Polymarket's Netherlands Entity Ordered to Halt Operations by Gambling Regulators
Adventure One, the Netherlands-based entity of the prediction market platform, faces allegations of providing unlawful wagering services, including betting opportunities on Dutch electoral contests.
According to the Netherlands Gambling Authority, a financial penalty has been levied against Adventure One, the Dutch entity of prediction markets operator Polymarket, for providing gambling services to Dutch residents in the absence of proper licensing.
Through a notice issued on Tuesday, the Dutch regulatory body commanded the Polymarket-affiliated company to "cease its activities immediately," warning that failure to comply could result in penalties reaching as high as $990,000. The authorities stated that Adventure One had been operating in breach of Dutch regulatory frameworks by facilitating unlawful wagering opportunities, including bets related to domestic elections, and the organization had failed to respond to official communications requesting remediation of these operations.
"Prediction markets are on the rise, including in the Netherlands. These types of companies offer bets that are not permitted in our market under any circumstances, not even by license holders."
Ella Seijsener, Netherlands Gambling Authority's director of licensing and supervision
Similar regulatory challenges confront Polymarket and comparable platforms that provide event contracts through prediction market services in the United States, where numerous state-level authorities have initiated legal proceedings concerning sports betting activities. Nevertheless, on Tuesday, the chairman of the Commodity Futures Trading Commission, a federal financial regulatory body, announced his intention to uphold the agency's "exclusive jurisdiction" over prediction market operations, expressing opposition to interventions at the state level.
A request for comment was submitted to Polymarket by Cointelegraph, though no reply had been furnished by the time this article went to press. On Feb. 9, the platform's chief legal officer, Neal Kumar, stated that Polymarket "welcome[s] dialogue with other states while the federal courts" consider the issue of jurisdiction in the US.
Dutch tax on crypto passes House of Representatives
The regulatory action taken against Polymarket in the Netherlands occurred less than one week after the nation's House of Representatives moved forward with a legislative proposal that would establish a 36% capital gains tax on investment activities, which would presumably encompass cryptocurrency holdings. Should the measure gain approval from the Dutch Senate and receive official authorization, implementation could commence as soon as 2028.