Dutch regulator orders Polymarket to halt Netherlands services, citing illegal gambling violations, escalating fines, and warning prediction market platforms across Europe
The Dutch gambling regulator has moved decisively against Polymarket’s operations in the Netherlands. Authorities ruled that the prediction contracts of the platform fall into the category of illegal gambling products. As a result, the regulator ordered an immediate standstill of local services. The decision marks growing scrutiny of online prediction markets throughout Europe.
Netherlands Gambling Authority Issues Enforcement Action
The Netherlands Gambling Authority (Ksa) confirmed penalties against Adventure One QSS Inc. The company offers games of chance as a Polymarket brand without a Dutch license. For this reason, the regulator deemed the offering illegal gambling. Officials stressed that all operators must comply with national licensing requirements.
Under the enforcement order, Adventure One will be required to halt activities immediately. Otherwise, fines will reach the level of 420,000 euros per week. Moreover, penalties can be accumulated until a maximum of 840,000 euros. In addition, the Ksa threatened that turnover-based fines might follow in the future. This framework is designed to ensure compliance within the jurisdiction is achieved at high speed.
Polymarket got a lot of attention recently in the past few months. Of particular note is the great interest that was generated in the public during discussions around Dutch elections. However, Polymarket states that prediction markets are not gambling services. Despite such a position, the Dutch authority arrived at an opposite legal conclusion. Regulators said that the structure of contracts is similar to banned mechanisms for betting.
Regulator Cites Legal and Social Risk Concerns
According to the Ksa, no visible changes in operation occurred due to previous engagement. As a result, the authority became formalized as an order with punishments. Officials stressed that continued availability is in violation of the Dutch gambling law. Furthermore, the regulator highlighted potential social risks, which are related to predictions related to elections.
Ella Seijsener, director of licensing and supervision, published the rationale. She said that prediction markets are growing rapidly, in the Netherlands too. However, she added that such bets can be impermissible under any circumstances. Even licensed operators cannot legally offer similar products.
Seijsener also commented on more general societal issues. For example, she highlighted some potential influences on democratic processes. Therefore, the Ksa regards these offerings to be incompatible with consumer protection standards. She said unlicensed operators had no place in the Dutch market. This position holds for emerging gambling-style platforms as well as others.
Meanwhile, the enforcement is part of a tougher regulatory approach towards digital platforms. Across Europe, authorities are still re-examining online wagering and derivatives-like products. As a result, there is increasing pressure on companies to conform to national frameworks. Non-compliance increasingly leads to financial sanctions and restrictions in operations.
For participants in the markets, the ruling means increased legal uncertainty. Prediction market providers now have to assess licensing strategies carefully. Further, users should anticipate tighter access controls within regulated regions. The action of the Dutch regulator shows that classification disputes are not necessarily going to prevent enforcement. Ultimately, adherence to local law is always the determining factor.