The Dutch playing watchdog has instructed Polymarket to cease working within the Netherlands instantly or begin paying steep weekly penalties.
On Tuesday (February 17), the Kansspelautoriteit (Ksa) mentioned it has issued a “final onder dwangsom” (order underneath risk of a fantastic) to Journey One QSS Inc., the corporate behind the prediction-market platform Polymarket, for offering video games of likelihood to individuals within the Netherlands with out a correct licence.
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Underneath that order, the platform should block entry for Dutch customers straight away. If it fails to take action, the regulator can levy a penalty of €420,000 per week. That quantity can double as soon as, reaching a most of €840,000.
In response to the Ksa, the transfer follows earlier warnings and discussions with the corporate. Regardless of that contact, officers say Dutch customers had been nonetheless capable of entry and use the service.
Polymarket is underneath scrutiny within the Netherlands
Polymarket describes itself as a prediction market slightly than a conventional betting web site. The platform permits customers to stake cash on the result of real-world occasions, together with political elections. In latest months it has drawn consideration within the Netherlands for providing markets tied to Dutch political contests.
The corporate maintains that prediction markets fall outdoors playing laws. Dutch regulators see it otherwise. After analyzing how the platform works, the Ksa concluded that its choices meet the authorized definition of a kansspel, or sport of likelihood, which implies a Dutch licence is required.
Ella Seijsener, director of licensing and supervision on the Ksa, mentioned prediction markets are rising in recognition however “this sort of firm affords bets that aren’t allowed on our market, even by licence holders. Past the societal risks of those predictions — such because the doable affect on elections — we see this as unlawful playing. If you happen to don’t have a Ksa licence, you haven’t any place on our market.”
The regulator has additionally signaled that additional motion may observe. Along with the weekly penalties, it could impose a separate turnover-related fantastic if the alleged violations proceed.
Dutch playing guidelines require any operator providing video games of likelihood to native gamers to carry a licence from the Ksa. The framework is meant to protect customers from dangers equivalent to dependancy, fraud and unfair play. Firms that ignore the foundations can face fines, binding orders or different enforcement measures.
The case lands amid a broader crackdown by the Dutch authorities. In latest months, the Ksa has tightened oversight of promoting, together with enforcement of , and has questioned the coalition authorities’s plans to curb unlawful playing adverts. On the identical time, it has adjusted its licensing system, introducing a streamlined and restricted licence choice to make compliance clearer for reliable operators.
Polymarket has additionally attracted political scrutiny. Lawmakers raised questions after a widely known Dutch web persona publicly claimed to have earned 1000’s of euros by betting on his personal nation’s election via the platform.
Featured picture: Polymarket / Canva
