The Kansspelautoriteit (KSA), the Netherlands’ national gambling authority, has issued a penalty order against Polymarket, citing the decentralised prediction market platform for providing illegal gambling services to Dutch customers without the required licence. The order, published on the KSA’s official website, marks an escalation in the regulator’s efforts to clamp down on unlicensed gambling activity within its jurisdiction.
According to the KSA’s enforcement notice, Polymarket’s platform allowed users in the Netherlands to place bets on event outcomes in a manner that falls within the legal definition of gambling under Dutch law. Because Polymarket did not hold a Dutch gambling licence, the regulator concluded that it was offering unlawful gambling opportunities, prompting a formal penalty decision.
Primary Enforcement Action and Legal Rationale
In its official decision, the KSA stated that Polymarket failed to comply with the provisions of the Dutch Betting and Gaming Act, which requires all gambling operators targeting the Dutch market to possess a valid licence and meet strict regulatory obligations. The authority has imposed a compulsory penalty (last onder dwangsom) to compel Polymarket to cease offering its services in the Netherlands.
The penalty framework allows the KSA to set a daily fine that accrues if the unlawful activity continues after the deadline specified in the enforcement order. It is a tool frequently used by the regulator to ensure compliance with market entry and consumer protection rules, especially in cases where illegal operators are perceived as evading the licensing process.
Why Regulatory Clarity Is Essential for Gambling Platforms
The KSA’s action against Polymarket comes amidst broader policy debates within the Dutch gambling sector, where the regulator has publicly warned against overly restrictive proposals like blanket advertising bans and licence caps, noting the risk that such measures could inadvertently drive players to illegal markets.
This enforcement aligns with the KSA’s strategic emphasis on market integrity and responsible gambling, positioning compliance with licensing requirements as a cornerstone of legal participation in the Dutch gambling industry. The Netherlands already enforces robust marketing and consumer protection standards, including strict rules on online gambling advertising and targeted reach.
Polymarket’s Platform and the Legal Challenge
Polymarket is a blockchain‑based prediction market where participants can trade on the outcomes of future events, from elections to sports results. While platforms of this sort are often framed as information markets, the KSA determined that aspects of Polymarket’s operations, particularly the financial risk and payout structure tied to real money outcomes, placed it within the scope of gambling activity under Dutch law.
The regulator noted that the absence of licence and regulatory oversight meant that Dutch users engaged with an unregulated and potentially unsafe environment, exposing them to risks that are typically mitigated within the licensed market, such as consumer protection requirements, anti-money-laundering controls and responsible gaming safeguards.
KSA’s Role in Protecting Consumers and Maintaining Market Integrity
Part of the KSA’s mandate under the Dutch Betting and Gaming Act is to protect consumers from unfair or harmful gambling practices. By enforcing a penalty order against Polymarket, the regulator aims to signal that operators targeting the Dutch market must either obtain appropriate licensing or cease operations.
Market observers say this enforcement action underscores the regulator’s commitment to distinguishing between regulated gambling activities, which are subject to oversight and consumer protection obligations, and unlicensed offerings, which lack a safety framework and potentially expose players to financial and security harms.
This focus on protecting players is consistent with other recent KSA efforts to tighten oversight of betting features that may indirectly promote gambling behaviour, particularly in areas where products blur the lines between gaming and conventional entertainment.
The Broader European Context: Growing Regulatory Scrutiny on Unlicensed Platforms
The action against Polymarket reflects a broader European trend in which national regulators are actively enforcing licensing requirements to ensure that gambling services offered within their markets meet local oversight standards. Across the EU, gambling authorities are increasingly attentive to platforms that operate through digital channels without appropriate licensing, recognising that gaps in enforcement can undermine both consumer protections and the sustainability of regulated markets.
These enforcement efforts are part of a larger regulatory ecosystem that seeks to balance market access, player safety, and fiscal responsibility while maintaining a competitive and transparent gambling sector across jurisdictions.
What Operators and Players Need to Know About Compliance
For gambling operators, whether traditional bookmakers, iGaming platforms, or emerging blockchain‑based services, the KSA’s action against Polymarket reinforces the importance of compliance with licensing laws before engaging with Dutch players. Operators considering cross‑border offerings should factor in regulatory requirements early in their market entry strategies, including securing the necessary approvals and establishing local compliance frameworks.
For players and consumer advocates, the enforcement serves as a reminder that participation in unlicensed platforms carries inherent risks, ranging from a lack of dispute resolution mechanisms to limited protections against fraud or unfair practices.
KSA’s Continued Focus on Compliance and Consumer Protection
While the KSA’s penalty order sends a strong message, the regulator is expected to continue its enforcement efforts against other unlicensed operators that fail to adhere to Dutch law. With the digital gambling landscape evolving rapidly, including novel blockchain‑enabled products, authorities are adapting their supervision strategies to address emerging risks and ensure that all market participants operate within the legal framework.
As part of this broader trend, industry stakeholders can expect ongoing dialogue with regulators on how best to align innovation with player safety, market integrity, and legal compliance in the years to come.