The Dutch gambling regulator has expanded its battle against illegal gambling, ordering Polymarket to cease its presence in the country.
Kansspelautoriteit (KSA) warned Adventure One QSS, the operator of the Polymarket brand in the Netherlands, that it would be sanctioned with a weekly fine of €420,000 should it continue to operate in the country, with a maximum penalty of €840,000.
A zero-tolerance approach to illegal gambling sites is one of the key goals set out by the government in its recently published ‘Getting started, Building a better Netherlands’ coalition agreement, with KSA now expanding this action to include prediction markets.
KSA highlighted how Polymarket has been in the news recently, particularly surrounding wagering on the Dutch elections. Polymarket staunchly denies that it falls in the gambling category.
Despite being contacted about its illegal activity in the Netherlands, no changes have occurred to Polymarket’s offering in the country and as such, an order subject to penalty has been issued, which could result in a turnover-related fine being imposed at a later date if necessary.
Ella Seijsener, Director of Licensing and Supervision at the KSA, commented: “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 license 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 KSA license has no business in our market. This also applies to these new gambling platforms.”
Dutch illegal market crackdown
As it cracks down on illegal gambling sites, the Dutch market is in the midst of a tightening of its regulatory framework, with the government proposing a ban on online gambling advertising, strengthening online operators’ duty of care and exploring limiting the number of online operator licences.
Dutch gambling’s trade body Vergunde Nederlandse Online Kansspelaanbieders (VNLOK) has stated that it shares the government’s desire to improve protections for players and combat the black market, but is encouraging a rethink on how to approach the matter.
“Dutch gambling policy is deliberately designed around an open, regulated market with strict requirements for duty of care, advertising and oversight,” said Björn Fuchs, Chair of VNLOK.
“This system only works if the legal, safe offering remains visible to the player. A total ban on advertising undermines precisely that principle.”
