Netherlands Bans Polymarket Over ‘Illegal Gambling Services’
Decrypt
by Callan QuinnFebruary 20, 2026
AI-Generated Deep Dive Summary
The Netherlands has taken a significant step in regulating cryptocurrency-based prediction markets by banning Polymarket for offering illegal gambling services without proper licensing. The country's Gambling Authority (Ksa) imposed an immediate cease-and-desist order on the platform and threatened fines of up to €462,000 per week if compliance is not met. This move highlights growing global scrutiny of prediction markets, which allow users to bet on real-world events.
Prediction markets, like Polymarket, have surged in popularity over the past two years, particularly around major political and economic events. However, regulators argue that these platforms operate as gambling services, despite operators' claims they are financial instruments. The Ksa director emphasized that offering unregulated bets, even on uncertain outcomes, violates Dutch gambling laws.
Polymarket's case underscores the broader regulatory challenges facing crypto-based prediction markets worldwide. Platforms like Kalshi and Polymarket have faced legal actions in multiple jurisdictions, including the U.S., UK, France, Germany, and now the Netherlands. These cases often hinge on whether such platforms are considered betting services or financial tools.
Despite these hurdles, Polymarket continues to expand its partnerships with major institutions, such as Substack and Major League Soccer. However, the increasing regulatory pressure signals a potential shift in how authorities view cryptocurrency-based markets, particularly those involving real-world event outcomes.
This development matters to crypto enthusiasts because it reflects broader efforts to regulate decentralized finance (DeFi) and similar platforms. As prediction markets grow more mainstream, they are likely to face heightened scrutiny from regulators globally, shaping the future of this innovative but controversial sector.
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Originally published on Decrypt on 2/20/2026