The Dutch gambling authority has taken enforcement action against cryptocurrency-based prediction platform Polymarket, ordering it to stop operating in the Netherlands or face financial penalties of up to €840,000.
The Kansspelautoriteit (KSA) determined that Polymarket, operated by Adventure One QSS, was offering gambling services to Dutch consumers without holding the required national licence. According to the regulator, the platform’s prediction-style markets meet the legal definition of games of chance under Dutch law and therefore fall within the scope of regulated gambling activity.
Regulator Finds Active Access for Dutch Players
During its investigation, the KSA concluded that users located in the Netherlands were able to access Polymarket using local IP addresses. Under Dutch regulations, gambling operators that are not licensed in the country must implement effective geo-blocking measures to prevent access.
The regulator found that once on the platform, Dutch users could register accounts, log in, deposit funds, place wagers on prediction markets, and withdraw any winnings. Players were also presented with potential payout information before placing trades.
As part of its technical review, the KSA conducted test transactions and reported being able to deposit funds using a Mastercard linked to a Dutch bank. Payment instructions were displayed in Dutch, and transactions were processed without restrictions.
Evidence of Targeting Dutch Consumers
Beyond simple accessibility, the regulator argued that several elements of the platform indicated that Dutch players were being actively targeted.
The KSA noted that:
- Customer support powered by AI was available in Dutch
- Payments were displayed and processed in euros
- The Netherlands was not included in the platform’s list of restricted jurisdictions
- Certain markets related specifically to Dutch political developments were offered
According to the authority, these factors went beyond passive availability and demonstrated engagement with the Dutch market in violation of national gambling law.
Polymarket’s Defence Rejected
Polymarket contested the findings, arguing that it does not operate as a traditional gambling operator. Instead, the company maintained that it runs a peer-to-peer prediction exchange where pricing and settlement are driven by market participants rather than by chance mechanisms controlled by the operator.
The platform asserted that outcomes are influenced by informed decision-making and trading behaviour, rather than pure randomness. It also argued that technical accessibility alone should not be interpreted as deliberate targeting of Dutch consumers.
However, the KSA dismissed this reasoning, reiterating that under Dutch law the platform’s event-based contracts qualify as gambling products. Without a Dutch licence, the regulator concluded that Polymarket was operating illegally.
Penalty Order and Financial Risk
Under the enforcement order issued on 20 January, Polymarket has four weeks to cease operations within the Netherlands. Failure to comply would result in a weekly penalty of €420,000, capped at a total of €840,000.
Ella Seijsener, director of licensing and supervision at the KSA, stated that prediction-style betting products are gaining popularity but remain prohibited unless properly licensed. She also warned of broader social concerns, including potential risks to democratic processes when political event markets are offered.
The regulator made clear that unlicensed operators — regardless of business model — are not permitted to operate within the Dutch market.
A Pattern of Regulatory Challenges
This is not the first time Polymarket has faced regulatory scrutiny. Founded in 2020, the platform initially gained traction through markets related to US elections and pandemic developments.
In 2022, the US Commodity Futures Trading Commission (CFTC) imposed a $1.4 million civil penalty after determining that the company had offered certain event-based contracts without proper registration. The settlement required Polymarket to wind down non-compliant offerings and strengthen compliance procedures.
Despite implementing geo-blocking and other controls, the platform has continued to draw attention from regulators, particularly during periods of heightened political activity such as the 2024 US election cycle.
More recently, state-level challenges in jurisdictions including Nevada and Massachusetts have focused on whether sports- and event-based contracts constitute unlicensed betting.
Growing Global Scrutiny of Prediction Markets
The Dutch action reflects increasing regulatory pressure worldwide on platforms that blur the line between financial trading and gambling. Authorities are scrutinising whether event-based contracts fall within gambling legislation, especially when they resemble sportsbook-style offerings.
For Polymarket, the Dutch ruling adds another legal front to an already complex regulatory landscape, reinforcing the challenges prediction markets face as governments seek to clarify their legal status.