The KSA disclosed that it had talked to Polymarket a while back in order to ask them to remove their services and to stop accepting funds from Dutch customers.
The Dutch Gaming Authority, Kansspelautoriteit (KSA), revealed that it has imposed a fine on the rapidly growing prediction market operator Polymarket for what the Netherlands regards as illegal gambling. The firm had been issued a warning beforehand to leave the market or face sanctions.
According to the KSA, Polymarket under the name of Adventure One had been providing games of chance to players in the Netherlands. The authority recognized the growing following of Polymarket but stressed that the operator is not licensed by the Dutch to legally offer its services in the domestic market.
In the view of KSA, Polymarket has become in recent months, especially through its political contracts, the focus of attention. The Dutch regulator added that event contracts for elections provided by Polymarket have become a favorite among local players who want to follow the results.
Besides that, the KSA exhibited that Polymarket believes that its products are not gambling and that the firm disagrees with the Netherlands on the matter.
Afterwards, the KSA set a weekly fine for Polymarket of EUR 420,000, which could be increased to EUR 840,000. The regulator also pointed out that a fine based on the company’s turnover might be considered later.
Ella Seijsener, director permits and supervision at KSA, talked about the matter, mentioning the increasing popularity of prediction markets. Apart from being a hot topic in the US, the Netherlands has also witnessed a surge in the interest for such powerful tools.
However, Seijsener stressed that such businesses are not allowed in the Netherlands and that not even operators with a license are permitted to offer those products.
Ella Seijsener, director of permits and supervision of KSA said:
In addition to the social dangers of this type of prediction (like the possible influence of elections), we find that this is illegal gambling. Those who do not have a license from the KSA have nothing to do with our market. The same goes for these novel gambling platforms.
Meanwhile, the KSA named Carol Verheij as vice chair of its board of directors.
