Dutch Regulator Orders Polymarket to Exit Netherlands or Face €840,000 Fine

The Dutch gambling authority, Kansspelautoriteit (KSA), has issued a penalty order against Polymarket, instructing the cryptocurrency-based prediction platform to halt its operations in the Netherlands or face fines that could reach as much as €840,000 ($994,147).

The regulator determined that the platform had violated national regulations by making its services available to Dutch users without the required gambling licence.

According to the KSA, the company responsible for operating the platform, Adventure One QSS, had been providing access to Polymarket in the Netherlands unlawfully. Authorities concluded that the platform’s betting-style prediction markets qualify as gambling and games of chance under Dutch legislation, meaning a licence is mandatory for such services.

During its investigation, the regulator discovered that individuals using Dutch IP addresses could freely access the Polymarket website. Operators lacking a Dutch licence are obligated to restrict access for users located in the country, but investigators found this was not being enforced. Once on the platform, users could register accounts, log in, deposit funds, participate in prediction markets, view potential returns, and withdraw any winnings.

The regulator also found that Polymarket accepted payments routed through Dutch financial institutions. In tests conducted by the KSA, investigators were able to deposit funds using a Mastercard linked to a Dutch bank, and the payment instructions appeared in Dutch. The authority further determined that several aspects of the platform suggested it was actively appealing to Dutch consumers. These included AI customer support available in Dutch, payment options using euros, and the absence of the Netherlands from the platform’s list of excluded countries in its terms of service. In addition, the KSA noted that Polymarket hosted prediction markets specifically related to Dutch political developments, including events involving the national cabinet.

Polymarket rejected the regulator’s interpretation, arguing that its platform did not constitute conventional gambling. Instead, the company maintained it operated a lawful prediction exchange driven by user trading rather than chance.

“Polymarket is a prediction market where users trade positions with each other; pricing and settlement come from market dynamics and protocol contract logic, not from a chance mechanism designed by the operator,” Polymarket said. “The result is not purely chance, but (also) the product of informed decision-making and active trading choices.”

The company also contended that the features identified by the regulator merely demonstrated that the platform could be accessed from the Netherlands, rather than proving deliberate targeting of Dutch users. It argued these factors were “insufficient” to conclude that it had intentionally focused on the Dutch market.

However, the KSA dismissed this defence, reaffirming its view that the platform was offering gambling-like activities without proper authorisation. As a result, the regulator ordered Polymarket to cease its Dutch operations within four weeks of its ruling, issued on 20 January. Failure to comply would trigger weekly penalties of €420,000, up to a maximum of €840,000.

“Prediction markets are on the rise, including in the Netherlands,” said Ella Seijsener, director of licensing and supervision at the KSA. “These types of companies offer bets that are not permitted in our market under any circumstances, not even by licence holders.

“Besides the social risks of these kinds of predictions — for example, the potential influence on elections — we conclude that this constitutes illegal gambling. Anyone without a licence has no business in our market. This also applies to these new gambling platforms.”

The Dutch enforcement action adds to a growing list of regulatory challenges faced by Polymarket since its launch in 2020. Originally built on Ethereum before moving to Polygon, the platform initially gained traction through prediction markets focused on US elections and Covid-19 outcomes.

In January 2022, Polymarket encountered its first major regulatory penalty when the Commodity Futures Trading Commission in the United States ruled that it had offered event-based binary options without proper registration. The case resulted in a $1.4 million civil fine and required the company to shut down certain non-compliant markets and implement stronger compliance procedures.

Following that action, Polymarket pledged to improve its compliance efforts by expanding country restrictions and introducing geo-blocking controls. However, increased traffic during the 2024 US election cycle brought renewed attention from regulators at both state and national levels. Authorities in states including Nevada and Massachusetts questioned whether its event and sports prediction contracts amounted to illegal wagering.

Polymarket’s legal troubles have also extended to Europe. In late 2024, France’s national regulator, Autorité Nationale des Jeux, ordered the geo-blocking of Polymarket.com after determining it had been offering online gambling illegally in France.

The latest decision by Dutch authorities underscores increasing scrutiny of prediction market platforms worldwide, as regulators continue to assess whether such services fall within existing gambling laws.

By fLEXI tEAM