DGOJ imposes a block on Polymarket and Kalshi due to unauthorized operations

(AsiaGameHub) –   The Dirección General de Ordenación del Juego (DGOJ), Spain’s national gambling regulator, has issued an order for a temporary block on Polymarket and Kalshi. 

This temporary block is a precautionary measure as the regulator launches formal proceedings against the two international prediction-market platforms.

The DGOJ, which operates under the ministry for Social Rights, Consumer Affairs and Agenda 2030, announced Tuesday that both platforms were providing services within Spain despite not holding the mandatory administrative licences required by the country’s gambling regulations. 

The sanctioning procedures have been formally published in the Boletín Oficial del Estado, though it is expected that three to four months will pass before a final ruling is issued.

After the final decision is released, the operators may opt to pursue proper licensing in Spain, legally challenge their current classification, or adjust their service offerings to align with local regulations.

Consumer protection

In its official statement, the DGOJ classifies prediction markets as a form of gambling, because they involve “placing bets on uncertain future outcomes”. As a result, these operators must obtain a specific administrative licence to offer services legally in Spain. 

The regulator highlighted multiple consumer-protection gaps found on unauthorised platforms, including the lack of effective identity-verification systems, adequate controls to block access by minors and self-excluded individuals, and insufficient supervision standards.

Before the publication of the sanctions notices, the regulator’s attempts to notify Polymarket and Kalshi at their known foreign addresses were unsuccessful.

Europe continues to grapple with prediction markets

European regulators, including those in Spain, are still working through how to classify and regulate prediction markets. Rules differ across jurisdictions: some apply existing gambling laws, while others evaluate whether the platforms fall under financial securities or commodities regulations. 

Spain is not the first country to block prediction market sites, as Polymarket was already banned by France in 2024. French authorities claimed that the type of gambling offered by the website was “likely” in violation of French law. Polymarket is now blocked across 9 European nations, joining Germany, Belgium, Portugal, Switzerland, Romania, the Netherlands and Poland on the list.

On the opposite end of the regulatory approach, Gibraltar and Malta are focused on developing formal regulation for the sector. In March this year, Malta’s Economy Minister Silvio Schembri said the country was “actively exploring the emerging field of prediction markets” with the goal of creating potential formal regulation. 

Gibraltar issued its first licence to a prediction market operator earlier this year.

An ongoing debate continues between platforms that frame their services as forecast tools or financial products, and regulators that prioritize consumer protection and apply gambling legislation to bets on uncertain future events.