Spain Shuts Down Access to Polymarket and Kalshi
Spain’s Ministry of Consumer Affairs has initiated disciplinary proceedings against the world’s leading prediction platforms, Polymarket and Kalshi. The Directorate General for Gambling Regulation (DGOJ) has ordered local internet service providers to immediately block access to both platforms, marking a significant escalation in European regulatory oversight of decentralized and centralized betting markets.
- Spain’s DGOJ has ordered ISPs to block Polymarket and Kalshi.
- The platforms are accused of offering unlicensed gambling products tied to uncertain future events.
- Precautionary blocks will remain active during a 3-to-4-month investigation.
- The move aligns Spain with other nations restricting prediction markets, including India and Indonesia.
Unlicensed Betting Under the Microscope
According to notices published in Spain’s official state gazette, the DGOJ determined that both platforms were operating without the mandatory licenses required under Spanish gambling laws. Because the regulators were unable to reach the companies via their registered foreign addresses, they proceeded directly with the precautionary blocking orders.
Spanish authorities emphasized that utilizing blockchain technology or crypto assets does not exempt a platform from local betting regulations. They warned that unlicensed operators fail to provide essential consumer protections, such as identity verification, minor protection protocols, and self-exclusion systems for vulnerable players.
“Operating on a blockchain does not change the fundamental nature of a wager. If users are betting on uncertain future outcomes, it constitutes gambling and requires strict regulatory compliance to protect the public.”
Prediction Market Dominance
The ban targets the two undisputed giants of the prediction market sector:
- Kalshi: $5.9 billion in trading volume over the past 30 days.
- Polymarket: $3.8 billion in trading volume over the past 30 days.
- Combined Share: Approximately 88% of the total $11 billion global prediction market volume.
A Growing Global Backlash
Spain is not alone in its aggressive stance. The decision reflects a broader international debate over whether prediction markets should be regulated as financial derivatives or traditional gambling. Recently, Indonesia and India blocked Polymarket under strict online gambling bans. Similar restrictions are active in Taiwan, Thailand, China, Japan, and Ukraine. Even within the West, Polymarket restricts access in several major European nations, including France, Germany, and the UK, while working on a compliant relaunch in the United States.
Meanwhile, Kalshi has pursued a financial regulatory path in the US under the Commodity Futures Trading Commission (CFTC), though it continues to face intense legal and regulatory scrutiny globally.
FAQ
Why did Spain block Polymarket and Kalshi?
Spain’s gambling regulator, the DGOJ, blocked the platforms because they offer betting services on uncertain future events without holding the required national gambling licenses.
How long will the block last?
The precautionary internet blocks are expected to remain in place for at least three to four months while the official disciplinary proceedings are carried out.
Does using cryptocurrency bypass these gambling laws?
No. Spanish authorities explicitly stated that using blockchain technology or crypto assets does not change the legal definition of gambling products.
