It’s a tough rap. The Kansspelautoriteit of the Netherlands is intervening and imposing a penalty payment on Polymarket of up to €840,000. The gambling watchdog wants the platform to stop offering betting in the Netherlands with immediate effect.
According to the announcement, Polymarket offers online gambling without a licence. This violates Dutch law.
Penalty payment of €420,000 per week
The measure is aimed at parent company Adventure One QSS Inc. The Kansspelautoriteit claims that the company is illegally offering games of chance to Dutch players through Polymarket.
With the order under penalty, the regulator wants to put pressure. If Polymarket does not stop, a penalty of €420,000 per week will follow. That amount could rise to a maximum of €840,000.
The message is clear. Anyone operating on the Dutch market without a licence risks hefty financial consequences.
Prediction markets under fire
In recent months, Polymarket received a lot of attention because of its so-called prediction markets. The platform allows users to bet money on the outcome of current events.
The discussion flared up after Alexander Klöpping told a podcast about his bets on the Dutch elections. Collaborations with influencers such as Bender also provided additional visibility.
Millions of euros were wagered on the elections. This led to parliamentary questions and political unrest. The key question was whether this fell under gambling or not.
Ksa: this is just gambling
Polymarket itself states that it is not a traditional gambling platform. Yet the Kansspelautoriteit is clear about this. According to the regulator, it is a form of gambling.
Ella Seijsener, director of licensing and supervision at the Kansspelautoriteit, says in the news item that this kind of betting is not allowed on the Dutch market. This applies even to licensed parties.
She also points to social risks. Think of possible influence on elections. According to Seijsener, a company without a licence does not belong on the Dutch gambling market, even when it comes to new forms such as prediction markets.
With that statement, the Ksa sets the tone. Innovation is not a licence to circumvent the law.
Intervening in other countries too
Not only in the Netherlands is Polymarket under a magnifying glass. Regulators in other countries also acted against the platform. In Portugal, Polymarket had to cease all its activities.
This underlines that prediction markets are the subject of international debate. Where does prediction end and gambling begin? In the Netherlands, the Kansspelautoriteit has clearly drawn that line.
Without a licence, a provider may not offer games of chance to Dutch players. That principle applies to classic online casinos, but also to new digital platforms.
Platform still accessible
At the time of writing, Polymarket can still be reached from a Dutch IP address. It is also still possible to deposit money and place bets.
With this, the company does not seem to be responding to the Kansspelautoriteit’s call as yet. The coming weeks will show whether the penalty payment will have an effect.
The case is important for the wider online gambling market. Dutch legislation has been clear on licensing and supervision since the introduction of regulated online gambling. With this measure, the Ksa shows that it also includes new forms of online betting under those rules.