KSA Issues Polymarket €420K Weekly Penalty

The Dutch gambling authority has ordered Polymarket to stop operating in the Netherlands immediately. The Kansspelautoriteit (KSA) issued the warning to the US-based prediction platform this week.

The regulator demands immediate compliance. If Polymarket ignores this order, it will pay €420,000 per week in fines. These penalties can double to €840,000. The KSA may also impose additional sanctions based on the platform’s actual earnings.

The crackdown follows intense scrutiny over the October 2025 parliamentary elections. Dutch users wagered over $32 million on political outcomes during this period. Many bettors placed large bets on the PVV and D66 parties.

Dutch law bans all wagering on political and news events. This prohibition applies to prediction markets and traditional bookmakers alike. Even licensed operators cannot offer these bets legally.

Ella Seijsener, Director of the KSA, highlighted serious concerns. She stated: “These markets create significant social risks. They can potentially influence the integrity of national elections.” The authority classifies such activities as illegal gambling.

The KSA emphasizes that prediction markets function as gambling operations under Dutch law. The platform allows users to bet on real-world event outcomes. This model conflicts with Netherlands gambling regulations.

The regulator has taken a firm stance against unlicensed operators. The massive fines demonstrate the authority’s commitment to enforcement. Polymarket now faces a critical decision. It can either withdraw from the Dutch market or risk substantial financial penalties.

The case highlights ongoing tensions between prediction markets and European regulators. Several countries have questioned the legal status of these platforms. The Netherlands joins a growing list of jurisdictions challenging their operations.

The KSA will monitor compliance closely. Weekly fines will accumulate until the platform exits the market or secures proper licensing. Given the prohibition on political betting, licensing appears unlikely for this segment of Polymarket’s business.