The Ministry of Social Rights, Consumer Affairs and the 2030 Agenda has recently launched disciplinary proceedings against the prediction and betting platforms Polymarket and Kalshi for a possible breach of Spanish gambling regulations, as they are alleged to be operating without the required administrative authorisation. As a precautionary measure, and pending a final decision, the Ministry has also ordered the blocking of their websites in Spain.
This investigation was announced through publication in the Boletín Oficial del Estado, after attempts to contact both companies directly at their known addresses abroad proved unsuccessful. The proceedings are expected to be resolved within an estimated period of three to four months.
This action, initiated by the Directorate General for the Regulation of Gambling (DGOJ, from its Spanish acronym), aims to ensure compliance with current legislation and to strengthen the protection of users against operators who carry out their activities outside the controls and safeguards established by Spanish regulations.
Prediction platforms under investigation
Polymarket and Kalshi are two prediction platforms, systems on which users buy and sell shares linked to the outcome of future events, such as elections, sporting events, economic indicators or weather phenomena.
As the DGOJ has clarified, these transactions “are also known as peer-to-peer betting and – unlike traditional betting – this type of platform allows users to trade with one another within a market, acting as an intermediary, facilitating transactions and charging commissions”.
As the DGOJ points out, this type of activity is classified as gambling in Spain when it involves betting on uncertain future outcomes. Consequently, its operation requires a specific administrative licence granted by the competent authorities.
Consumer and user protection
The Directorate-General for the Regulation of Gambling also warns that unauthorised operators lack the technical and regulatory safeguards required in Spain, such as identity verification systems, controls to prevent access by minors or individuals who have self-excluded or are subject to a gambling ban, as well as the necessary monitoring mechanisms to ensure the protection of users.
Source of information: Ministry of Social Rights, Consumer Affairs and the 2030 Agenda