Spain’s Dirección General de Ordenación del Juego (DGOJ) has opened sanctioning proceedings against Polymarket and Kalshi. According to the regulator, these platforms may have offered prediction-market services without gambling authorization in Spain. The block will remain in place until the sanctioning proceedings are resolved.
DGOJ Treats Event Trading as Gambling
DGOJ classifies prediction markets as gambling when users stake money on uncertain future outcomes. In such cases, the platform has to have authorization from a certain administrative body.
The two companies, Polymarket and Kalshi, enable users to trade outcomes related to future events in politics, sports, economic indicators, and weather conditions. Typically, the prices on these platforms are offered in the form of market probabilities.
Consumer Safeguards Drive the Case
The regulator also highlighted the issue of player protection. DGOJ stated that unauthorised operators do not guarantee the necessary measures both technical and legal in Spain. These measures include the verification of users’ identity, checking their age and providing means to block people who have self-excluded or are barred from gambling.
The notices of sanctions against the operators were issued via the official Spanish state bulletin since attempts to notify them directly failed. Authorities said earlier direct notification attempts at the operators’ known foreign addresses were unsuccessful.
The Spanish case presents several options for both Polymarket and Kalshi. They may seek to obtain authorization within Spain, contest the classification of their services as gambling, or alter access and product conditions for Spanish users.
Europe Still Has No Single Prediction-Market Rule
The case also reflects the wider European debate over how prediction markets should be treated. Prediction-market operations are situated somewhere between gambling, trading, and forecasting. Regulatory authorities have not agreed yet on how to proceed.
While some nations are leaning toward either prohibition or enforcement, others are looking at a licensing system or another form of regulation. That becomes a complex landscape for cross-border businesses.
Market Significance
For the sector, the next few months will show how far national regulators are ready to go. If Spain confirms the sanctions, prediction-market platforms may face a clearer choice in Europe: seek gambling authorisation, limit access, or keep fighting the legal label attached to their products.
