KSA orders Polymarket out of the Netherlands

The Netherlands Gambling Authority (KSA) has taken a firm stance against Polymarket, threatening to fine it up to €840,000 ($992,000) if it does not stop its operations in the country. 

According to the KSA, Polymarket has been offering ‘games of chance’ on the Dutch market without the appropriate licence. 

No immediate fine has been issued, but the company has been told it will be fined €420,000 per week if it continues in the Netherlands.  

The overall fine, however, has been capped at a possible €840,000 – in other words, two week’s worth of sanctions. 

Polymarket, as with other high-profile prediction market platforms, claims that its offering does not constitute gambling, though many gambling regulators in the US and worldwide disagree with this categorisation. 

The KSA certainly takes this view and has seemingly contacted Polymarket about its activities in the Netherlands, to no response. 

While the sanctions are apparently limited to a two-week period, the KSA has reserved the right to issue a ‘turnover-related fine’ at a later date. 

Ella Seijsener, Director of Licensing and Supervision at the KSA, has said: “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.” 

It is not abundantly clear why the order to leave and associated sanctions are capped at two weeks, but judging by the strong messaging from the KSA and its overall tough regulatory approach, it is likely that if Polymarket remains uncooperative after the two weeks, the KSA will seek to take even stronger action. 

Seijsener goes on to say: “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 licence has no business in our market. This also applies to these new gambling platforms."