Netherlands Orders Polymarket to Halt Operations, Threatens Weekly Fines

• Dutch regulator orders Polymarket to halt operations or face €420K in weekly fines over licensing breach.
• Netherlands classifies prediction markets as illegal gambling under its 2021 Remote Gambling Act.
• Global pressure builds as US and European regulators tighten oversight on prediction market platforms.

Dutch regulators have moved to block prediction market platform Polymarket from operating in the Netherlands, ordering the company to stop offering services to local users or face escalating financial penalties.

The Netherlands Gambling Authority (Ksa) said Adventure One QSS Inc., which operates Polymarket, provided gambling services without the required national license. The regulator warned that noncompliance will trigger fines of €420,000 ($462,000) per week, capped at €840,000 ($924,000).

In a statement issued Tuesday, the Ksa directed the platform to immediately cease access for Dutch residents. Ella Seijsener, the agency’s director of licensing and supervision, said prediction markets are expanding in the country but fall outside the scope of permitted gambling activities.

She stated that such offerings are not allowed in the Dutch market under any circumstances, including by licensed operators. The regulator cited concerns about social risks, including the potential influence on elections, in classifying the service as illegal gambling.

Related: Polymarket Lawsuit Challenges Massachusetts Authority Over Prediction Markets

Dutch Law Classifies Prediction Markets as Gambling

The Netherlands launched its regulated online gambling regime in 2021 under the Remote Gambling Act. The framework requires all operators to secure a license from the Ksa and meet strict compliance standards. These include consumer safeguards against addiction and financial harm, controls to prevent money laundering, integrity requirements, and systems to block underage participation.

Dutch authorities have consistently categorized prediction markets as gambling services rather than financial instruments. That interpretation subjects platforms to the same licensing and oversight obligations as traditional online betting providers. The Ksa has taken enforcement action in recent years against several unlicensed cryptocurrency gambling platforms, reflecting an active compliance strategy.

International Scrutiny Intensifies

The Dutch decision adds to mounting regulatory pressure on prediction markets globally. In the United States, the Commodity Futures Trading Commission reached a 2022 settlement with Polymarket that required the company to pay a $1.4 million penalty and limit certain event-based contracts.

European regulators have adopted stricter positions. Germany prohibits prediction markets outright, while the United Kingdom requires operators to hold a Gambling Commission license and comply with social responsibility standards.

Related: Portugal Moves to Block Polymarket Over Illegal Political Bets