Polymarket takes the Netherlands Gambling Authority (KSA) to court. The prediction market firm argues that its event contracts should be regulated as financial derivatives rather than gambling products.
The lawsuit action follows KSA enforcement action over Polymarket’s availability to Dutch users. The regulator ordered the platform to stop its operations for the Dutch users, otherwise it will face penalties of €420,000 per week, up to €840,000.
The investigation by the regulator began back in 2025. An inspector accessed Polymarket from the Netherlands and placed small trades on markets linked to Dutch political events. Polymarket argues that users trade positions against each other and that prices and settlements are determined by market activity and automated protocols rather than a traditional gambling mechanism.
According to Polymarket, they have referred to similar platforms established in different places in the world and argued that event contracts should be classified under financial regulation. The company has used the same argument while talking to UK and European financial regulators, namely UK Financial Conduct Authority and European Securities and Markets Authority (ESMA).
KSA refused to accept Polymarket’s claims in June stating that classification of the similar entities in other countries does not set their categorization according to the Dutch law.
Polymarket’s appeal would be handled by the administrative law section of the Hague District Court. KSA’s decision is valid until the court decides otherwise and Polymarket still has Netherlands among its restricted jurisdictions.
The case could ultimately reach Council of State, Netherlands’ highest administrative court.
