Spain Blocks Polymarket and Kalshi During Gambling Investigation
MADRID – Spain has blocked access to prediction market platforms Polymarket and Kalshi while regulators investigate whether the companies breached national gambling laws by operating without licences.
LISTEN TO THIS ARTICLE:The Ministry of Consumer Rights said disciplinary proceedings had been launched against both US-based companies over allegations they lacked the administrative authorisation required to offer gambling products in Spain.
Authorities said the restrictions are expected to remain in place for between three and four months while the investigation continues.
Spain Treats Prediction Markets as Gambling
Spain’s Directorate General for Gambling Regulation said prediction markets fall under gambling rules when users place bets on uncertain future outcomes.
“In Spain, in line with other European jurisdictions, prediction markets are considered gambling when bets are placed on uncertain future outcomes”, the ministry said. Officials added that licensed operators must comply with safeguards including identity verification systems, protections preventing minors from gambling and controls for self-excluded users.
According to regulators, Polymarket and Kalshi were operating without those protections or the required regulatory supervision. The ministry said it attempted to contact both companies before issuing the block but was unable to successfully notify them at their foreign addresses.
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European Pressure Continues to Build
Spain is the latest European country to move against prediction market platforms as regulators increasingly question whether such services should be treated as financial products or gambling operations.
Countries including France, Belgium, the Netherlands and Romania have previously introduced blocks or restrictions against Polymarket.
The regulatory pressure has also expanded globally. Indonesia recently blocked Polymarket after classifying it as illegal gambling, while India and Thailand have also moved against prediction market access.
Despite the growing scrutiny, prediction markets have expanded rapidly since gaining wider mainstream attention during the 2024 US election cycle. Platforms such as Polymarket and Kalshi allow users to trade contracts tied to politics, sports, weather and world events.
The industry has also faced increasing criticism over insider trading concerns. Recent reports linked large profits on geopolitical event contracts to users allegedly trading on confidential or privileged information.
Polymarket said it remained willing to work with regulators.
“We welcome the opportunity to collaborate with Spain on a path forward that supports responsible innovation, transparency and user protection in prediction markets”, a company spokesperson said.
Kalshi did not publicly comment on the Spanish action.
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