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The Netherlands has restricted access for its residents to the blockchain prediction platform Polymarket. The Dutch Gambling Authority (Kansspelautoriteit, KSA) determined that the service operates as an unlicensed gambling platform.
The KSA found that the operator registered in the country, Polymarket Adventure One QSS, allowed local users to sign up on the platform, fund their accounts through local banks, and place bets on political events, including the outcomes of elections in the Netherlands, but neither the platform nor the operator held a local gambling license.
Furthermore, even if a license were obtained, it would not have protected the blockchain platform: betting on political events is prohibited in the country regardless of licensing. The arguments presented by Polymarket, claiming that its product is a financial prediction market rather than gambling, were dismissed by the regulator.
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“Such companies offer bets that are not permitted in our market under any circumstances — even for licensed operators,” stated Ella Seijsener, the KSA’s director of licensing and supervision.
The regulator has also issued a ruling regarding a fine. Should Polymarket fail to comply with the requirements to cease operations, the company could face penalties of up to 420,000 euros per week. Dutch users have placed approximately 27 million euros in bets through Polymarket.
Polymarket is a platform where users can wager on various events, from election outcomes to sports results. Participants purchase tokens representing potential outcomes: the more tokens sold, the greater the votes for a particular outcome. The blockchain platform was established in 2020.
Polymarket is officially banned in 33 countries, including Russia, Belarus, Singapore, Italy, Thailand, Germany, the United Kingdom, France, Australia, and Belgium. In January, the platform was blocked in Ukraine and Portugal. Additionally, the U.S. Commodity Futures Trading Commission (CFTC) previously fined Polymarket $1.4 million for offering unregistered derivatives.
