The loss denies the teenager an opportunity to replace Luke Humphries as the world No. 1, a feat that would have been secured by winning the tournament.
Top seed Nathan Aspinall also exited the competition, falling to the Netherlands’ Danny Noppert after a strong showing in the earlier rounds.
Humphries closed out Saturday night with a tight win against Scotland’s Cameron Menzies.
Tonight's results
Searle 2-10 Van Veen
Gurney 10-6 Smith
Schindler 7-10 Joyce
Dobey 5-10 Van Gerwen
Pietreczko 10-6 Wattimena
Aspinall 7-10 Noppert
Littler 7-10 Wade
Humphries 10-9 Menzies