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Dutch authorities have taken enforcement action against Polymarket, ordering the crypto based predictions platform to halt activity in the Netherlands or face escalating financial penalties.
Good to Know
Kansspelautoriteit, the national gambling regulator of the Netherlands, determined that Adventure One QSS, the entity behind Polymarket, had provided access to Dutch users without holding a required licence. Under Dutch regulation, any product considered a game of chance must receive prior approval before being made available to residents.
Investigators said access to the platform was possible through a local IP connection, something unlicensed operators are required to block. Once inside the platform, users could register accounts, deposit funds, participate in markets, and withdraw winnings in a way regulators said mirrored traditional betting environments.
Testing carried out during the investigation showed payments could be processed through financial channels linked to the Netherlands. Authorities reported that deposits were successfully made using a Mastercard routed via a Dutch bank, with payment instructions displayed in Dutch language.
Regulatory review also pointed to several indicators suggesting focus on local consumers. Customer support powered by artificial intelligence functioned in Dutch, transactions were handled in euros, and the Netherlands did not appear on any restricted territory list within platform terms. Certain markets even referenced Dutch political developments, including events tied to cabinet activity.
Polymarket argued that its model should not be treated as gambling. Company representatives maintained that the service operates as a peer to peer trading environment rather than a bookmaker driven system.
Polymarket responded in a statement noting:
“Polymarket is a prediction market where users trade positions with each other; pricing and settlement come from market dynamics and protocol contract logic, not from a chance mechanism designed by the operator. The result is not purely chance, but also the product of informed decision-making and active trading choices.”
The company also argued that availability to Dutch users reflected passive access rather than deliberate targeting, calling the evidence presented by regulators insufficient to demonstrate market specific outreach.
Kansspelautoriteit rejected that reasoning and reaffirmed its classification of the activity as unlicensed gambling. Officials said the structure of the markets, combined with accessibility and payment integration, met legal thresholds for games of chance regardless of technological framing.
Ella Seijsener, director of licensing and supervision at Kansspelautoriteit, said:
“Prediction markets are on the rise, including in the Netherlands. These types of companies offer bets that are not permitted in our market under any circumstances, not even by licence holders.
“Besides the social risks of these kinds of predictions — for example, the potential influence on elections — we conclude that this constitutes illegal gambling. Anyone without a licence has no business in our market. This also applies to these new gambling platforms.”
Under the order issued on 20 January, Polymarket must cease activity within four weeks. Failure to comply could trigger recurring financial penalties until the maximum sanction is reached.
Authorities determined that prediction contracts available on the platform meet the legal definition of gambling and require a national licence.
A weekly fine of €420,000 may be imposed, up to a ceiling of €840,000, if services continue.
Investigators accessed the platform from a Dutch IP address, deposited funds through a Dutch linked bank, and observed localized language, currency, and market offerings.
The company said it operates a peer to peer prediction exchange driven by trading decisions rather than chance.
Officials pointed to consumer protection and potential societal risks tied to prediction markets, including influence on political processes.