Spain blocks Polymarket and Kalshi for operating without a license
The Ministry of Social Rights, Consumer Affairs and Agenda 2030 of Spain has opened sanctioning proceedings against Polymarket and Kalshi, two of the world's best-known prediction market platforms, for alleged infringement of Spanish gambling regulations. As a precautionary measure during the investigation, the Directorate General for the Regulation of Gambling (DGOJ) ordered the blocking of both firms' websites in Spanish territory.
The regulatory authority maintains that the platforms, domiciled abroad, are allowing users residing in Spain to bet on the outcome of future events without having the administrative authorization required by law. The proceedings were notified through the Official State Gazette after attempts at direct notification to the operators were unsuccessful, and the procedure could extend between three and four months until its final resolution.
In its statement, the DGOJ explained that prediction markets allow users to buy and sell positions on the probability of a future event, a phenomenon also known as exchange betting. Although the platform acts as an intermediary and not as a traditional operator, the Spanish regulator considers them gambling whenever the outcome depends on uncertain facts, a criterion aligned with several European jurisdictions.
The body also stressed that unauthorized operators lack the technical guarantees required by Spanish legislation, including identity verification systems, access controls for self-excluded persons or minors, and minimum standards of supervision and player protection. The next steps in the procedure will include the resolution of the file and, if the infringements are confirmed, possible significant economic sanctions.
The decision has immediate implications for Latin America. Polymarket and Kalshi operate with growing appetite in the region, while Brazil, through the National Monetary Council, has just approved Resolution 5.298 to frame this type of platform, and other regulators such as Coljuegos in Colombia or LOTBA in the City of Buenos Aires are monitoring their progress. Spain's coordinated action, coupled with measures announced days ago by European regulators, reinforces a global trend towards framing predictive markets as regulated gambling and makes it clear that Latin American frameworks will also have to decide whether to integrate them as a new licensing vertical or push them into the illegal circuit.
Tags: Spain, DGOJ Spain, prediction markets, Polymarket, Kalshi, online gambling regulation Spain