Spain suspends Polymarket and Kalshi amid gambling probe

Spain’s gambling regulator, the Directorate General for Gambling Regulation (DGOJ), issued a disciplinary order suspending access to prediction-market platforms Polymarket and Kalshi while it investigates whether they violated Spanish gambling rules. Regulators said they could not reach the firms at the foreign addresses the companies provided.

The Ministry of Social Rights, Consumer Affairs and Agenda 2030 opened proceedings because the platforms are, in the ministry’s words, “allegedly operating in Spain without the required administrative authorization.” The DGOJ said the sites are expected to remain blocked for three to four months while the investigation runs.

Under Spanish law, prediction markets that allow users to wager on uncertain future outcomes are treated as gambling and require a specific administrative license to operate. The DGOJ wrote that, because Polymarket and Kalshi lack that authorization, regulators cannot guarantee the platforms have adequate identity checks, controls to block minors or self-excluded users, or the supervision standards required to protect consumers.

Spain’s action follows recent moves elsewhere. Indonesia blocked access to Polymarket last week, and authorities in Thailand and India have taken steps to restrict or block similar platforms.

Blockchain analytics show Polymarket generated more than $5 billion in monthly trading volume in May, while Kalshi recorded roughly $13.7 billion in the same month. Reports indicate Polymarket has sought a multibillion-dollar valuation and Kalshi most recently raised funds at a valuation of about $22 billion.

U.S. authorities and lawmakers have also scrutinized prediction markets. Investigations have identified wallets that profited about $2.4 million on markets tied to conflicts, and a U.S. service member was charged after allegedly using confidential information to profit more than $400,000 on an event market. Last week, House Republicans opened an inquiry into both firms and indicated that congressional action may be necessary.

The DGOJ said it will use the investigation period to determine whether the platforms operated in Spain without the required license and to enforce national protections for gambling consumers.

Prediction markets allow users to place financial wagers on the likelihood of political, economic or other real-world events. Platforms maintain they provide price discovery and liquidity; regulators emphasize consumer protection, fraud prevention and compliance with national gambling laws.