Spanish authorities block Polymarket and Kalshi over gambling laws
Spain’s gambling regulator blocked Polymarket and Kalshi while it investigates whether the platforms need local licenses.
Intelligence analysis by GPT-5.4 Mini
Spain’s regulator says prediction markets can count as gambling when they involve bets on uncertain future outcomes, so it has blocked local access to Polymarket and Kalshi while legal proceedings continue. The move adds to a wider global crackdown on prediction market platforms.
Spain’s rules people think these trading games look too much like gambling. Because of that, the country told local internet providers to block Polymarket and Kalshi while it checks the case.
It is like a school game where someone says, “This needs a permit before it can be played here.” The government wants to decide whether these platforms are betting sites, money markets, or something in between.
The story matters because other countries are doing the same thing. That means these prediction sites may face more roadblocks as they try to grow around the world.
Analysis
Spain’s action
Spain’s Directorate General for the Regulation of Gambling said it blocked local users from Polymarket and Kalshi as a precaution while authorities examine whether the companies were operating without the required licensing. The country’s Ministry of Social Rights, Consumption, and Agenda 2030 has opened legal proceedings against both platforms.
The regulator said prediction markets are treated as games of chance in Spain when they involve bets on uncertain future outcomes. Under that view, operating them in Spanish territory requires a specific administrative license. The proceedings are expected to take three to four months.
Wider pressure on prediction markets
The Spanish move fits a broader pattern of national restrictions on Polymarket and similar services. The article says Indonesia recently blocked Polymarket, and other countries including Australia, France, Poland, Singapore, Ukraine, and Switzerland have also restricted access over gambling concerns.
Cointelegraph also notes that Polymarket and Kalshi are among the largest prediction markets by trading volume, with combined weekly notional volume of $6.1 billion, according to DeFi Rate. That scale helps explain why regulators are paying attention.
US scrutiny is growing too
The story also points to rising pressure in the US. The New York Times reported that CFTC officials were pushed out after raising concerns about prediction markets. Separately, lawmakers on the House Oversight and Government Reform Committee opened a probe into Kalshi and Polymarket over possible insider-trading issues tied to trades before US military actions against Iran.
Polymarket told Cointelegraph it was committed to engaging constructively with regulators in each jurisdiction. Kalshi declined to comment.
Key points
- Spain’s gambling regulator ordered access to Polymarket and Kalshi blocked for local users.
- Authorities said the platforms appeared to be operating without the needed licensing.
- The regulator said prediction markets can count as games of chance under Spanish rules.
- Other countries have already restricted Polymarket over similar gambling concerns.
- The article says the two platforms handle large trading volumes and are facing more scrutiny in the US.
