Spain Blocks Polymarket and Kalshi Over Licensing Dispute

Spain Orders Temporary Block of Polymarket and Kalshi – Regulator Launches Formal Investigation Into Unlicensed Operations

Key Takeaways

• Spain’s gambling regulator DGOJ has ordered a temporary block of Polymarket and Kalshi.
• The measure will remain in place for three to four months while formal sanctioning procedures are conducted.
• The regulator states both platforms offered services in Spain without the required administrative licences.
• DGOJ classifies prediction markets as gambling when users place bets on uncertain future outcomes.
• Several European countries have already blocked Polymarket, while others are exploring regulatory frameworks.

DGOJ Initiates Formal Proceedings Against Polymarket and Kalshi

Spain’s Dirección General de Ordenación del Juego, known as the DGOJ, has imposed a temporary block on the prediction market platforms Polymarket and Kalshi. The regulator announced that both operators were offering services within Spain without holding the mandatory administrative licences required under national gambling law.

The decision has been formally published in the Boletín Oficial del Estado. According to the regulator, the block serves as a precautionary measure while sanctioning procedures are carried out. A definitive ruling is expected within three to four months.

The DGOJ operates under the Ministry for Social Rights, Consumer Affairs and Agenda 2030. Its mandate includes supervising and enforcing compliance with Spain’s gambling framework. By initiating formal proceedings, the authority is assessing whether the activities of the two platforms fall under Spain’s regulated gambling sector and whether sanctions should be imposed.

Why Spain Classifies Prediction Markets as Gambling

In its public statement, the DGOJ described prediction markets as a form of gambling because they involve placing bets on uncertain future outcomes. Under Spanish law, any operator offering gambling services must obtain a specific administrative licence before targeting consumers in the country.

The regulator’s position means that platforms facilitating event based contracts or outcome based markets are treated in the same way as traditional betting operators if they allow users to stake funds on future events.

For users in Spain, this classification determines whether a platform can legally offer its services. Operators that do not hold the required authorisation may be subject to blocking measures and potential sanctions.

Consumer Protection Concerns Cited by the Regulator

The DGOJ also highlighted several consumer protection deficiencies it says are present on unauthorised platforms. These include the absence of effective identity verification systems and insufficient controls to prevent access by minors or individuals who have self excluded from gambling activities.

According to the regulator, there were also shortcomings in supervision standards. Consumer protection measures such as age verification, responsible gambling controls and monitoring mechanisms are core requirements for licensed operators in Spain.

Before publishing the sanctions notices, the DGOJ attempted to notify Polymarket and Kalshi at known foreign addresses. These attempts were unsuccessful, according to the authority. The temporary block was implemented after these efforts did not result in formal contact.

Next Steps for the Platforms

Once the formal proceedings conclude, several outcomes are possible under the framework described by the regulator. Following a final decision, the operators may seek to obtain the appropriate licences to operate legally in Spain. They could also challenge the regulatory classification or adjust their service offerings to comply with local requirements.

The current measure remains temporary. However, during the three to four month review period, access to the platforms in Spain will be restricted as part of the enforcement action.

For users who access prediction markets through crypto based platforms, regulatory classification directly affects availability. If a service is treated as gambling in a given jurisdiction, it must comply with the same licensing and consumer protection obligations as sportsbooks or online casinos.

Broader European Approach to Prediction Markets

Spain is not the first European country to restrict access to prediction market platforms. Polymarket was banned by France in 2024 after authorities indicated that the type of gambling offered by the website was likely in breach of French law.

Other European countries that have blocked Polymarket include Germany, Belgium, Portugal, Switzerland, Romania, the Netherlands and Poland. These actions reflect a broader regulatory debate across the region.

At the same time, some jurisdictions are moving toward formal regulatory consideration rather than outright bans. Malta’s Economy Minister Silvio Schembri stated in March that the country is actively exploring the emerging field of prediction markets with a view toward potential regulation. Gibraltar licensed its first prediction market operator earlier this year.

This divergence highlights an ongoing debate among European regulators. Some authorities apply gambling legislation to platforms that allow bets on uncertain future events. Others examine whether such services should fall under financial securities or commodities regulation, particularly when platforms position themselves as forecasting tools or financial products.

Implications for International Crypto and Betting Users

For international users of crypto based betting and prediction platforms, regulatory treatment can vary significantly depending on jurisdiction. In Spain, the DGOJ’s position is clear: if a platform allows users to place bets on future outcomes, it is considered gambling and requires a specific licence.

This approach affects not only operators but also users who rely on cross border access to digital platforms. Temporary or permanent blocks can limit availability, and compliance obligations may differ from one country to another.

As European regulators continue to assess how to classify prediction markets, further enforcement actions or regulatory initiatives may follow in different jurisdictions.

Our Assessment

Spain’s decision to temporarily block Polymarket and Kalshi marks a formal enforcement step under national gambling law. The DGOJ has stated that offering prediction market services without an administrative licence constitutes unauthorised gambling activity. The outcome of the ongoing proceedings will determine whether the platforms can operate in Spain through licensing, legal challenge or service adjustments. The case also reflects wider regulatory differences across Europe regarding the classification and supervision of prediction markets.