Spain’s gambling regulator has blocked local users from the prediction markets platforms Polymarket and Kalshi. The Directorate General for the Regulation of Gambling said the action was a precaution while it addresses allegations the platforms were operating without the required licensing. Authorities in several other countries have also restricted access to these platforms over gambling concerns, and U.S. lawmakers have initiated a probe into potential insider trading.
Spain’s gambling regulator has blocked local users from Polymarket and Kalshi as a precautionary measure. The Directorate General for the Regulation of Gambling said the Ministry of Social Rights, Consumption, and Agenda 2030 opened legal proceedings against the two companies.
Authorities stated prediction markets are deemed games of chance when bets are placed on uncertain future outcomes. “Consequently, operating such markets within Spanish territory requires obtaining a specific administrative license,” according to a Tuesday notice. The order blocking Spanish users is expected to last three to four months while proceedings are resolved.
This move follows a similar ban in Indonesia after Polymarket listed bets on the president’s term. Other countries including Australia, France, and Poland have also restricted access to the platform over gambling concerns. A spokesperson for Polymarket told reporters the platform was “committed to engaging constructively with relevant authorities in every jurisdiction.”
Kalshi and Polymarket are two of the largest prediction markets by trading volume. According to DeFi Rate, their combined weekly notional volume is $6.1 billion. Separately, a New York Times report indicated officials at the U.S. Commodity Futures Trading Commission were pushed out after voicing concerns about such platforms.
U.S. lawmakers on the House Oversight and Government Reform Committee announced a probe into Kalshi and Polymarket over insider trading concerns. Committee Chair James Comer cited reports of suspiciously timed trades ahead of U.S. military actions against Iran. The CFTC, under Chair Michael Selig, has taken the stance that it has exclusive authority over the platforms.
