The Netherlands Gambling Authority has ordered Polymarket's Dutch affiliate, Adventure One, to immediately halt its betting services. The regulator stated the platform allowed users in the Netherlands to place bets on topics prohibited under national law, including those related to local elections. Despite prior requests, Polymarket failed to address the issue.
Officials emphasized that prediction markets are gaining traction, but operators like Polymarket offer wagers that are not permitted in the Dutch market, even for licensed firms. This enforcement action highlights growing regulatory tensions surrounding event-based contracts, mirroring investigations in the U.S. where similar services are being scrutinized as resembling sports betting.
The Dutch move also occurs as policymakers debate tighter regulations on digital assets, including a proposed 36% capital gains tax on certain investments that could encompass cryptocurrencies.
The order has suspended Polymarket's operations in the Netherlands, illustrating the challenges emerging prediction markets face against national gambling frameworks across jurisdictions.