The Netherlands has ordered prediction market platform Polymarket to stop operating in the country, calling its services illegal gambling.
Quick Summary – TLDR:
- The Netherlands Gambling Authority ordered Polymarket to immediately cease services in the country.
- The company faces fines of €420,000 per week, up to €840,000 if it does not comply.
- Regulators say prediction markets pose social risks and are not allowed even with a license.
- The move adds to growing global scrutiny of prediction market platforms.
What Happened?
The Netherlands Gambling Authority, known as Ksa, has imposed a penalty order on Adventure One QSS Inc., the operator behind Polymarket. The regulator said the platform was offering gambling services in the Netherlands without a valid license.
If Polymarket does not immediately stop serving Dutch users, it will face a fine of €420,000 per week, with a maximum penalty capped at €840,000.
LATEST: 🇳🇱 As of February, @Polymarket has been geoblocked in several EU countries now, including the Netherlands. pic.twitter.com/Z3i9D01sjM
— crypto.news (@cryptodotnews) February 20, 2026
Dutch Regulator Calls Prediction Markets Illegal Gambling
In a statement published Tuesday, the Ksa made its position clear. Ella Seijsener, director of licensing and supervision at the regulator, said prediction markets are growing quickly in the Netherlands.
Seijsener said:
The regulator specifically warned about the potential influence of such platforms on elections and other real world events. According to the Ksa, allowing users to stake money on uncertain outcomes qualifies as gambling under Dutch law.
Polymarket Faces Growing Global Pressure
The action from the Netherlands adds to mounting regulatory challenges for Polymarket and the wider prediction market industry. While operators argue that their products function more like financial instruments, regulators in several countries see them as traditional betting platforms.
The debate centers on whether allowing users to place money on political, sports, or macroeconomic outcomes should fall under existing gambling regulations. As these markets expand into sensitive areas such as elections, scrutiny has intensified.
Despite regulatory headwinds, the sector continues to grow at a rapid pace. According to a November 2025 report by Dune and Keyrock, combined monthly trading volumes on leading prediction platforms exceed $13.5 billion. More than 43 million transactions were processed during that period, highlighting the scale of user activity.
Polymarket has not slowed its commercial ambitions. Just one day after the Dutch enforcement announcement, the company revealed a partnership with Substack. The collaboration allows writers on the publishing platform to embed live Polymarket data into their newsletters. The company said that “journalism is better when it’s backed by live markets.”
Earlier this year, Polymarket also partnered with Major League Soccer. Meanwhile, rival platform Kalshi has secured deals with CNBC and CNN, further signaling that mainstream media and sports organizations are increasingly engaging with prediction market operators.
What This Means for the Industry?
The Netherlands decision could influence how other European regulators approach prediction markets. By labeling the platform’s services as illegal gambling outright, the Ksa has drawn a clear regulatory line.
At the same time, companies like Polymarket are positioning themselves as innovative financial platforms rather than betting sites. That argument may face more legal tests as governments review existing gambling laws in light of fast evolving digital markets.
SQ Magazine Takeaway
I think this move from the Netherlands is a serious warning for the entire prediction market industry. Regulators are not just watching anymore, they are taking action. When a country threatens fines of up to €840,000, it sends a message that compliance is not optional.
At the same time, it is hard to ignore how fast this space is growing. With billions in trading volume and partnerships with major media and sports brands, prediction markets are clearly gaining traction. The real question now is whether lawmakers will update regulations to fit this new model or continue treating it strictly as gambling. Either way, more crackdowns could be coming.
