seen. Gumi’s background in mobile gaming may shape its approach, but analysts question whether the gaming element alone can address core issues of legal classification.
The company has not provided details on its Token economics, how it will pay out rewards, or the verification mechanism it will use to demonstrate regulatory compliance in Japan . As prediction market platforms proliferate across Asia with varying regulatory approaches, the success of Gumi’s compliance strategy could influence how businesses in the region navigate similar regulatory constraints.
