Netherlands Bans Polymarket Over ‘Illegal Gambling Services’
The Netherlands Gambling Authority (Ksa) has ordered Polymarket, operated by Adventure One QSS Inc., to stop offering its prediction market platform to Dutch users, citing illegal gambling due to lack of a local license. If Polymarket fails to comply, it faces fines of €420,000 per week, up to €840,000. The Ksa emphasized that prediction markets are not permitted in the Netherlands and cited concerns about their social impact, including on elections. This move follows rapid global growth in prediction markets, such as Polymarket and Kalshi, with monthly trading volumes exceeding $13.5 billion, often around key political events. Regulators in several countries argue these platforms amount to betting, despite operators’ claims that they offer financial instruments rather than wagers. The sector faces increasing legal scrutiny worldwide, including lawsuits and regulatory actions in the U.S. and Europe. Dutch regulators are known for strict enforcement, emphasizing consumer protection and requiring firms to obtain appropriate licenses. Regardless of industry claims about the informational value of prediction markets, Dutch law treats staking money on real-world events as gambling, triggering licensing obligations.
