Spain Keeps Local Licensing Requirement for Prediction Markets

Spain's gambling regulator DGOJ has reiterated that prediction market operators must obtain a local license if their products fall within the definition of betting. Director General Mikel Arana said at a speech at the MERGE Madrid 2026 event on 30 October that the legal status depends on how the product works.

According to DGOJ, betting activities under Law 13/2011 cannot be offered to Spanish customers without authorization, and access to unauthorized services will continue to be restricted. There is no separate license category for prediction markets. The regulator assesses each platform's products against the definition of betting under Spanish law. The legislation also covers cross-betting, where an operator mediates bets between third parties.

DGOJ started a process concerning Polymarket and Kalshi in May and, as a precaution, decided to block their sites. The ministry had expected the process to take three to four months. However, the 30 October statement contained no update on the process and no final decision.

Similar steps are being taken in Europe. Italy has blocked Polymarket, while France asked the company, through its regulator, to block access for French users. Malta is developing specific rules for prediction markets, and Gibraltar is trying to attract operators in this sector. Kalshi announced that it had raised 1 billion dollars and reached a valuation of 40 billion dollars. The company also partnered with S&P Dow Jones to develop indices that track event contracts.

According to reports, Kalshi and Polymarket have also held talks with the London Stock Exchange and Euronext to have prediction markets recognized within financial services. Data and index licenses could offer a way into international markets, but permission to offer trading is a separate regulatory matter.