Spain Targets Polymarket and Kalshi Over Licensing

Spain's gambling regulator DGOJ launched disciplinary proceedings against Polymarket and Kalshi as of May 2026, accusing both prediction market operators of running unlicensed gambling services in the country, according to SBC News.

Why It Matters

Spain's move signals a coordinated tightening across European jurisdictions against crypto-native prediction markets. Operators and investors in Polymarket and Kalshi now face the prospect of blocked access, fines, or forced withdrawals of Spanish user funds. For bettors in Spain, the proceedings create immediate uncertainty about platform availability and account balances. Broader iGaming operators watching from the sidelines should treat this as a forward indicator: regulators are treating prediction markets as gambling products requiring standard licensing, not novel fintech tools exempt from oversight.

Context

Spain joins a growing list of European regulators that have moved against prediction markets operating without local licenses. Both Polymarket — a decentralised, crypto-based platform — and Kalshi — a U.S.-regulated derivatives exchange — have expanded aggressively into international markets where their regulatory status remains contested. The DGOJ's notice appeared in Spain's Official State Gazette (BOE), giving the action formal legal weight under Spanish gambling law.

What's Next

DGOJ will progress disciplinary proceedings that could result in fines and mandatory geo-blocking of both platforms for Spanish users. Polymarket and Kalshi will need to respond formally or risk escalating sanctions, including potential referrals to payment processors and ISPs to enforce access restrictions.

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