KSA Fines Polymarket Over Unauthorized Gaming

The Dutch Gaming Authority, Kansspelautoriteit (KSA), announced that it has penalized the increasingly popular prediction markets operator Polymarket over what the Netherlands considers to be illegal gambling. The operator was previously encouraged to exit the market or risk a fine.

Polymarket Finds Itself in Hot Water in the Netherlands

According to the KSA’s official announcement, Adventure One’s Polymarket brand offered games of chance to Dutch players. While the authority acknowledged the growing popularity of Polymarket, it also pointed out that the business does not possess a Dutch gaming license that would allow it to offer its products locally.

In its announcement, the KSA noted that Polymarket has been in the news a lot in recent months, especially due to its political contracts. The Dutch regulator noted that Polymarket’s event contracts on the Dutch elections have proved increasingly popular among local players who wish to be engaged in the outcome.

The KSA also acknowledged that Polymarket does not consider its offerings to constitute gambling. However, it emphasized that the Netherlands has a different position on this matter.

The Netherlands Does Not Allow Prediction Markets

The KSA said that it had previously contacted Polymarket, asking it to take down its offerings and stop taking money from players in the Netherlands. However, the prediction markets operator did not comply, with the KSA saying that “no visible change has occurred” and that Polymarket’s platform was still available to players in the Netherlands.

As a result, the KSA hit Polymarket with a penalty payment of EUR 420,000 a week to a maximum of EUR 840,000. The KSA added that a turnover-related fine may be imposed at a later date.

Ella Seijsener, KSA’s director of permits and supervision, commented on the matter, highlighting prediction markets’ rise in popularity. While prediction markets have become a major topic in the US, the Netherlands has also been affected by their explosive rise.

However, Seijsener emphasized that such businesses are not allowed in the Netherlands and that even licensed operators are not allowed to offer such products.

In addition to the social dangers of this type of prediction (like the possible influence of elections), we find that this is illegal gambling. Those who do not have a license from the KSA have nothing to do with our market. The same goes for these novel gambling platforms.

Ella Seijsener, director of permits and supervision, KSA

In the meantime, the KSA appointed Carol Verheij as vice chair of its board of directors.