Polymarket has taken a significant step by appointing a representative in Japan as part of its initiative to advocate for the legalization of prediction markets in the country.

The company views Japan as a vast, untapped market, presenting a substantial business opportunity. Leading the charge in Japan is Mike Eidlin, who has previously served as head of Japan for the crypto firm Jupiter, as noted in his LinkedIn profile.

Although Eidlin did not provide any comments regarding his collaboration with Polymarket, his involvement highlights the company’s commitment to expanding its presence in the region. While Polymarket chose not to comment on its activities in Japan, a representative from the Justice Ministry similarly refrained from discussing any potential communications with the platform.

Polymarket allows users to wager on the outcomes of real-world events, including elections, using cryptocurrencies. However, it has avoided promoting its services in Japan due to the nation’s stringent gambling laws.

Headquartered in New York, Polymarket currently prohibits users based in Japan from placing bets on its website and app, citing regulatory constraints. This push into Japan comes at a time when Polymarket is feeling the pressure to grow its user base in light of increasing legal scrutiny in the United States and competition from platforms like Kalshi.

In April, the company’s monthly notional trading volume reached $10.3 billion on its offshore exchange and U.S. app, reflecting a 9% decline compared to the previous month.

Gambling holds a complicated legal status in Japan, with the nation’s Penal Code stating that habitual gambling can lead to prison sentences of up to three years, while individuals operating gambling businesses face potential incarceration of up to five years. There are regulated exceptions, such as government-sanctioned horse racing and public lotteries.