Spain Blocks Polymarket, Kalshi Over Unlicensed Prediction Markets

Spain’s Directorate General for the Regulation of Gambling (DGOJ) ordered internet providers to block access to prediction-market platforms Polymarket and Kalshi while authorities review whether the companies operated in Spain without the necessary gambling licenses. The ministry responsible, the Ministry of Social Rights, Consumer Affairs and Agenda 2030, opened administrative proceedings against both firms on Tuesday. Regulators expect the review to take three to four months.

In a notice, the DGOJ wrote that “in Spain — in line with other European jurisdictions — prediction markets are deemed to constitute games of chance when bets are placed on uncertain future outcomes” and that operating such markets in Spanish territory “requires obtaining a specific administrative license.” The regulator said the block will remain in place until the proceedings conclude.

The restriction follows similar actions by other national authorities that raised legal questions about prediction markets and gambling rules. Indonesia restricted access to Polymarket after event listings about the country’s presidency. Governments in several other countries have also limited access to prediction-market platforms over gambling concerns.

Polymarket and Kalshi are among the largest prediction-market platforms by volume. Industry data show combined weekly notional trading volume for the two platforms reached about $6.1 billion. Polymarket stated it is “committed to engaging constructively with relevant authorities in every jurisdiction.” Kalshi did not provide a comment for this report.

U.S. regulators and lawmakers have also increased scrutiny of prediction markets. The Commodity Futures Trading Commission has asserted it has exclusive authority to regulate such platforms and has taken legal steps against state regulators that challenged that view. Separately, the House Oversight and Reform Committee opened a probe into Kalshi and Polymarket on insider trading concerns. Committee Chair James Comer cited reports of suspiciously timed trades on the platforms ahead of U.S. military actions against Iran.

The Spanish administrative review will determine whether the platforms breached licensing requirements and whether penalties should apply. If the ministry finds no breach or the companies obtain the required authorization, Spanish access could be restored once the proceedings end. Until then, users in Spain cannot reach Kalshi and Polymarket while authorities carry out the enforcement process.