TL;DR
- A January 2026 order by the Kansspelautoriteit classified the platform’s services as illegal gambling and unlicensed betting, resulting in a ban for Polymarket in the Netherlands.
- Polymarket faces €420K weekly fines, capped at €840K total, and Dutch access is now restricted via geo-blocking.
- The case highlights the broader debate over the regulation of prediction markets and event contracts, as European authorities tighten regulation across Europe.
The Polymarket ban in the Netherlands marks a new phase in Europe’s regulatory scrutiny of blockchain-based prediction markets. In January 2026, the Kansspelautoriteit, the Dutch gambling authority, ordered the platform to halt operations in the Netherlands, concluding that it was offering illegal gambling without a local license.
Under the enforcement order, Polymarket faces a €420K weekly fine if it fails to comply. Those penalties are capped at €840K in total, meaning the maximum exposure would be reached after two weeks of continued non-compliance. The regulator stated that the platform’s services amount to unlicensed betting under Dutch law and, therefore, the company cannot offer such services to residents.
Dutch access is now restricted via geo-blocking, following the post-order compliance period. Users connecting from the Netherlands can no longer participate in markets, reflecting the enforcement of the order.
KSA’s Prediction Markets Ruling
At the center of the Dutch Polymarket crackdown is a legal classification issue. The Kansspelautoriteit rejected the company’s framing of its products as financial-style prediction markets and instead treated them as illegal gambling under national statutes.
This determination reflects the broader tension between gambling vs event contracts regulation. Platforms such as Polymarket argue that their offerings function as information markets built around those principles. However, the Dutch gambling authority concluded that users were effectively placing wagers on uncertain outcomes for potential financial gain.
In addressing the question of whether Polymarket is gambling, the regulator relied on this gambling-event divide rather than the platform’s branding. Because participants stake value on future events and receive payouts based on results, the activity met the legal definition of gambling under Dutch law.
That approach places the platform within domestic gambling oversight rather than financial supervision. The ruling adds to the ongoing debate over prediction market regulation in Europe, as similar platforms expand across jurisdictions.
Election Betting and Regulatory Concerns
The enforcement action targeted political markets, including those on Dutch parliamentary elections from October 2025, where users wagered millions. Under Dutch law, even licensed operators cannot offer election betting, amplifying KSA’s concerns over election integrity and public confidence.
While licensing violations drove the order, these prohibited political markets heightened urgency, as Director Ella Seijsener warned of their potential to influence democratic processes.
Enforcement Impact and Compliance Measures
The Dutch gambling authority backed the Polymarket ban with a coercive order to compel immediate compliance. The capped €840K penalties function as a financial deterrent rather than a retroactive sanction.
Following the order, access from the Netherlands was restricted through geo-blocking. Reports indicate that Dutch users can no longer actively trade or participate in markets, confirming the decision’s implementation.
The Kansspelautoriteit emphasized that combating illegal gambling remains a priority, particularly where offshore platforms target domestic users without authorization. Enforcement tools such as escalating weekly fines are common to pressure operators into compliance.
What This Means for Prediction Markets in Europe
The Dutch action does not stand alone. Hungary recently restricted Polymarket, and Portugal also moved against the platform over similar gambling concerns. Those developments suggest that national regulators are increasingly applying domestic gambling laws to cross-border prediction markets.
>>> Related: Polymarket Faces Crackdown in Europe
As authorities refine their stance, prediction market regulation in Europe faces a clearer dividing line. In the Netherlands, that line now places certain event-based contracts squarely within gambling supervision rather than financial oversight.
The Polymarket ban in the Netherlands illustrates how regulators are drawing a firm line between innovative prediction markets and traditional betting. More bans are likely as EU regulators align approaches. The Dutch position may well serve as a blueprint for jurisdictions targeting unlicensed offshore platforms.
