Dutch Authority Mandates Polymarket to Cease Unlicensed Betting Activities

crypthub

about 8 hours ago

Enforcement Against Polymarket

The Netherlands Gambling Authority ordered Polymarket’s Dutch affiliate, Adventure One, to halt unlicensed betting services for residents. Regulators warned the platform must cease operations immediately or face fines up to €840,000 weekly. The move targets prediction markets, deemed illegal under Dutch law, even for licensed gambling operators. Authorities cited violations involving bets tied to local elections and noncompliance with prior requests.

Regulatory Challenges for Prediction Markets

Dutch officials emphasized prediction markets are prohibited in the Netherlands, reflecting global regulatory scrutiny of event-based contracts. The case highlights tensions between platforms and regulators, with similar debates emerging in the U.S. over state and federal oversight. Polymarket’s legal team previously expressed openness to discussions while U.S. courts evaluate market regulation.

Crypto Investments and Tax Proposals

Dutch indirect crypto investments reached €1.2 billion by 2025, driven by rising digital asset prices. Despite growth, direct crypto ownership remains limited, with crypto securities comprising just 0.03% of the investment market. Meanwhile, Dutch lawmakers proposed a 36% capital gains tax on certain digital assets, potentially affecting cryptocurrencies if enacted by 2028.