The Kansspelautoriteit (KSA) gambling authority in the Netherlands said it had issued a penalty notice to Adventure One QSS Inc., the operator of Polymarket. The reason for that was offering gambling services in the country without a license. The KSA ordered Polymarket to cease its activities immediately or risk incurring penalties of €420,000 every week, which is capped at €840,000.
The KSA statement also indicated that enforcement action may not be limited to the weekly penalty. It stated that a fine that relates to turnover may be imposed in the future, pending the outcome of this case.
The date of the news item from the regulator is given as 17 February 2026. However, another entry under KSA indicates that the underlying decision on penalties is subject to documentation dated 20 January 2026 and that objections may be filed against the decision.
Why the KSA Says These Markets Don’t Fit Dutch Rules
KSA said that it had already contacted the company about its offer of illegal gambling in the Netherlands and didn’t see any visible change. So, the regulator stated that the offering remained accessible.
An important part of the rationale given by KSA is its definition of the activity. Polymarket defines its activity as not being gambling, while KSA defines it as illegal gambling in the Netherlands.
Ella Seijsener, the licensing and supervision director at KSA, stated that the problem was broader than Polymarket only. According to her, prediction markets are becoming more popular, and the bets being made there may not be permitted in the Netherlands under any circumstances (even for licensed operators). She also stated that there are social risks, as bets on election markets could interfere with democratic processes.
Dutch media coverage connected the order to the election markets, as the regulator considered them accessible to users in the Netherlands even though there was no Dutch licence.
Global Scrutiny is Rising for Event-Based “Contracts”
The Dutch move comes as other regulators elsewhere are also looking to determine whether prediction markets fall under the realm of gambling legislation or financial market oversight. In the US, the Nevada Gaming Control Board has taken action against Kalshi. It stated that certain event-based prediction markets are akin to sports betting and need to be regulated as such.
This has come to the forefront as the Commodity Futures Trading Commission has entered the fray with its comments in the courts as far as prediction markets are concerned.
Bottom Line
The Dutch order serves as a reminder that new-format products are still subject to the same gambling laws as any other offerings (especially when accessible within the country and related to sensitive topics). For operators working on prediction-style markets, the takeaway is to take the same approach as any other high-risk launch.
