Spain Takes Legal Action Against Polymarket and Kalshi, Adding to European Opposition

(AsiaGameHub) –   Spain’s gambling regulator, the La Dirección General de Ordenación del Juego (DGOJ), is the most recent European authority to initiate disciplinary action against the prediction market firms Polymarket and Kalshi.

The DGOJ has charged both operators with running their services in Spain without the necessary gambling licenses.

Through a notice in Spain’s Official State Gazette (BOE), the regulator confirmed it has mandated the precautionary blocking of the two websites in the country for the duration of the proceedings.

The DGOJ stated that prediction markets are covered by Spain’s gambling laws, as they allow users to bet on future outcomes. This requires operators to possess a specific administrative authorization to offer such products legally.

The regulator emphasized that platforms without a license fail to meet Spanish regulatory protections, which include identity checks, measures to block access from minors and self-excluded individuals, and general consumer safety standards.

Spanish officials reported that efforts to contact Polymarket and Kalshi directly at their foreign addresses failed, prompting the legal move. The disciplinary procedure is anticipated to last three to four months before a ruling is made.

Spain emerges as the newest adversary for Polymarket and Kalshi

Spain’s recent prohibition extends the severe, industry-wide examination of prediction markets by European regulators, focusing especially on leading platforms Polymarket and Kalshi.

Jurisdictions that have taken measures against prediction markets encompass:

• Romania
• Germany
• Belgium
• Italy
• Poland
• Hungary
• The Netherlands
• Switzerland
• France
• Portugal

Gibraltar stands as an exception, however. It is the sole jurisdiction to date that has licensed ADI Predictstreet, the FIFA World Cup’s official prediction market partner, as a betting intermediary.

Criticism of these platforms has reached beyond Europe. Just yesterday, Indonesian authorities blocked Polymarket after it accepted wagers—or “events contracts”—on an early end to Prabowo Subianto‘s presidency, scheduled for 2029.

Concerns were also voiced in Australia this weekend about Polymarket and Kalshi due to bets on political events there. Experts noted that even though the platforms are banned, users could circumvent restrictions using VPNs.

In the United States, prediction markets are overseen by the Commodity Futures Trading Commission (CFTC), classifying them as derivatives markets rather than gambling operations.

Yet the situation is not entirely favorable there either, with states including Arizona, Nevada, and Rhode Island expressing objections to Polymarket and Kalshi. Both sites are also prohibited in Brazil.

Major gambling companies like MGM and Flutter Entertainment have referenced prediction market platforms in discussions with investors, stating their rapid rise has been extraordinary and has eroded the market share of conventional gambling businesses.

Consequently, several leading operators have introduced their own prediction-based products to maintain a competitive edge.

Nevertheless, a growing number of regions appear to be tightening restrictions on these activities. Even as these prediction companies achieve valuations in the billions, a strategic shift might be required to pursue substantial global expansion—legally, at least.