Spain Blocks Polymarket and Kalshi Amid Gambling License Investigation

• Spain blocks Polymarket and Kalshi amid gambling licence investigation actions.
• Regulators treat prediction markets as gambling requiring strict approval rules.
• Global pressure grows as countries restrict prediction market platforms expansion.

Spain intensified its crackdown on prediction market platforms after regulators blocked domestic access to Polymarket and Kalshi during a new gambling licence investigation. Authorities believe both companies may have operated illegally in the country without securing approval from Spanish regulators. Consequently, the dispute adds fresh pressure on a rapidly growing sector that already faces mounting restrictions across Europe and beyond.

Spain’s Ministry of Consumer Rights confirmed Tuesday that it opened disciplinary proceedings against the two US-based platforms. Officials stated that prediction markets fall under gambling regulations because users wager on uncertain future events. Therefore, companies must obtain official authorization before offering services in Spain.

The ministry also suspended access to both platforms while investigators review the case. Regulators expect the process to last between three and four months.

Besides, officials argued that licensed operators must follow strict consumer protection rules. These rules include identity verification checks, age restrictions, and safeguards for people who voluntarily exclude themselves from gambling services.

Spain Tightens Oversight on Prediction Markets

Spanish regulators framed the investigation as part of a wider European push against unlicensed betting platforms. Several countries already restricted or blocked prediction market services over gambling concerns. France, Belgium, Romania, and the Netherlands previously moved against Polymarket after authorities questioned the platform’s legal status.

Moreover, regulators across Europe increasingly view prediction markets as similar to traditional sportsbooks. These platforms allow users to speculate on elections, financial events, weather outcomes, and geopolitical developments. Hence, watchdogs argue that operators should follow the same compliance standards as licensed gambling companies.

Spanish officials also revealed difficulties contacting the two firms before implementing the domestic block. According to the ministry, attempts to notify the companies failed before authorities restricted access.

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Global Pressure Continues to Build

Polymarket responded by signaling willingness to cooperate with Spanish authorities. Company representatives said they support discussions focused on transparency, innovation, and user protection. However, Kalshi did not publicly respond after Spain announced the investigation.

Significantly, scrutiny around prediction markets accelerated after several controversial betting activities attracted international attention. Some traders reportedly placed large wagers before major geopolitical conflicts and military developments. Critics argued that these markets could encourage speculation around sensitive global events.

Additionally, governments outside Europe have expanded restrictions on prediction market operators. Indonesia already banned Polymarket, while Brazil recently blocked more than two dozen similar platforms. In the United States, Minnesota became the first state to approve legislation banning prediction markets within its jurisdiction.

The legal battle in America continues to escalate. The Trump administration recently sued Minnesota officials and argued that state lawmakers interfered with federal oversight rules. Meanwhile, lawmakers in several other states continue drafting new measures targeting the fast-growing industry.

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