'Operating without a licence in Spain': blocking order against Polymarket and Kalshi
Spain’s Ministry of Social Rights, Consumer Affairs and the 2030 Agenda has opened a sanctions procedure against two prediction platforms and ordered their websites blocked as a precautionary measure. The move, led by the DGOJ, Spain’s national gambling regulator, is based on existing gambling laws. The standoff between regulators and prediction markets appears to be ongoing.
Polymarket and Kalshi under preliminary investigation for alleged breach of Spanish gambling law
The General Directorate for the Regulation of Gambling (DGOJ), Spain’s public body that oversees online gambling and is chaired by Pablo Bustinduy, has launched sanctions proceedings against Polymarket and Kalshi for allegedly breaching Spanish gambling rules. Official information indicates that both platforms are offering services without the mandatory administrative licence required to operate in Spain.
Under Spanish law, any activity classified as gambling requires prior authorisation. The DGOJ considers prediction markets to fall into this category when users bet on uncertain future outcomes.
Consumer Affairs orders websites blocked while proceedings continue
Alongside the sanctions process, the administration has ordered both websites blocked. The measure is precautionary, not final, and will remain in place until the procedure is resolved.
The blocking seeks to prevent allegedly irregular activity while the case is investigated and to limit access to services operating from abroad without direct oversight by Spanish authorities.
Government initiates sanctions process following failed contact attempts
The proceedings were officially announced in the Official State Gazette (BOE) on Tuesday, 26 May 2026, after unsuccessful attempts to contact the companies directly at their known addresses outside Spain. Publication in the BOE ensures the legal validity of the notification under Spain’s administrative rules. The DGOJ will examine the evidence over the next three to four months and determine whether to impose a sanction.
Prediction markets: betting or trading?
Polymarket and Kalshi are prediction markets where users buy and sell stakes on future events. The prices reflect how likely people perceived each outcome to be.
Unlike regular betting, users trade with each other, and the platform just acts as the middleman. It handles the transactions and makes money from commissions. These markets cover elections, international conflicts, sports and weather.
Authorities flag risks of unlicensed platforms
The DGOJ emphasises the main risks associated with using unauthorised platforms, particularly the lack of identity verification and limited safeguards to prevent minors or individuals prohibited from gambling from accessing these services.
The regulator also warns that these operators do not meet Spain’s supervisory standards, which directly affects user protection. According to the DGOJ, unauthorised operators “lack the technical and regulatory guarantees required in Spain, including identity verification systems, access control mechanisms for minors and for self-excluded persons or those prohibited from gambling, or the supervisory standards necessary to protect users”.
The investigation remains open to clarify what happened, assign responsibility among the operators involved, and ensure compliance with Spain’s online gambling rules.
This article was first published in Spanish on 26 May 2026.
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