Dutch Gambling Authority Orders Polymarket’s Local Unit to Stop Operations
Amsterdam, 20 February 2026 – The Netherlands Gambling Authority (Kansspelautoriteit) has issued a formal notice requiring Adventure One, the Dutch subsidiary of prediction‑market platform Polymarket, to halt all gambling‑related activities immediately. The regulator also warned that non‑compliance could trigger fines of up to €900 000 (approximately $990 000).
What prompted the enforcement action?
The authority’s investigation found that Adventure One was offering contracts that qualify as gambling under Dutch law, despite not holding a valid licence to do so. Among the prohibited contracts were wagers tied to the outcome of Dutch national and local elections—betting formats that are expressly forbidden in the country, even for licensed operators.
The regulator’s director of licensing and supervision, Ella Seijsener, highlighted the broader trend: “Prediction markets are on the rise, including in the Netherlands. These types of companies offer bets that are not permitted in our market under any circumstances, not even by licence holders.”
The notice, published on Tuesday, gave Adventure One a short window to cease its services. Failure to comply will result in the stipulated penalty.
Polymarket’s response
Polymarket has not provided a comment to Cointelegraph at the time of writing. The platform’s chief legal officer, Neal Kumar, previously indicated on 9 February that the company is open to dialogue with regulators while the U.S. federal courts assess jurisdictional issues surrounding prediction markets.
International context
The Dutch enforcement move comes as U.S. regulators grapple with similar questions. In the United States, several state gambling commissions have launched lawsuits against platforms that enable sports and event‑based betting. Conversely, the Commodity Futures Trading Commission (CFTC) has asserted that it retains exclusive jurisdiction over prediction‑market activities, criticizing state‑level actions.
Related regulatory developments in the Netherlands
The crackdown coincides with a separate legislative initiative in the Dutch House of Representatives. Lawmakers have advanced a proposal to impose a 36 % capital‑gains tax on investment income, a measure which would likely extend to cryptocurrency holdings. If the Senate approves the bill and the President signs it into law, the tax could become effective as early as 2028.
Analysis
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Regulatory certainty remains elusive – The Polymarket case underscores the fragmented regulatory landscape for prediction markets. While the CFTC in the United States claims exclusive authority, European regulators are treating such platforms as traditional gambling services, demanding licences and imposing strict prohibitions on political betting.
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Potential ripple effects for crypto‑related betting – As Dutch authorities tighten oversight of prediction markets, other European jurisdictions may follow suit, especially where political or election‑related contracts are concerned. Platforms operating without explicit licences could face similar enforcement actions.
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Compliance costs could rise – The threat of a near‑million‑dollar fine and the broader push for taxation of crypto profits suggest that operators may need to allocate significant resources toward legal and compliance frameworks to continue operating in Europe.
- Market participants should reassess exposure – Users of prediction‑market platforms should be aware that contracts deemed illegal in a given jurisdiction can be withdrawn or suspended without notice, potentially affecting liquidity and market depth.
Key Takeaways
- Immediate cease‑and‑desist order: Adventure One must stop offering gambling contracts in the Netherlands or face fines up to €900 000.
- Election‑related wagers prohibited: Dutch law bans betting on political outcomes, a restriction that applies even to licensed operators.
- Regulatory scrutiny is intensifying: Both European and U.S. regulators are actively defining the legal boundaries of prediction markets.
- Potential broader impact: The case may prompt other European regulators to enforce similar licence requirements, influencing how crypto‑based betting platforms structure their services.
- Tax policy on the horizon: A proposed 36 % capital‑gains tax on crypto investments could further affect the profitability and attractiveness of prediction‑market participation.
The enforcement action against Polymarket’s Dutch arm highlights the growing tension between innovative prediction‑market platforms and traditional gambling regulators. As authorities worldwide clarify their positions, market participants and operators will need to navigate an increasingly complex legal environment.
Source: https://cointelegraph.com/news/dutch-authorities-call-on-polymarket-arm-to-cease-activities?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
