TITLE: Spain's Ministry of Social Rights Opens Enforcement Cases Against Polymarket and Kalshi Prediction Platforms
BODY:
On May 26, 2026, Spain's Ministry of Social Rights, Consumption and 2030 Agenda opened enforcement proceedings against Polymarket and Kalshi, two prediction market platforms offering betting services. The Ministry alleged that both platforms are operating in Spain without the required administrative authorisation, thereby breaching gaming regulations.
The General Directorate of Gaming Regulation (Dirección General de Ordenación del Juego) is leading the enforcement action. Alongside the proceedings, the Ministry issued an order to block both platforms' websites in Spain as a precautionary measure pending the final resolution of the cases. The enforcement notice was published in the Official State Gazette (Boletín Oficial del Estado) after direct notification attempts to the operators' known foreign addresses proved unsuccessful.
Prediction markets are platforms where users buy and sell stakes on the outcomes of future events, with prices reflecting the probability of different results. They are also known as cross-betting. Unlike traditional betting, these platforms allow users to trade directly with each other, with the operator acting as an intermediary, facilitating transactions and collecting commissions. Prediction markets estimate probabilities across diverse events including elections, economic indicators, sports results, and weather phenomena.
Spain's gaming regulator considers prediction markets to constitute games of chance when users bet on uncertain future outcomes. Consequently, operating such markets in Spanish territory requires obtaining a specific administrative gaming licence. The regulator warned that unauthorised operators lack the technical and regulatory safeguards mandated in Spain, including identity verification systems, age verification controls, mechanisms for excluding self-excluded or prohibited players, and necessary supervisory standards for user protection.
The enforcement proceedings are estimated to conclude within three to four months.