Spain blocks Polymarket and Kalshi over unlicensed gambling
In brief
- Spain's gambling authority blocked Polymarket and Kalshi users pending legal proceedings.
- Spanish law classifies prediction markets as games of chance requiring administrative licensing.
- Six countries have restricted Polymarket access over gambling and regulatory concerns.
Spain's licensing dispute
Spain's gambling authority alleged that Polymarket and Kalshi were operating without necessary licensing in violation of Spanish gambling law. The regulator issued an order blocking Spanish users from both platforms until legal proceedings were resolved, expected to conclude within three to four months.
Spanish law treats prediction markets as games of chance when bets are placed on uncertain future outcomes. Operating such markets within Spanish territory requires obtaining specific administrative licensing — a requirement the regulator said both platforms failed to meet.
Global regulatory pushback
Spain joins a growing list of jurisdictions restricting prediction market access. Australia, France, Poland, Singapore, Ukraine, and Switzerland have all restricted access to Polymarket over similar gambling concerns. Indonesia blocked Polymarket on Friday after the platform listed bets on whether President Prabowo Subianto would leave office before the end of his term.
The two platforms command substantial trading volume. Kalshi and Polymarket have combined weekly notational volume of $6.1 billion, making them among the largest prediction market platforms globally.
US regulatory scrutiny
Pressure isn't limited to Europe. The US House Oversight and Government Reform Committee initiated a probe into Kalshi and Polymarket over insider trading concerns. Committee Chair James Comer cited reports of "suspiciously timed trades" on the platforms ahead of US military actions against Iran.
Meanwhile, the Commodity Futures Trading Commission has taken the stance that it holds exclusive authority over prediction market platforms. Officials at the CFTC were pushed out after voicing concerns about the platforms.
"committed to engaging constructively with relevant authorities in every jurisdiction" — Polymarket spokesperson
A Polymarket spokesperson told Cointelegraph the platform remains committed to working with regulators. The company hasn't yet publicly responded to Spain's specific allegations.
