TLDR:
- The Ksa fined Polymarket €420,000 per week, up to €840,000, for operating without a Dutch license.
- Ella Seijsener said prediction markets pose social risks, including potential influence on election outcomes.
- Hungary and Portugal issued simultaneous bans against Polymarket for unauthorized political event betting.
- Kalshi and Polymarket argue their platforms are financial instruments, but regulators continue rejecting that claim.
Polymarket has been ordered to stop all operations in the Netherlands following a ruling by the Dutch Gambling Authority.
The regulator determined that the prediction market platform offers illegal gambling services without holding a local license.
The authority imposed a penalty of €420,000 per week on Adventure One QSS Inc., Polymarket’s parent company.
This action adds to a growing list of regulatory bans the platform has faced across Europe and other parts of the world in early 2026.
Dutch Authority Calls Prediction Markets Illegal Under National Law
The Netherlands Gambling Authority, known as the Ksa, published its enforcement order on Tuesday. It named Adventure One QSS Inc. as the party responsible for Polymarket’s operations in the country.
The authority said the platform offers betting products that Dutch law does not permit under any circumstances. Fines will apply weekly, up to a total ceiling of €840,000.
Ella Seijsener, director of licensing and supervision at the Ksa, explained the rationale behind the ban. She stated that “prediction markets are on the rise, including in the Netherlands,” adding that these companies “offer bets that are not permitted in our market under any circumstances.”
According to her, no license holder in the Netherlands would be permitted to offer such contracts. She made clear that “anyone without a Ksa license has no business in our market.”
Jan Scheele, a board member at the Blockchain Netherlands Foundation, said the move aligns with Dutch regulatory tradition.
He noted that the Netherlands has “a reputation for applying relatively strict standards when it comes to licensing requirements and regulatory compliance, including in emerging sectors such as crypto and digital assets.”
Regulators there typically expect companies to obtain authorization before serving Dutch users. Consumer protection and anti-money laundering compliance are central to that approach.
Scheele also explained how Dutch regulators assess financial products like prediction markets. He said it “reflects a regulatory culture that prioritises consumer protection and systemic integrity over a more permissive, innovation-first approach.”
If a user stakes money on an uncertain outcome and earns a return, that resembles a wager legally. Under current Dutch law, potential informational benefits of such markets do not override licensing requirements.
International Bans Mount as Prediction Markets Face Legal Battles Globally
Hungary and Portugal issued their own bans against Polymarket on the same day as the Netherlands. The Portuguese Gaming Regulatory Authority stated the platform is not authorized to offer betting in the country.
Political event betting, in particular, falls outside what national law permits there. Polymarket has now faced regulatory or legal challenges in more than a dozen countries.
Rival platform Kalshi is currently defending a class action lawsuit in New York’s Southern District. Plaintiffs allege Kalshi operates as an illegal and unlicensed sportsbook.
Connecticut Indian tribes argued in an amicus brief that Kalshi has used its business to “siphon” money away from their licensed casinos. Kalshi responded by suing the Connecticut Department of Consumer Protection in December 2025.
Both Polymarket and Kalshi maintain their platforms function as financial instruments, not gambling tools. Kalshi CEO Tarek Mansour previously described his platform as “an open financial marketplace” where users trade against each other.
He argued that “if we are gambling, then I think you’re basically calling the entire financial market gambling.”
However, that argument has not deterred regulators from pursuing enforcement across multiple jurisdictions.
Despite the bans, Polymarket has continued building commercial partnerships. The company announced a content integration deal with Substack, stating that “journalism is better when it’s backed by live markets.”
It also secured a sponsorship with Major League Soccer in January 2026. Polymarket has not responded publicly to the Dutch enforcement order.