Spain temporarily bans prediction market platforms 'Polymarket' and 'Kalshi' for not having a gambling license.

Spanish authorities have blocked access from within the country to 'Polymarket' and 'Kalshi,' prediction markets that allow users to bet on any event, because they do not have gambling licenses.

Spain blocks prediction markets Polymarket, Kalshi over lack of gambling licenses | Reuters
https://www.reuters.com/business/spain-blocks-prediction-markets-polymarket-kalshi-over-lack-gambling-licences-2026-05-26/

Economía | EL PAÍS
https://elpais.com/economia/2026-05-26/consumo-ordena-el-bloqueo-de-polymarket-y-kalshi-en-espana-por-operar-sin-licencia-de-juego.html

On May 26, 2026, Spain's gambling regulatory authority, the Ministry of Consumer Rights, announced that it had initiated disciplinary proceedings against Polymarket and Kalshi for providing gambling services without the necessary administrative licenses. As a preventative measure until the issue is resolved, the Ministry of Consumer Rights has ordered telecommunications companies to temporarily block access to Polymarket and Kalshi within Spain. The access block is expected to last for approximately three to four months until the Ministry of Consumer Rights completes its investigation.

Prediction markets are services that allow users to bet on the outcome of any event. Users can bet on a wide range of topics on the website, such as 'the fate of Russia's invasion of Ukraine' or 'which country will win the World Cup?'. While the service providers describe themselves as 'prediction markets,' there is a strong view that they are a form of gambling, and some states in the United States have already begun to implement regulations.

First state to regulate prediction markets finally emerges - GIGAZINE

Spain also views prediction markets as a form of gambling, and therefore believes they need to obtain the necessary administrative licenses. However, neither Polymarket nor Kalshi have obtained these licenses. The Ministry of Consumer Rights explained that unlicensed operators 'often lack the necessary technical and regulatory safety measures, such as identity verification systems, access control mechanisms for minors and those prohibited from gambling, and standards necessary to protect users.'

Polymarket, a prediction marketplace, launched its service in 2020. Before 2024, it was only acquiring fewer than 1,000 new users per month, with a trading volume of around $1 billion (approximately 160 billion yen). However, it gained many users during the US presidential election in November 2024, and as of the time of writing, it is acquiring approximately 100,000 new users per month.

While there are no specific regulations regarding prediction markets in Europe, debate over their classification is intensifying in the United States.