Netherlands: Polymarket Appeal Rejected - Prediction Markets Remain Gambling

The Dutch gambling regulator Kansspelautoriteit (KSA) has rejected an appeal by Adventure One QSS Inc., the operator of the prediction platform Polymarket. According to the KSA, Polymarket's products fall under Dutch gambling laws. The company could face enforcement measures if it fails to comply with local regulations. The decision was published on June 23, reaffirming the authority's earlier position.

The KSA had already sanctioned Polymarket in January, demanding the immediate cessation of activities in the Netherlands. Non-compliance threatened weekly fines of 420,000 Euros, up to a maximum of 840,000 Euros. Adventure One missed the February 17 deadline. IP-blocking measures were only implemented the following day.

Numbers and facts

The Kansspelautoriteit (KSA) published its decision to reject the appeal on June 23, 2026. It had been monitoring Polymarket since January. An initially granted four-week grace period for shutting down services was missed. This led to automatically accruing penalties. The potential maximum penalty is 840,000 Euros. Interestingly, Polymarket encouraged users on its Dutch version of the platform to "profit from their knowledge by betting on future events."

“The element of chance remains central to how the service works. This keeps the platform within the scope of Dutch gambling law.” - Kansspelautoriteit (KSA) on rejecting Adventure One QSS Inc.’s arguments

Polymarket argued that it was merely an interface to an open-source blockchain protocol. Users were trading peer-to-peer positions via crypto wallets. It also referred to the fact that such activities are regulated as a financial product in some cases. These arguments were vehemently rejected by the KSA. The element of chance was decisive. The use of blockchain technology and cryptocurrencies also did not change the fundamental classification as gambling.

Background

The Dutch gambling authority places great importance on compliance with the law. As early as 2021, appeals against the lottery monopoly were rejected. The KSA had emphasized that a single licensing system for state lotteries was justified. At that time, it rejected appeals from Betfair and the Dutch Online Gambling Association (NOGA). The current decision against Polymarket is a continuation of this consistent regulatory practice. It shows that the KSA does not deviate from its core definition of gambling, even with new technologies such as blockchain and cryptocurrencies.

Polymarket's marketing statements played an important role in the decision. The KSA found that the Dutch version of the platform encouraged users to "profit from their knowledge by betting on future events." Such wording resembles gambling advertising, not neutral financial products. The authority viewed this as additional evidence that the service was aimed at gambling consumers. In addition, Polymarket offered materials in Dutch. This suggests a targeted approach to the local market. Italy also blacklisted Polymarket for gambling violations. South Korea is also investigating the platform for possible illegal gambling violations.

Why it matters for German players

For German players interested in online gambling, this case is a clear signal. Germany has also introduced strict rules with the Interstate Treaty on Gambling 2021 (GlüStV 2021). The Joint Gambling Authority of the Federal States (GGL) licenses and supervises online gambling providers. Players should exclusively use providers listed on the GGL's so-called whitelist. These casinos adhere to fixed regulations. These include a stake limit of 1 Euro per spin on slot machines and a monthly deposit limit of 1,000 Euros via LUGAS. LUGAS is a nationwide monitoring system for player identification and limit control.

Providers without a GGL license operate illegally in Germany. They do not offer player protection according to German standards. Prediction markets, such as those offered by Polymarket, are also likely to be classified as gambling in Germany. They would then be subject to the strict provisions of the GlüStV 2021. A rapid liberalization of such offerings is not to be expected. The focus is clearly on channeling towards the regulated market and protecting players.

What it means for GGL-licensed casinos

For GGL-licensed casinos in Germany, this development confirms the path taken. European regulatory authorities are showing an increasingly convergent stance on grey areas in gambling. The KSA decision underscores the view that "gambling" cannot be disguised by the use of new technologies. This strengthens the regulated market. It creates more security for licensed operators. The GGL will continue its controls. It will pursue illegal providers who try to circumvent regulations via technical loopholes or unclear definitions. The commitment to player protection and compliance with clear rules remains the top priority in Germany. There are no signs of a softening of existing limits or licenses.

“The involvement of blockchain technology, crypto wallets, or decentralized protocols does not exempt the operator from Dutch gambling laws.” - Kansspelautoriteit (KSA) on the significance of technology at Polymarket

The Polymarket case also shows the importance of clear communication of rules. In Germany, licensed providers must carefully review their marketing materials. Misleading statements are not allowed. The Dutch example underlines that even the choice of words in advertising texts can lead to classification as gambling. GGL-licensed casinos must strictly adhere to advertising guidelines. They must ensure transparency and player protection.