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Home » Spain Blocks Polymarket and Kalshi Over Licensing
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Spain Blocks Polymarket and Kalshi Over Licensing

May 26, 2026No Comments4 Mins Read
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DGOJ-pledges-an-almost-E1m-research-fund-to-study-gambling-related-harm-coverSpain’s gambling regulator has opened sanction proceedings against two international prediction market operators, Polymarket and Kalshi, while also moving ahead with a separate initiative aimed at expanding research into gambling-related harm.

The actions were announced by the Dirección General de Ordenación del Juego (DGOJ), which operates under Spain’s Ministry of Social Rights, Consumer Affairs and Agenda 2030. Authorities stated that both platforms were allegedly offering services in Spain without holding the administrative authorization required under national gambling laws.

According to the regulator, Spain classifies prediction markets as gambling activities when users place stakes on uncertain future outcomes. Because of that classification, operators must secure a gambling licence before offering services within the country.

The ministry also confirmed that access to both platforms would be blocked across Spain while the administrative proceedings continue. The precautionary measure was published in the Boletín Oficial del Estado (BOE), Spain’s official state bulletin, which detailed the government’s decision to restrict access pending a final resolution of the case.

DGOJ Says Operators Lacked Required Authorization

The DGOJ stated that unlicensed operators fail to meet Spain’s technical and regulatory standards, including identity verification systems and safeguards designed to prevent minors and self-excluded individuals from gambling.

Authorities also noted that attempts to formally notify the operators at their foreign business addresses were unsuccessful. As a result, the notification process moved forward through publication in the BOE, following Spain’s administrative procedures. The regulator expects the proceedings to last between three and four months before a final decision is reached.

Spanish authorities explained that prediction markets function differently from traditional betting models because users trade positions with one another inside a marketplace. Platforms typically act as intermediaries while charging commissions on transactions. These markets can involve forecasts related to elections, sports, economic indicators, or weather events.

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The action against Polymarket and Kalshi follows broader regulatory discussions taking place in Spain’s gambling sector. Earlier in May, the DGOJ launched a public consultation concerning possible amendments to the Gambling Regulation Act. Proposed changes include tighter restrictions on gambling advertising involving celebrities and influencers.

Under the proposals, gambling advertisements would only be shown when users actively search for betting brands online. Spain has already imposed major advertising restrictions in recent years through the Royal Decree introduced in 2020, which prohibited gambling sponsorship agreements and heavily limited television and radio advertising hours.

Several parts of that decree, including limits on the use of public figures in promotions, were overturned in April 2024.

Research published last summer indicated that new online gambling account registrations in Spain fell sharply after those advertising restrictions took effect. Figures showed that 1.35 million new online gambling accounts were opened in 2023, compared with 3.01 million in 2020.

Nearly €1m Allocated for Gambling Harm Research

Alongside the enforcement action, Spain’s Ministry of Social Rights, Consumer Affairs and Agenda 2030 also announced a competitive research grant programme focused on gambling-related harm.

The initiative carries a total budget of €950,620 and will support studies connected to gambling prevention, behavioural risks, and the social impact of gambling activities. The programme was published in the BOE through an official government order dated 18 May 2026.

The grants will be administered by the DGOJ, with applications open to universities, health institutions, non-profit entities, and research centres that can demonstrate established work related to gambling studies. The official BOE publication stated that funded projects must begin no earlier than 1 January 2026 and conclude by 30 June 2027.

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Research proposals must focus on one of six priority areas. These include early detection of risky gambling behaviour, social and financial harm associated with gambling, tools to reduce gambling-related damage, links between video gaming and gambling products, structural features of betting and lottery systems, and gender-related impacts connected to problematic gambling behaviour.

The DGOJ has increasingly focused its regulatory agenda on gambling harm, particularly concerning younger users and the overlap between gaming and gambling mechanics such as loot boxes and social casino products.

In March, the regulator introduced its Safe Gambling Programme for 2026-2030, which highlighted concerns about gambling-style mechanics appearing in video games and their possible influence on minors and young adults.

Spanish authorities have also stressed the need for gender-sensitive research approaches, arguing that gambling-related harm can affect demographic groups differently and may require tailored prevention measures.

Source:

“Consumo abre expediente sancionador y ordena cautelarmente el bloqueo de Polymarket y Kalshi, dos plataformas de mercados de predicción”, dsca.gob.es, May 25, 2026.

Blocks Kalshi Licensing Polymarket Spain
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