Catenaa, Wednesday, February 25, 2026- The Netherlands Gambling Authority ordered Polymarket’s Dutch affiliate, Adventure One, to immediately halt prediction market operations for residents, citing unlicensed wagering on local events. Noncompliance could result in fines up to $990,000.
Authorities said prediction market contracts, including those linked to elections, are illegal under Dutch law, even for licensed gambling operators.
Polymarket previously failed to respond to requests from regulators to address the issue.
The action highlights broader global scrutiny of event-based contracts and prediction platforms.
In the United States, similar services face state-level challenges, though the Commodity Futures Trading Commission has asserted federal jurisdiction over prediction market activity.
Dutch lawmakers are also considering tighter rules for digital assets, including a proposed 36% capital gains tax on certain investments, potentially covering cryptocurrencies if enacted by 2028.
The Netherlands’ exposure to cryptocurrency through financial securities reached €1.2 billion by October 2025, up from €81 million in 2020, largely driven by rising valuations of major digital assets rather than new investments.
Direct crypto ownership remains limited, and crypto-linked securities make up roughly 0.03% of the national investment market.
The regulator’s order temporarily suspends Polymarket’s operations in the Netherlands, emphasizing that rapid growth in prediction markets can clash with national gambling frameworks.
