Spain Orders DNS Blocks on Polymarket, Kalshi

Spain’s gambling regulator, the Dirección General de Ordenación del Juego (DGOJ), opened sanctioning proceedings against prediction-market operators Polymarket and Kalshi and ordered precautionary DNS blocks. The regulator directed major internet service providers to redirect the platforms’ domains within seven to ten days and published notices in the Boletín Oficial del Estado after attempts to serve the companies at foreign addresses failed.

The DGOJ estimated the investigation could take three to four months. While the inquiry is under way, users who try to reach the blocked domains are expected to be routed to a government landing page once ISPs apply the network-level DNS restrictions.

Spanish scrutiny of the platforms rose after markets priced an early end to Prime Minister Pedro Sánchez’s term; one Kalshi contract listed Sánchez at a 29% probability. The regulator is examining whether the U.S.-based platforms operated without the required Spanish gambling authorizations.

Other European regulators have taken related actions this year. Portugal’s regulator issued Polymarket a 48-hour shutdown ultimatum in January after roughly $120 million in trading tied to the country’s presidential election. In February the Dutch Gaming Authority ordered Polymarket to stop serving Dutch customers or face fines of €420,000 per week, capped at €840,000.

Regulatory developments in Spain follow a different direction in the United States. On May 12 the Commodity Futures Trading Commission filed an amicus brief in KalshiEx LLC v. Schuler, asserting the agency’s exclusive jurisdiction over prediction markets. CFTC Chairman Michael S. Selig described the filings as an effort to protect federal oversight from state encroachment.

Trading activity across prediction markets has remained substantial: traders recorded $8.6 billion in volume in April 2026. Kalshi closed a $1 billion Series F on May 7 at a reported $22 billion valuation.

The DGOJ framed the DNS blocks as temporary while it completes its review. Possible outcomes of the sanctioning proceedings include civil penalties or orders to cease offering services in Spain. Until the regulator reaches a decision, affected Spanish users may lose access through major ISPs and be redirected to official information pages.