Spain has opened sanctioning proceedings against prediction market operators Polymarket and Kalshi and ordered their websites blocked nationwide, escalating regulatory pressure on event-driven trading platforms operating without local authorization.
Spain Opens Proceedings and Orders Access Blocked
Spain’s Directorate General for the Regulation of Gambling (Dirección General de Ordenación del Juego, DGOJ) has initiated formal actions against both platforms for allegedly offering gambling services without a Spanish license. As part of the measures, Spanish internet service providers have been instructed to restrict access to the operators’ websites across the country.
The DGOJ enforces Spain’s online gambling framework, which requires operators to obtain a local license and comply with consumer protection, responsible gambling, and anti-money laundering rules. When platforms operate without authorization, the regulator can initiate sanctioning proceedings and order ISP-level blocks to protect Spanish users.
About Polymarket and Kalshi
Polymarket is a crypto-based prediction market platform where users trade on the outcomes of real-world events, with markets typically settled based on verified results. The platform has previously faced regulatory scrutiny in the United States and has implemented geofencing for certain jurisdictions.
Kalshi is a U.S.-regulated event-contracts exchange that lists tradable contracts tied to measurable outcomes. While it operates under U.S. derivatives oversight, it does not hold a Spanish gambling license, making its services off-limits to local users under Spain’s rules.
Regulatory Context and Market Impact
Spain treats most event-driven trading offered to the general public as gambling unless operators are expressly authorized. That puts prediction markets in a regulatory gray area that differs by jurisdiction: in the EU, crypto and digital asset activities fall under frameworks like MiCA, but event wagering is typically governed separately under national gambling laws.
The DGOJ’s action underscores growing cross-border compliance expectations for prediction market operators. Platforms serving European users increasingly face requirements to geoblock certain countries or seek country-specific approvals. For users in Spain, the immediate impact is loss of direct access to the affected sites while proceedings are underway, with potential fines or further restrictions possible if violations are confirmed.
What Comes Next
The DGOJ’s proceedings can lead to administrative sanctions, including monetary penalties and continued access blocks. Operators typically have the opportunity to respond or appeal. Market participants should expect tighter geofencing and ongoing jurisdiction-by-jurisdiction assessments as regulators clarify how event-based trading fits within local gambling and financial laws.