Spain’s gambling regulator, the Dirección General de Ordenación del Juego (DGOJ), has ordered a temporary block against Polymarket and Kalshi.
The block is a precaution as the regulator launches formal proceedings against the two international prediction-market platforms.
The DGOJ, under the ministry for Social Rights, Consumer Affairs and Agenda 2030, announced on Tuesday that both platforms were offering services within Spain despite not holding the mandatory administrative licences required under the country’s gambling regulations.
The sanctioning procedures have been officially published in the Boletín Oficial del Estado, however it is anticipated it will be three to four months before a definitive ruling is reached.
Following the final decision, operators may choose to seek proper licensing in Spain, legally challenge their classification, or adjust their service offerings to comply with local regulations.
Consumer protection
In its statement, the DGOJ characterised prediction markets as a form of gambling because they involve “placing bets on uncertain future outcomes”. Accordingly, these operators must obtain a specific administrative licence to provide services legally in Spain.
The regulator cited multiple consumer-protection deficiencies found in unauthorised platforms, including the absence of effective identity-verification systems, controls to restrict access by minors and self-excluded individuals and insufficient supervision standards.
Prior to the publication of the sanctions notices, efforts by the regulator to notify Polymarket and Kalshi at known foreign addresses were unsuccessful.
Europe continues to grapple with prediction markets
European regulators, including those in Spain, continue to grapple with how to classify and regulate prediction markets. Jurisdictions vary, with some applying gambling laws and others assessing whether the platforms fall under financial securities or commodities regulations.
Spain is not the first to block prediction market sites, with Polymarket having been banned by France in 2024. The country claimed that the type of gambling offered by the website was “likely” in breach of French law. It joins Germany, Belgium, Portugal, Switzerland, Romania, the Netherlands and Poland as European nations that have blocked Polymarket.
On the other side of the coin, Gibraltar and Malta are focusing on its regulation. In March this year, Malta’s Economy Minister Silvio Schembri said it was “actively exploring the emerging field of prediction markets” with sights set on potential regulation.
Gibraltar licensed its first prediction market operator earlier this year.
There remains an ongoing debate between platforms positioning their services as forecast tools or financial products, and regulators focused on consumer protection and applying gambling legislation to bets on uncertain future events.
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.
