Dutch regulators have stepped in to block prediction market platform Polymarket from operating in the Netherlands, ordering its local affiliate to immediately stop offering betting services without a license.
The Netherlands Gambling Authority said Tuesday that Adventure One, Polymarket’s Dutch-linked entity, must halt its activities at once or face penalties that could reach $990,000.
According to the regulator, Dutch users were able to place wagers on events that are explicitly prohibited under national gambling law — including contracts tied to domestic elections. Officials also said the company failed to adequately respond to earlier warnings.
“Prediction markets are on the rise, including in the Netherlands,” said Ella Seijsener, the authority’s director of licensing and supervision. But she stressed that such event-based wagers are not permitted in the Dutch market — even for companies that already hold gambling licenses.
The action highlights how prediction markets, which allow users to bet on everything from political outcomes to global events, are running into regulatory barriers across multiple jurisdictions.
Polymarket’s chief legal officer, Neal Kumar, said earlier this year that the company remains open to discussions with regulators, particularly as US federal courts weigh broader questions about how prediction markets should be overseen.
The regulatory tension is not limited to the Netherlands. In the United States, similar platforms have faced scrutiny from state authorities, many of which argue that event-based contracts closely resemble sports betting. At the same time, leadership at the Commodity Futures Trading Commission has pushed back, asserting that prediction markets fall under federal oversight.
The Dutch enforcement action comes amid broader debate in the country about financial regulation and digital assets. Lawmakers in the House of Representatives recently advanced a proposal that would introduce a 36% capital gains tax on certain investments — a measure that could apply to cryptocurrencies if it becomes law. If approved by the Senate, the tax could take effect as early as 2028.
Meanwhile, Dutch exposure to crypto-linked financial products has grown significantly. Data from De Nederlandsche Bank shows that indirect crypto investments via financial securities reached approximately €1.2 billion by October 2025, up sharply from just €81 million at the end of 2020. Much of that increase reflects rising asset prices rather than a wave of new investors.
Even so, crypto-linked securities still represent only about 0.03% of the Netherlands’ overall investment market — a reminder that traditional assets continue to dominate portfolios.
In a separate development last year, Dutch crypto firm Amdax raised €30 million to launch Amsterdam Bitcoin Treasury Strategy (AMBTS), a dedicated vehicle aiming to accumulate up to 1% of the total Bitcoin supply — roughly 210,000 BTC.
For now, Polymarket’s operations in the Netherlands are effectively on pause, underscoring how rapidly expanding prediction markets are increasingly clashing with established national gambling rules.
