Spain has launched a regulatory investigation into prediction market operators Polymarket and Kalshi, banning both companies from operating in the country over allegations they breached gambling licensing rules.
The Ministry of Social Rights, Consumer Affairs and 2030 Agenda is blocking access to the sites, claiming both companies lack the “necessary administrative authorisation” to operate in Spain.
Sites restricted until investigation is concluded, authorities say
Illegal gambling has been a priority for Spanish lawmakers ever since a report came out at the back end of 2025, which suggests nearly a quarter of gamblers are wagering with illicit sites.
The report, by Spanish Association of Digital Gaming Jdigital and global professional services firm EY, found a growing number of gamblers were using unlicensed betting platforms despite the country’s decade-old regulatory framework. The study added 9.3% were knowingly betting on unlicensed sites.
In a statement, the Spanish government said: “The process of reaching a final decision is expected to take between three and four months.” They added: “In Spain, in line with other European jurisdictions, prediction markets are considered gambling when bets are placed on uncertain future outcomes. Therefore, operating them in Spain requires obtaining a specific administrative licence.”
A spokesperson for Polymarket remarked: “We welcome the opportunity to collaborate with Spain on a path forward that supports responsible innovation, transparency and user protection in prediction markets.”
The move comes just days after Indonesia blocked access to Polymarket as part of a large swathe of online gambling measures, with authorities classifying prediction markets as wagering activity. Regulators also moved to target related social media promotion as the country expands enforcement against gambling websites, payments and digital content.
Polymarket partnership with La Liga remains unchanged
Despite the government ban, the partnership between La Liga and Polymarket is likely to remain unchanged. At least for now.
Last month, the two agreed a multi-year partnership, marking the first such deal between a European football league and a prediction markets operator. The agreement covers the United States and Canada and gives Polymarket broadcast visibility during matches along with access to league digital content and fan experiences.
Under the deal, Polymarket will be allowed to use La Liga and club intellectual property tied to league matches. The company said the partnership is aimed at giving fans more interactive ways to engage with games and season outcomes in real time.
The agreement also includes cooperation on sports integrity initiatives through Polymarket’s recently launched integrity platform. La Liga and its commercial partner Relevent said the deal is intended to strengthen engagement with younger and multicultural audiences in North America, where soccer’s popularity has been growing rapidly.
The partnership expands Polymarket’s footprint in sports after previous deals involving MLB, NHL, UFC and Major League Soccer.
Gibraltar to embrace prediction markets
On Spain’s southern tip, the British Overseas Territory of Gibraltar is taking a more opportunistic view of prediction markets. Nigel Feetham, the Minister for Justice, Trade and Industry, said in an interview with Gambling Insider this week that the sector represents a major opportunity for the tiny territory.
While enthusiastic over the prospect of becoming a haven for the prediction market sector, he was keen to emphasise his government’s stance on approaching the issue delicately. He said: “We’ve been very careful to do this, not just in gaming, but we’ve done it in other sectors as well. We would rather have quality over numbers. So we don’t believe in issuing licences and making up numbers by allowing just anyone to come to Gibraltar and be licenced in Gibraltar.
“All the major gaming companies in the world are based in Gibraltar. It’s a huge ecosystem. The fact that you’re regulated and licensed in Gibraltar gives you the credibility, and also in many cases, it gives you access either to a market or indeed to the possibility of getting a license based on the fact that you’ve got a Gibraltar license, which is the gold standard for most other jurisdictions.
“I’ve got a vision. I know I’m not making a mistake. We will be selective, and we will grow this in a responsible manner, in the same way as we’ve done it in other areas.”
Gibraltar has already taken steps in embracing the sector. ADI Predictstreet, an Abu Dhabi-backed prediction market startup FIFA recently named an official partner for the 2026 World Cup, has already been established in the country.
The company says it operates on a blockchain-based network aimed at governments and enterprises across the Middle East, Asia and Africa. Critics have questioned its credibility and global reach because it only holds a recent gambling licence in Gibraltar. But Feetham is hopeful Predictstreet is the first of many prediction market companies to set up shop on the rock.
