Spain halts Kalshi and Polymarket operation under regulatory review

(AsiaGameHub) –   Spain’s gambling regulatory body is set to investigate whether prediction platforms are violating the nation’s laws.

Spain.- Kalshi and Polymarket are at risk of losing access to yet another market. Spain’s Ministry of Social Rights, Consumer Affairs and Agenda 2030 has issued a temporary ban on the prediction platforms while a regulatory probe is underway. 

According to a Tuesday publication in the state gazette, Spain’s gambling regulator, the DGOJ, will examine if the platforms violated national legislation by failing to obtain gambling licenses that allow them to offer betting services. The suspension is expected to remain in effect throughout the investigation, which the DGOJ estimates will last three to four months. This means the ban will cover the entire duration of the FIFA World Cup, which begins next month.

Prediction markets have grown particularly popular in the U.S., where traditional betting operators are limited to sports (rather than politics or other fields) and several states still lack regulated sports betting. The platforms do not act as bookmakers themselves but facilitate betting by letting participants trade contracts tied to future events, with prices shifting to reflect perceived probabilities. 

Spanish authorities, aligning with most other European regulators, classify this as a gambling service since wagers are placed on uncertain outcomes. Companies like Kalshi and Polymarket often argue that they offer a financial product, though they have also used language linked to gambling and betting in their marketing materials. 

Gibraltar recently became the first European territory to license a prediction platform, granting Predict Street a gambling license under existing regulations. 

The DGOJ noted that unlicensed operators do not meet Spain’s technical and regulatory standards, which include identity checks, safeguards for minors and self-excluded individuals, and systems designed to protect consumers.

This move follows the DGOJ’s launch of a public consultation last week on proposals to amend Spain’s Gambling Regulation Act. The reforms put forward aim to strengthen controls, improve prevention measures, and provide more tools to combat illegal gambling. 

The updates include measures to address the regulation of celebrities or influencers in gambling advertising—an issue the ministry previously sought to tackle via royal decree. The amendments also cover customer acquisition promotions and organic search engine advertising, with the goal of ensuring that gambling operators’ advertising pages only appear if the searches are directly related to betting. The consultation will remain open until June 22.