TAIPEI (Taiwan News) — Taiwan police have arrested 17 people for betting on the outcome of the presidential election online, as the platform they used continues to take bets.
Over US$5,500 (NT$172,495) in the cryptocurrency USD Coin (the value of which is pegged to the U.S. Dollar) was confiscated from the 17 arrested, police said on Saturday (Dec. 16), per CNA. Those found guilty of profiting from bets made on an election can be sentenced to five years in prison and a fine of up to NT$500,000, according to Taiwan’s election law.
The bets were made on the decentralized prediction marketplace Polymarket, which allows users to bet on the outcomes of almost any upcoming event, including in politics, sports, entertainment, finance, and other categories. The website showed that over US$331,000 has been wagered on the election so far.
Users of the site can buy either “yes” or “no” bets on the question: “Taiwan Presidential Election: Who will win?” Marketed as “shares,” users place bets that cost a fraction of a U.S. dollar, at a price determined by the market.
Once the betting period closes, shares of correct responses are valued at US$1, and incorrect answers are worthless. At the time of publishing, betting that Democratic Progressive Party (DPP) candidate Lai Ching-te (賴清德) will win the election cost US$0.78.
A bet for Taiwan People’s Party (TPP) candidate Ko Wen-je (柯文哲) to win cost US$0.19, while a bet for Kuomintang (KMT) candidate Hou Yu-ih (侯友宜) to win cost US$0.16, which represents the highest payout of 525%. The higher payout for Ko compared to Hou goes against recent polling that showed Hou trails Lai in the race, with Ko in third place.
Users can also sell their bets, or shares, to others before the betting period closes.