Spain's gambling regulator has officially classified real-money prediction markets as gambling under the country's Gambling Act, effectively blocking platforms like Polymarket and Kalshi from serving Spanish residents. Operators now need a license from the DGOJ (Dirección General de Ordenación del Juego) or risk domain blocks, payment freezes, and advertising bans. The decision hits both crypto-native and US-regulated platforms the same way.
How the classification works
The DGOJ enforcement toolkit includes ISP and DNS-level blocks, payment disruption, and sanctions. That's not theoretical — platforms often geofence Spanish users to avoid running afoul of the law. The ruling covers both on-chain prediction markets (smart contracts and oracles) and off-chain centralized exchanges that do their own compliance checks. A license from another country's regulator — say, the US CFTC for Kalshi — doesn't count in Spain. The EU's MiCA regulation governs crypto-assets, but it doesn't override Spain's gambling classification for prediction markets.
What users face
Spanish residents who try to access blocked sites face legal risk. On decentralized venues, there's also a real chance of losing funds if something goes wrong — no one to call. Winnings from unlicensed platforms are subject to Spanish tax obligations. Some users might consider a VPN or an alternative domain to get around the blocks, but that raises its own legal issues and often violates the platform's terms of service. The DGOJ hasn't minced words about enforcement.
Alternatives — if any
For those looking to bet on outcomes, the options are limited. Licensed sportsbooks are allowed where authorized, but they're not the same as political or event-based prediction markets. Play-money or academic prediction markets exist but don't involve real stakes. Traditional hedges aren't a direct substitute. The bottom line: real-money prediction markets are off the table in Spain for now, unless a platform secures a DGOJ license. None has done so yet.
Neither Polymarket nor Kalshi has signaled plans to apply for a Spanish license. The DGOJ's stance looks firm, and there's no pending legislation to reclassify prediction markets. For now, Spanish residents are stuck with sportsbooks or play-money platforms — or they can wait and see if any operator decides the cost of compliance is worth the access.
