Dutch Regulator Orders Polymarket to Cease Operations, Faces €840K Penalty

The Kansspelautoriteit (Ksa) has imposed a penalty order on Adventure One QSS Inc., the company operating the prediction market platform Polymarket, for offering illegal gambling services to Dutch consumers without the required license. The regulator has ordered Polymarket to immediately cease all activities targeting the Netherlands or face weekly fines of €420,000, up to a maximum of €840,000.

Prediction Markets Classified as GamblingPolymarket has gained significant media attention in recent months, particularly around betting markets on Dutch elections. While the platform maintains that prediction markets do not constitute gambling, the Ksa has taken a contrary position. Despite prior contact with the company regarding its illegal activities in the Dutch market, no visible changes were made and the platform remains accessible to Dutch users.

The regulator has indicated that a revenue-based fine may be imposed at a later stage in addition to the current penalty order.

Regulator Takes Firm Stance on New Gambling FormatsElla Seijsener, Director of Licensing and Supervision at the Ksa, stated: "Prediction markets are on the rise, including in the Netherlands. These companies offer betting products that are not permitted in our market under any circumstances—not even by licensed operators."

Seijsener emphasized concerns beyond regulatory compliance: "Besides the societal dangers of such predictions, including potential election manipulation, we have determined this constitutes illegal gambling. Anyone without a Ksa license has no place in our market. This applies equally to these new gambling platforms."

This enforcement action signals the Dutch regulator's intent to apply existing gambling frameworks to emerging prediction market platforms, regardless of how these platforms classify their own services.