Spain Blocks Polymarket and Kalshi

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Spain Blocks Polymarket and Kalshi – Regulators Investigate Alleged Unlicensed Gambling Operations

Key Takeaways

Spain has ordered internet service providers to block access to Polymarket and Kalshi during an ongoing regulatory investigation.
The country’s gambling regulator has opened sanctioning proceedings over alleged operations without a required Spanish license.
The temporary block is expected to remain in place for three to four months.
Spanish authorities classify prediction markets as gambling because they involve bets on uncertain future outcomes.

Spain Orders ISP Blocks While Investigation Proceeds

Spain’s Ministry of Consumer Rights has announced a temporary block on prediction market platforms Polymarket and Kalshi. The measure was published in the Official State Gazette and instructs internet service providers to restrict access to both platforms within the country.

According to the ministry, Spain’s gambling regulator, the Dirección General de Ordenación del Juego (DGOJ), has initiated sanctioning proceedings against the two US based operators. The regulator alleges that the companies have been offering services in Spain without obtaining the mandatory administrative authorization required under national gambling law.

The access restriction is expected to remain in place for three to four months while the investigation continues. During this period, users attempting to visit the affected websites are expected to receive warning notices stating that they are trying to access an unlicensed gambling operator.

Spanish authorities stated that previous attempts to notify the companies at known foreign addresses were unsuccessful. As a result, the regulator issued formal notices through publication in the state gazette.

Why Spain Classifies Prediction Markets as Gambling

The DGOJ has clarified that it considers prediction markets to fall within Spain’s gambling framework. The regulator’s position is that these platforms involve placing bets on uncertain future outcomes, which brings them under the scope of existing gambling legislation.

Under Spanish law, operators offering gambling services must obtain specific licenses before serving customers in the country. This requirement applies regardless of whether the products resemble traditional sports betting or alternative formats such as event based contracts.

Polymarket and Kalshi allow users to trade positions on the outcomes of future events rather than place conventional sportsbook or casino wagers. Markets listed on these platforms have included elections, geopolitical developments, economic events, and political leadership changes.

Examples cited include markets related to whether Spanish Prime Minister Pedro Sánchez would leave office early and which global political leaders might depart their posts during the year. Spanish authorities argue that these types of contracts meet the definition of gambling because they involve staking funds on uncertain outcomes.

Consumer Protection Requirements Under Spanish Law

In outlining its position, the DGOJ emphasized that unauthorized operators do not provide several consumer protection mechanisms required under Spanish regulation.

These include identity verification systems designed to confirm the age and identity of users, controls to prevent minors from accessing gambling services, and safeguards for individuals who have self excluded or are otherwise banned from gambling. Spanish law also mandates additional oversight mechanisms aimed at protecting consumers.

According to officials, platforms operating without a local license are not subject to these requirements. The regulator’s enforcement action therefore addresses both licensing compliance and the application of consumer protection standards.

For users in Spain, this means access to Polymarket and Kalshi is restricted until the investigation concludes or the regulatory status changes.

Growing European Scrutiny of Prediction Markets

Spain’s decision adds to a broader pattern of regulatory scrutiny across Europe. Polymarket was blocked in France in 2024 after authorities concluded that its activities were likely incompatible with French law.

Other European jurisdictions that have restricted access to the platform include Germany, Belgium, Portugal, Switzerland, Romania, the Netherlands, and Poland. These actions reflect a shared regulatory concern about how prediction markets fit within existing legal frameworks.

At the same time, approaches differ across jurisdictions. Malta has publicly stated that it is examining the prediction market sector and potential regulatory options. Earlier this year, Gibraltar granted a license to its first prediction market operator.

These contrasting measures illustrate an ongoing debate about classification. Some regulators treat prediction markets as gambling because participants stake money on uncertain outcomes. Others are assessing whether such products could fall under financial market, securities, or commodities rules.

Prediction markets have grown from a niche online activity into a multibillion dollar sector, particularly after increased visibility during the 2024 US presidential election cycle. As the sector has expanded, regulators have intensified their focus on licensing requirements, legal classification, and consumer protection standards.

Possible Next Steps for the Operators

Once the Spanish investigation concludes, several formal outcomes are possible within the regulatory process. Polymarket and Kalshi could seek to obtain the necessary local licenses, challenge the regulatory classification applied to their services, or adjust their offerings to align with Spanish requirements.

A final ruling is expected within three to four months. Until then, the ISP block remains in effect and Spanish users are prevented from accessing the platforms.

Our Assessment

Spain’s decision formally places prediction market platforms within its gambling regulatory framework and subjects them to the same licensing and consumer protection standards as other gambling operators. For users and operators, the case highlights how different European jurisdictions are addressing the legal status of event based trading platforms. The outcome of the Spanish proceedings will determine whether Polymarket and Kalshi can operate under local authorization or remain restricted in the market.