Netherlands imposes heavy penalty on Polymarket! Illegally providing prediction market services, potentially facing a fine of up to 840,000 euros

Predictive Market Platform Polymarket Once Again Becomes a Focus of European Regulation. The Dutch Gaming Authority (Kansspelautoriteit, abbreviated Ksa) announced on February 17, 2026, that it has issued a “cease and desist order with a fine” (last onder dwangsom) against Adventure One QSS Inc., the operator of the Polymarket brand, demanding that they immediately stop offering unlicensed gambling services in the Dutch market. Failure to comply could result in a weekly fine of €420,000, accumulating up to a maximum of €840,000.

This incident not only highlights the regulatory gray area surrounding prediction markets in Europe but also reignites legal debates over whether prediction markets constitute gambling activities.

(What are prediction markets? Polymarket beginner guide: betting methods, settlement processes, and risk analysis)

Unlicensed Operation, Ksa Imposes Mandatory Fines

The Dutch Gaming Authority stated that Adventure One QSS Inc. has been providing online gambling services to Dutch players under the Polymarket brand without holding a Dutch gambling license, constituting illegal operation.

Ksa has formally demanded that Polymarket cease related activities immediately. If the company does not comply, it faces a fine of €420,000 per week, with a maximum total fine of €840,000. Additionally, the regulator indicated that future sanctions could include extra fines linked to revenue.

This move demonstrates the Netherlands’ zero-tolerance approach toward unlicensed online gambling platforms, even if the platform emphasizes blockchain or decentralized technology, which does not provide legal exemption.

Are Prediction Markets Equivalent to Gambling? Regulatory Disputes Surface

Over the past few months, Polymarket has frequently appeared in media headlines for hosting betting markets related to Dutch elections, sparking public discussion.

Polymarket claims that it offers “prediction markets,” not traditional gambling activities. However, Ksa has explicitly disagreed with this characterization, asserting that its operations fall under gambling and must be licensed accordingly.

The Dutch regulatory authority stated that after contacting the company regarding illegal operation issues, the platform has not made significant changes, and its services remain accessible to Dutch users. Therefore, they have decided to initiate a mandatory fine process.

This controversy highlights a core issue: when blockchain prediction markets allow users to bet on political, economic, or social events, should they be classified as financial instruments, information markets, or purely online gambling?

Official Warning: Prediction Markets May Pose Social Risks

Ksa’s licensing and supervision chief Ella Seijsener commented:

“Prediction markets are growing rapidly, and the Netherlands is no exception. But the betting markets offered by these companies are not permitted in our market, regardless of whether they are operated by licensed entities.”

She further pointed out that, beyond legal violations, prediction markets could also pose social risks, such as potential influence or manipulation of election outcomes.

The regulatory stance is clear: any operators without Ksa approval, regardless of their business model or technological innovation, are not allowed to enter the Dutch gambling market.

Blockchain Prediction Platforms Face Global Regulatory Pressure

As a well-known blockchain prediction market platform, Polymarket has attracted attention in multiple countries worldwide in recent years. With the increasing popularity of decentralized finance (DeFi) and cryptocurrency applications, prediction markets have become a new frontier but also face challenges related to unclear legal classification.

In Europe, gambling regulation generally involves strict licensing regimes. Whenever money is wagered with uncertain outcomes, most countries tend to categorize it as gambling activity. This means that even if a platform operates on blockchain technology, it may be required to obtain a local gambling license if it targets local users.

The Dutch action against Polymarket could serve as a reference case for other EU regulators.

Fines and Potential Revenue-Based Penalties

In addition to the current weekly fine of €420,000, Ksa has also indicated that future sanctions could include additional penalties linked to revenue. This suggests that if profits are generated during illegal operation, the amount could be used as a basis for further fines.

For Polymarket, if it cannot quickly adjust its access mechanisms for Dutch users, financial and reputational risks could further escalate.

This article: Netherlands Heavy Fines Polymarket! Illegal Prediction Market Service, Maximum Fine of €840,000, first appeared on Chain News ABMedia.