DGOJ opens sanction files against Polymarket and Kalshi over prediction markets

Spain's DGOJ opened sanction proceedings against Polymarket and Kalshi on 26 May and ordered a precautionary block of their websites, according to a report. The regulator said the platforms were allegedly operating without the necessary administrative authorisation. The DGOJ considers that when users risk money on uncertain future events, the activity is gambling subject to Spanish law.

Jdigital backed the block, describing it as a necessary measure to protect players and to ensure that companies competing in Spain do so under the same rules.

The DGOJ took part in a meeting in Rome in May with regulators from Germany, Austria, France, Italy, Portugal and the United Kingdom, where prediction markets were a central part of the discussion. The World Lottery Association has argued that platforms offering these products without a local gambling licence operate illegally in jurisdictions where the activity falls within betting.

Kalshi argues in the United States that its contracts are products traded on a market regulated by the Commodity Futures Trading Commission. Some US states consider that when such contracts concern who will win a match or a sports competition, they are bets. The NFL has asked the US Supreme Court to rule on who should regulate these products.

FIFA incorporated an official prediction markets partner for the first time in April, through a multi-year agreement with ADI PredictStreet, linked to Predict Street Ltd, a company licensed in Gibraltar. The partnership placed these products around the FIFA World Cup 2026, with markets related to matches, statistics, players and other events in the competition. Gibraltar granted its first licence to a regulated prediction markets operator.

ADI PredictStreet is again in focus after an investigation questioned a substantial part of the volume recorded on its platform. According to the analysis, of about $167m in trades, around $108m showed patterns of circular trading between related accounts.

Matchbook has bought Betdaq, one of the established betting exchange platforms. A betting exchange differs from a traditional bookmaker: players bet against each other and the platform charges a commission for connecting them. Matchbook also participates technologically in the development of ADI PredictStreet's markets. The report said the Betdaq purchase has no connection to the investigation into PredictStreet.

The Malta Gaming Authority extended the B2B licence of HGMT Limited, a Hacksaw company, adding Type 3 services that allow it to deploy a peer-to-peer prediction markets platform for operators. In May, Slotegrator presented Predictor, a solution intended to integrate prediction markets within casino and sports betting platforms.

At a corporate social responsibility and responsible gambling working breakfast held at Casino Gran Vía COMAR, Iván García said the phenomenon should not be analysed only by asking whether Polymarket or Kalshi will one day be able to operate in Spain. He said the real question was what changes they are already introducing in the product, the user and the regulated industry itself.