Netherlands Moves to Block Polymarket Over Unlicensed Betting

The Netherlands has issued a formal penalty order against Adventure One QSS Inc., operator of Polymarket, after the prediction market platform continued offering services to Dutch consumers without a proper license. The Kansspelautoriteit (KSA), the national gambling authority, warned that failure to comply could result in fines of €420,000 per week, capped at €840,000.

Polymarket has frequently drawn attention in recent months, particularly for hosting markets linked to political events. While the platform argues that its offerings constitute financial “event contracts” rather than traditional betting, the KSA disagrees, maintaining that the services qualify as illegal gambling under Dutch law.

“Prediction markets are on the rise, also in the Netherlands,” said Ella Seijsener, director of licensing and supervision at the KSA. “These types of companies offer bets that, in our market, are in any case not permitted, not even by licence holders. In addition to the societal dangers of this type of prediction (for example, the possible influence on elections), we establish that this concerns illegal gambling. Whoever does not have a licence from the KSA has no place on our market. That also applies to this type of new gambling platform.”

Regulatory Rationale and Consumer Protections

The regulator emphasized that non-sporting event betting is strictly prohibited. “In the Netherlands, betting on non-sporting events, such as political outcomes, is explicitly prohibited,” the KSA explained. “This prohibition applies regardless of whether an operator holds a licence. Such bets are not eligible for licensing under the Dutch regulatory framework.”

Polymarket’s continued accessibility to Dutch users, even after prior warnings, prompted the authority to escalate to a penalty order. According to the KSA, access from within the Netherlands has now been blocked, and the regulator continues to monitor compliance. Additional turnover-related fines may be considered in the future if non-compliance persists.

The KSA cited several reasons for the strict stance. Unlicensed platforms provide no consumer protections, lack measures to prevent gambling addiction, and cannot guarantee fair play. The authority also flagged integrity risks, noting that markets focused on elections or societal events could be vulnerable to manipulation or conflicts of interest. “There is no regulatory oversight of these platforms, meaning there are no safeguards for consumers, no controls to prevent gambling addiction, and no mechanisms to ensure fair play,” the regulator said.

Enforcement Amid a Restrictive Market

The Netherlands’ approach reflects a deliberately restrictive gambling system, which was launched in 2021. Only licensed operators can offer a limited range of approved games. “Platforms such as Polymarket operate on so-called prediction markets, allowing users to speculate on the outcome of real-world events,” the KSA added. “This constitutes offering prohibited gambling. In addition, where sports betting is offered, this requires a Dutch licence. Polymarket does not hold such a licence.”

Industry observers note that roughly half of online gambling activity in the Netherlands now occurs through unlicensed platforms, partly due to tax increases and advertising restrictions that push users offshore. The KSA’s move against Polymarket highlights the ongoing challenge regulators face in enforcing national rules within a borderless online environment, particularly as prediction markets continue to expand across political, financial, and societal events.

Source:

“Order subject to penalty for illegal gambling offer Polymarket”, kansspelautoriteit.nl, February 17, 2026