sanctioning file and blocked website

The Ministry of Consumer Affairs has ordered the blocking of the Polymarket and Kalshi websitesthe two main prediction platforms, and has opened a disciplinary file for operating without the necessary administrative license. The sophistication of the gambling carried out by these platformswho dress the game with an aura of finance or tradinghas not convinced the authorities. The disguise, revealed The Ministry of Social Rights, Consumption and Agenda 2030, directed by Pablo Bustinduy, has responded the question that many have been asking for a long time: They equate Kalshi and Polymarket with a betting house and therefore need the corresponding gaming license, a license which of course they do not have. The General Directorate of Gambling Regulation points out that in Spain, as in other European countries, prediction markets are classified as games of chance since they bet on uncertain future events. The license. In Spain, all gambling operators must be subject to a license that offers a series of guarantees, such as identity verification systems and controlling access to the best of age. In addition, they must control and prohibit access to people who are prohibited from playing. Polymarket and Kalshi do not have this license, which is why Consumo initiated the sanctioning file and has ordered the blocking of their web pages. And now what. At the time of writing these lines, the two websites are still operational, but since The Country They say that the ministry has already notified the telecommunications operators, who have between seven and ten days to execute the blockade. When this occurs, a warning message will appear saying that this is an unlicensed gambling operator. The sanctioning process will last between three and four months until its final resolution. Regulatory clash in Europe. Although with different regulations, the case of Spain adds to a list of European countries that have blocked access to Polymarket, such as France, Germany, Belgium, Poland, the Netherlands or Switzerland. Although there are still countries that allow them to operate, Kalshi and Polymarket face increasingly strong opposition in Europe, with many countries not buying the narrative that they are actually an investment marketplace. Meanwhile in the US. In the United States, however, the platforms are increasingly integrated into public conversation. At the regulatory level, since 2020 CFTC considers Kalshi a licensed prediction market. In the case of Polymarket, the platform It was sanctioned in 2022 for offering contracts without the appropriate regulatory structure, but continues to operate. On the other hand, this same month the congress opened a investigation into possible insider trading (let’s remember the case of the capture of Nicolás Maduro). The debate there is not so much whether they are considered gambling or investment, but rather the origin of the information that is handled. Young men. In a Morning Consult report They say that the usual users of this type of apps are under 45 years old and more than 70% are men. In the United States, 25% of men between 18 and 24 years old admit to having gambled at least once in the last six months. Why young men? According to BBCthese types of platforms are at the intersection of several very masculine cultures, such as sports betting and profit speculation. cryptobros either financebros. It is also successful among this audience thanks to the support of public figures such as Logan Paul, who was sponsored by Polymarket. Where almost everyone loses. We recently talked about a massive analysis that confirmed our suspicions: in Polymarket almost everyone loses while 0.1% of users take almost all the benefits. Those who take the lion’s share of the pie are professional traders who have access to very expensive data sets. In addition, many times the betting conditions have a lot of fine print, even the easiest ones to get right are not that simple. In it Wall Street Journal They tell the story of a man who bet Kalshi that rapper A$AP Rocky would say the word “rapper” on Jimmy Fallon’s Tonight Show. If he was right he would win $168,000. Although he said the word, in the televised version that part was deleted and according to the rules, which were quite hidden, only what was broadcast on television counted. He lost everything. Image | Kalshi, Polymarket In Xataka | If you think you can beat a betting house in the long term, we have bad news: they have you in from the beginning.

Spain wanted Ryanair to pay it 107 million euros. Now Europe responds: sanctioning file against Spain

Airlines have limited “freedom to set prices.” At least that is what the European Commission, which has sanctioned our country, believes. It did so with a statement published yesterday, Wednesday, October 8, in which it clarified that the Air Navigation Law prevents airlines from charging for this service. The decision is also a hard blow for Spain’s role in its open judicial fight against Ryanair. The European Commission. She was the last to give her opinion. And he has done it in the worst possible way for Spain. In a public statementthe European entity confirms that it has opened a sanctioning file against our country when it understands that it is taking measures to restrict the freedom of airlines to charge for a service to which they are entitled. That right is to charge for hand luggage, a service for which Spain has already imposed a sanction on five airlines. The cost of that punishment was close to 180 million euros and Ryanair was the company most punished, receiving a fine that exceeded 107 million euros. According to the European Commission, these sanctions also fail to comply with Community regulations. Right. According to the European Commission: “Spain’s National Air Navigation Law does not allow airlines to subject the carriage of carry-on baggage to an additional charge, restricting the freedom of airlines to set prices and differentiate between a service that includes the right to a larger carry-on baggage allowance, and a service that does not offer that possibility and simply provides the smaller allowance that constitutes a necessary aspect of the carriage.” From Europe, therefore, it is understood that Spanish airlines are allowing the minimum necessary luggage that is mandatory to pass through completely free of charge. On the contrary, it considers that our country is preventing charging for larger packages and that, therefore, companies are prevented from charging more for the service and are forced to abandon this income option. “Reasonable”. The problem right now is that there are no established bases for what is or is not considered “carry-on luggage.” The Court of Justice of the European Union noted, as stated in the European Commission’s own statement, that hand luggage “should, in principle, be free as long as it meets reasonable requirements in terms of weight and dimensions, and complies with the applicable security requirements. Hand luggage that exceeds such reasonable requirements is subject to price freedom.” But what is reasonable? For the European Union, companies like Ryanair already complied with their previous measurements of 40 x 25 x20 cm (expanded to 40 x 30 x 20 cm last summer). For Spain, however, that size or a smaller one does not allow the transport of basic belongings and does not meet those “reasonable requirements in terms of weight and dimensions.” Justice. That same debate, in fact, has been experienced by the fined companies themselves in our country. First because they have received some of the higher economic sanctions on companies in the history of Spain. And, second, because not even the Spanish Justice has shown a clear criterion when deciding whether companies or consumers are right. In SevilleFor example, Ryanair won a lawsuit against a consumer who was charged at the boarding gate for not having checked luggage on time. In Salamancait was the consumers who beat the company for the same reason. A setback for Spain. The decision of the European Commission is a hard setback for Spain, although it was expected. The Transport Commissioner of the European Union himself, Apostolos Tzitzikostas, received the CEO of Ryanair personally a few days ago. Pablo Bustinduy, Minister of Consumer Affairs, preferred to attend to him remotely by video call. The company had also threatened to take the legality of the fine imposed in our country to the European courts. Now, it has the backing of the European Commission should the matter go to trial. For Bustinduy: “the charge for hand luggage represents a conflict between the interests of the large airline industry, which profits from these practices, and the rights of consumers. Unfortunately, today the Commission has decided to position itself on the side of the interests of the multinationals,” in words reported by The Country. An interested movement. As we already told a few weeks ago, the European Union is seeking to reach an agreement on the minimum measures for hand luggage. Both the European Commission and the European Parliament are deciding what minimum measures are imposed. However, until now measures have been put on the table that were almost identical to those offered by Ryanair and other companies low cost. The Irish company also subscribed to the decision of Airlines for Europe (A4E), an association of airlines including Ryanair, to confirm that increased the minimum size allowed in their cabins at 40 × 30 × 15 cm. They are measures slightly lower than those that Ryanair has ended up adopting and similar to those sought by the European Union, in what is a clear nod to those who have defended these latter positions. What happens now? With this file, the European Union gives our country a period of two months to adapt national legislation to European regulations or to give a reasoned response to it. If the changes are not implemented or the response is not considered sufficiently reasoned, the European Commission may issue a reasoned opinion. This is the second formal phase of the procedure and if Spain maintains its positions, the case can be referred to the Court of Justice of the European Union. Photo | Niklas Jonasson and Andrijana Bozic In Xataka | Michael O’Leary, CEO of Ryanair: “I don’t want the money. Let them fly without suitcases”

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