Polymarket, a platform on which users can bet with crypto on the outcome of all kinds of events, must immediately stop in the Netherlands. After investigation, the Gaming Authority (Ksa) ruled that Polymarket is in practice a gambling company. Because the company does not have a permit, the offer here is illegal and carries a significant penalty.
Ksa calls Polymarket illegal gambling
The Ksa imposes a penalty on Polymarket’s parent company. If the platform continues to give Dutch people access, it could be fined 420,000 euros per week, up to a maximum of 840,000 euros.
The regulator says that Polymarket is not a “prediction market” in the sense of an informative poll, but a form of gambling. The Ksa also points out social risks, such as possible influence on elections.
According to RTL Nieuws, the regulator also deliberately tested the threshold by placing a bet itself, to see how easy it is to participate from the Netherlands. No effective blocks were found to prevent Dutch players.
Why prediction markets are hitting the crypto world
On Polymarket, users can bet on sports, politics and even financial outcomes. This makes the platform extra attractive for crypto users, because betting often involves stablecoins or other crypto. The Bitcoin price is also a regular topic on these types of markets, for example with “yes” or “no” contracts about a price level at a certain time.
This mix of crypto and “bets on reality” has been causing discussion for some time. In the United States, Polymarket was tackled by the regulator CFTC in 2022 and the company had to pay $ 1.4 million because it allegedly offered an unregistered market for so-called event contracts.
What does this mean for Dutch users?
The message from the Ksa is clear: without a Dutch license, Polymarket is not allowed to offer games of chance here. And even if a party did have a permit, betting on political events is in principle not allowed in the Netherlands.
At the same time, it is questionable how watertight a ban is in practice. Experts have long pointed out that blocks can be circumvented, for example via a VPN. Nevertheless, the Ksa wants to put pressure with the penalty so that the platform takes active measures to keep Dutch people out.
For the crypto sector, this is another signal that regulators are looking more closely at gray areas where “trading” and “gambling” overlap. Especially when it comes to markets that respond to news and politics.
Source: https://newsbit.nl/polymarket-verboden-in-nederland-ksa-grijpt-in-en-dreigt-met-boetes/
