Spain's DGOJ Blocks Polymarket and Kalshi

Spain's Dirección General de Ordenación del Juego (DGOJ) has blocked Polymarket and Kalshi from operating in the country, citing unauthorised activity by both prediction market platforms.

Why It Matters

The temporary block — expected to run three to four months, per iGaming Business — signals that European regulators are actively closing the gap between prediction markets and licensed gambling frameworks. Both platforms have grown rapidly: Polymarket processed over $1 billion in monthly trading volume as of November 2024, according to Dune Analytics. For operators and investors watching cross-border expansion, Spain's action sets a clear precedent that regulatory arbitrage in prediction markets carries real enforcement risk. Users in Spain face immediate loss of access while the investigation proceeds. Gambling always involves financial risk, and operating without a licence compounds that risk for consumers and platforms alike.

Context

Prediction markets occupy a legal grey zone in most jurisdictions — they resemble financial derivatives but attract gambling regulation when payouts depend on event outcomes. The DGOJ governs all gambling activity in Spain and holds authority to issue temporary blocks pending formal investigation. Kalshi, based in the United States, received CFTC approval as a designated contract market in 2020 but holds no Spanish gambling licence; Polymarket, also US-based, previously settled with the CFTC in 2022 over unregistered binary-options offerings.

What's Next

The DGOJ's formal investigation is expected to conclude within three to four months, after which the regulator will determine whether to make the block permanent or impose other sanctions. Both platforms will likely need to pursue Spanish licensing or exit the market entirely if the ruling goes against them.