Spain has initiated the blocking of Polymarket and Kalshi, citing that these prediction market platforms may be operating unlawfully without the necessary gambling authorization. Under Spanish law, the Ministry of Social Rights, Consumer Affairs and Agenda 2030 is taking action after determining that these platforms allow users to place bets on potential future events—a practice that could breach national gambling regulations. The Directorate General for Gambling Regulation, known as DGOJ, has issued a precautionary blocking order until an investigation clarifies their compliance with local laws.
The announcement regarding these sanction proceedings appeared in Spain’s Official State Gazette after attempts to directly reach the companies at their foreign addresses failed. The ministry anticipates that the resolution of this matter will take around three to four months.
Are prediction markets classified as gambling in Spain? Spanish regulators view prediction markets in this light because users wager on uncertain future outcomes. These platforms enable trading on results of various events, such as elections, economic indicators, sports, and more, with their prices reflecting market expectations for those outcomes.
The DGOJ expressed concerns about unauthorized operators, stating that they do not comply with critical technical and regulatory requirements established in Spain. These include essential measures such as identity verification, mechanisms preventing access for minors and self-excluded individuals, and necessary oversight standards meant to ensure user protection.
Spain’s decision to block these platforms aligns with a broader trend of regulatory scrutiny faced by prediction markets worldwide. Earlier this year, Brazil had blocked 27 similar platforms due to a decision by the National Monetary Council to prohibit derivatives linked to various events including sports and politics. Argentina and Indonesia have also taken steps against Polymarket over concerns of illegal gambling under their respective jurisdictions.
India has experienced similar actions, with Polymarket being blocked following government directives. Kalshi also faces an order as these authorities categorize prediction markets as forms of prohibited online gambling.