Polymarket fined in the Netherlands, weekly penalties threatened

• Polymarket has faced a penalty in the Netherlands, with the regulator deeming the company’s product "illegal gambling."
• An initial fine was set at €420,000 and is applied weekly up to €840,000
• The regulator claims that the prediction market platform has failed to engage with the regulator

The Netherlands Gambling Authority (KSA) has issued a €420,000 weekly penalty to Adventure One QSS Inc., trading under Polymarket, a globally-recognized prediction market platform.

The KSA has become the latest national regulator to go after the prediction market platform in Europe, following a similar move in France, which deemed the platform to be illegal.

Penalty issued to Polymarket in the Netherlands after failure to respond

The KSA has specifically called out Polymarket for offering "illegal gambling." The initial penatly may increase to a maximum of €840,000 in case of non-compliance, the regulator outlined in an official statement published on its website.

In a translated statement, the regulator outlined the specific violations Polymarket specifically committed, and added that there has been no response from the platform upon contact from the watchdog.

"Polymarket has been frequently in the news in recent months, particularly regarding betting on the Dutch elections. Although Polymarket itself states that prediction markets do not fall under the category of gambling, the KSA has taken a different stance. After contacting the company about its illegal activities on the Dutch market, there has been no visible change, and the offering remains available."

KSA says Polymarket’s offer is illegal gambling

KSA Director of Licensing and Supervision Ella Seijsener has similarly weighed in on the regulator’s decision. She said that prediction markets are increasingly popular across the globe, and that the Netherlands is no exception.

However, she qualified their activity as betting, and that licenses are required. Se highlighted the social risks, and reached a verdict that the business model - when not operating with a license - constituted illegal gambling.

"Anyone without a KSA license has no business in our market. This also applies to these new gambling platforms," she concluded.

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