Spain’s gambling regulator has reiterated that prediction market platforms must obtain a domestic license if their products qualify as gambling under Spanish law.
Mikel Arana, director general of the Dirección General de Ordenación del Juego (DGOJ), outlined the position during MERGE Madrid 2026, a conference focused on cryptocurrencies, blockchain and Web3.
The statement follows regulatory action against Polymarket and Kalshi earlier this year, when Spanish authorities opened sanctioning proceedings and ordered both platforms’ websites blocked.
According to the DGOJ, prediction markets must comply with Spain’s existing gambling legislation when their services meet the legal definition of gambling.
Under Law 13/2011, operators offering regulated gambling activities must obtain authorization before serving customers in Spain.
This requirement can apply to prediction markets that allow users to stake money on uncertain future events, including sports results, elections and economic developments.
Unlike traditional sportsbooks, prediction market platforms generally allow participants to trade positions against one another, with the platform facilitating transactions and collecting fees.
Spanish authorities have previously described this arrangement as cross betting, a form of gambling already recognized under the country’s regulatory framework.
The DGOJ emphasized that the legal classification depends on the products offered, rather than whether a company describes itself as a prediction market or financial trading platform.
As a result, operators whose products qualify as gambling cannot legally serve Spanish customers without the appropriate license.
The regulator also confirmed that it continues taking measures to restrict access to unauthorized gambling services.
The latest statement follows enforcement action against prediction market operators Polymarket and Kalshi.
On May 26, 2026, Spain’s Ministry of Social Rights, Consumer Affairs and Agenda 2030 announced sanctioning proceedings against both companies over suspected violations of gambling regulations.
The ministry alleged that the platforms had offered betting-related services in Spain without the required authorization.
It also ordered their websites blocked as a precautionary measure while the proceedings continued.
At the time, authorities estimated that the process could take three to four months.
The DGOJ’s latest announcement did not provide a detailed update on either company’s case or identify any final penalties.
A subsequent public notice concerning Kalshi reportedly referenced a sanctioning resolution, although the available information does not establish its contents or whether it is final.
The regulator’s original enforcement announcement also highlighted consumer protection concerns, including identity verification, restrictions on underage gambling and safeguards for self-excluded players.
According to the DGOJ, unauthorized operators do not necessarily provide the protections required of licensed Spanish gambling businesses.
Spain’s position reflects a wider regulatory debate over whether prediction market contracts should be treated as gambling products, financial instruments or a separate category.
Several European jurisdictions have taken different approaches.
France’s gambling regulator previously intervened to restrict access to Polymarket, while Italian authorities have also taken action against the platform.
Gibraltar introduced a dedicated regulatory framework for prediction markets in July 2026, creating a separate authorization mechanism for businesses operating in or from the territory.
Malta has also been exploring regulatory arrangements for the sector.
These differences present challenges for prediction market operators seeking to expand internationally.
A platform permitted to offer event contracts in one jurisdiction may still require a gambling license or face restrictions in another.
The regulatory treatment of individual products can also vary depending on their structure, the events involved and the applicable national legislation.
The DGOJ’s latest statement does not introduce new licensing rules or announce a separate regulatory framework for prediction markets.
Instead, it reinforces the regulator’s existing interpretation of Spanish gambling law.
For companies such as Polymarket and Kalshi, the distinction matters because offering event contracts as financial products elsewhere does not automatically exempt those services from Spain’s gambling requirements.
Operators seeking to enter the Spanish market must therefore assess whether their products fall within the country’s gambling legislation and, where applicable, obtain the necessary authorization.
The DGOJ has not announced plans to introduce a dedicated prediction market license.
For now, Spain’s position remains focused on applying existing gambling regulations to products that meet the relevant legal criteria, while the broader debate over prediction market classification continues across Europe.
Vladimir is a senior iGaming writer and editor, adept at breaking down the key details of crypto casinos and sportsbooks so players don’t have to, delivering honest, player-focused information that actually matters.
