Spain Blocks Prediction Markets Kalshi, Polymarket for Potential Gambling Law Violations
Spain has blocked access to prediction market platforms Kalshi and Polymarket while investigating possible violations of national gambling laws. The Directorate General for Gambling Regulation (DGOJ) issued a temporary three to four month ban because the firms allegedly operated without required administrative authorization, and attempts to contact them at foreign addresses failed. Spanish authorities classify prediction markets as gambling when they involve betting on uncertain future outcomes, requiring specific licenses. The platforms lack necessary safeguards for identity verification, preventing minors or self-excluded individuals from accessing, and other user protections. Spain joins countries such as Indonesia, Thailand, and India in restricting or banning prediction markets. Both Polymarket and Kalshi have grown rapidly, with recent monthly trading volumes of $5 billion and $13.7 billion and multibillion-dollar valuations. The industry faces rising scrutiny globally, amid concerns over user protection and insider trading, including investigations and regulatory action in the United States.
