Spain Halts Access to Polymarket and Kalshi Pending Regulatory Review

(AsiaGameHub) –   Spain has directed internet service providers to block access to Polymarket and Kalshi as gambling regulators assess whether the two prediction market platforms offered services to local users without the necessary licenses.

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Good to Know

• The DGOJ has initiated disciplinary proceedings against Polymarket and Kalshi.
• The temporary block is expected to last between three and four months.
• In Spain, prediction markets are classified as gambling if users wager on uncertain future events.

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Spanish users attempting to access Polymarket or Kalshi should see warnings stating that the sites do not have gambling authorization. The Ministry of Consumer Rights made the announcement, and the notice was subsequently published in the Official State Gazette.

The core issue in this case is whether event contracts fall under Spain’s gambling laws. The Dirección General de Ordenación del Juego (DGOJ) asserts they do, since users place bets on uncertain future results. This stance means prediction markets must comply with licensing regulations before they can offer services to Spanish users.

Consumer Regulations Underpin Spain’s Case

Regulators noted that unlicensed platforms fail to implement the safeguards mandated in Spain. These include identity verification, controls to prevent minors from accessing services, self-exclusion programs, restrictions on banned players, and other consumer protection measures.

Authorities also stated that previous efforts to notify both companies at their foreign addresses were unsuccessful. Publishing the notice in the state gazette provided the DGOJ with an official way to move forward.

Polymarket and Kalshi do not provide traditional online casino games. Instead, users trade positions on upcoming events such as elections, economic indicators, global political developments, and leadership transitions. Recent markets featured questions like whether Spanish Prime Minister Pedro Sánchez would resign early and which political figures might step down this year.

Spain has now joined a growing list of European countries tightening restrictions on prediction market access. France blocked Polymarket in 2024 after determining the platform likely violated local laws. Germany, Belgium, Portugal, Switzerland, Romania, the Netherlands, and Poland have also imposed restrictions on these platforms.

Yet, there is no unified approach across Europe. Malta is exploring potential regulations for prediction markets, while Gibraltar issued its first prediction market license earlier in 2026. This divergence means operators must navigate questions related to gambling, financial markets, securities, and commodities simultaneously.

Prediction markets experienced rapid growth following increased attention during the 2024 U.S. presidential election. Higher trading volumes have since led to more license audits, consumer protection evaluations, and classification disputes across Europe.

Spain anticipates a final decision within three to four months. Polymarket and Kalshi have several options: apply for local licenses, challenge the gambling classification, or modify their offerings targeted at Spanish users.