Polymarket banned: KSA orders cease-operations in the Netherlands
The Netherlands Gambling Authority (Kansspelautoriteit, KSA) has deemed Polymarket illegal in the Dutch market and ordered it to cease operations. As reported by Decrypt, the regulator directed an immediate halt to the platform’s activities for Netherlands-based users.
The action targets unlicensed prediction markets that the regulator classifies as games of chance offered without authorization. The order underscores the Dutch position that these products fall within gambling law regardless of whether the platform frames them as information or forecasting tools.
Why KSA deems prediction markets illegal gambling
Under Dutch rules, offering bets on real-world outcomes without a KSA license constitutes illegal gambling. The authority views political, economic, and cultural event markets as wagers that operators cannot legally provide, even if other product features resemble exchanges.
Polymarket argues it is a peer-to-peer prediction venue where prices reflect market dynamics rather than operator-controlled chance mechanisms. The KSA has also highlighted societal risks, including potential effects on democratic processes when markets involve elections.
“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,” said Ella Seijsener, Director of Licensing & Supervision at the KSA.
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Penalties, timelines, and what Dutch users should expect
The regulator’s order requires Polymarket to stop serving the Netherlands immediately. This typically means geoblocking access, disabling market participation, and otherwise preventing Dutch-facing activity until compliance is verified.
As reported by iGaming Business, non-compliance can trigger a periodic penalty of about €420,000 per week, capped at roughly €840,000. The KSA has signaled that entities operating without a license have no standing in the market.
Dutch users should expect access restrictions and potential market closures specific to their location. Communications about account status and any permitted actions would ordinarily come through the platform’s official channels.
EU enforcement trends and societal risks explained
Where else are regulators moving against prediction markets?
Portugal and other EU jurisdictions are also moving against prediction markets, as reported by BeInCrypto and The Cryptonomist. The recent Dutch action is framed within a broader pattern of rising regulatory risk for these products across Europe.
Election influence flagged by KSA; addiction and normalization concerns by experts
The KSA has flagged the risk that election-related markets could affect public perception or behavior. Independent researchers warn that turning everyday events into bets may normalize gambling and increase harm.
“Platforms like these risk normalizing gambling by turning almost any real-world event into a betting opportunity,” said Tony van Rooij, gambling researcher at the Trimbos Institute.
At the time of this writing, broader crypto conditions remain volatile; for context, Polygon (MATIC) was around $0.1064, with very high estimated volatility near 11% and an RSI reading close to neutral.
FAQ about Polymarket ban Netherlands
What penalties or fines apply for non-compliance, and what is the timeline?
Immediate halt was ordered. Reported penalties are about €420,000 per week, capped near €840,000, if non-compliance continues.
Why does Dutch law classify prediction markets as illegal gambling, can any operator get licensed for them?
They’re treated as unlicensed bets on real-world outcomes. Current KSA posture indicates such markets aren’t permitted even by license holders.
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