Spain Temporarily Blocks Polymarket and Kalshi Over Unlicensed Gambling Concerns

Spain has temporarily halted the operations of prediction market platforms Polymarket and Kalshi within its territory after regulators concluded that both services were offering gambling-related products without the legally required authorisations.

The country’s Ministry of Social Rights, Consumer Affairs & Agenda 2030 confirmed that the Directorate General for the Regulation of Gambling has initiated formal sanction proceedings against the two companies. The measure was also published in Spain’s official state gazette and introduces a provisional suspension of activity while the investigation is ongoing.

Spanish regulators argue that both platforms fall under gambling legislation because they enable users to wager money on uncertain future outcomes, including sporting events and developments in international affairs. According to the authorities, neither operator currently holds the administrative licence needed to legally provide gambling services in Spain.

The temporary restriction is expected to remain in force for approximately three to four months, covering the duration of the regulatory inquiry. Spanish media reports further indicate that internet service providers will be instructed to implement website blocking measures within a timeframe of around seven to ten days.

This development places Spain among a growing number of jurisdictions taking action against prediction markets. Polymarket has already encountered regulatory pushback in multiple European countries, including Romania, where courts upheld earlier decisions by regulators to blacklist the platform.

Spain’s move also arrives amid increasing international scrutiny of prediction markets more broadly. Alongside established regulatory debates in the United States, authorities in India have also issued warnings that such platforms could be captured under new prohibitions targeting online money-based games.

The Spanish decision is notable for its clear classification stance, with regulators treating event-based betting on uncertain outcomes as a form of gambling requiring a licence, rather than a novel financial instrument outside existing gambling rules. This position aligns with Spain’s broader tightening of oversight in the online gambling sector. The Consumer Rights Ministry has already advanced reforms to the national Gambling Act, including proposals aimed at strengthening consumer protection measures, tightening rules on promotional activity for customer acquisition, and restricting the use of celebrities and influencers in gambling advertising.

For operators in the sector, the decision underscores the challenges of maintaining a uniform global approach across different regulatory regimes. While prediction market companies often argue in some jurisdictions that event contracts should be treated as financial products, Spanish regulators and others are increasingly focusing on the functional reality of the platforms—namely that users deposit funds, take positions on future outcomes, and receive payouts based on those results.

For licensed gambling operators in Spain, the intervention is likely to be viewed as reinforcement of regulated market boundaries. For policymakers, the case highlights an ongoing regulatory question over whether prediction markets belong under gambling law, financial regulation, or an entirely separate legal category. For now, Spain has taken a definitive position by placing such activity firmly within its gambling regulatory framework.

By fLEXI tEAM