Spain Orders ISPs to Block Polymarket, Kalshi Over Unlicensed Betting Products

Spain has moved to block access to prediction-market platforms Polymarket and Kalshi, adding to growing global regulatory pressure on the sector after similar steps in Indonesia and India.

CoinDesk reported on May 26 that Spain’s Ministry of Consumer Affairs had opened disciplinary proceedings against Polymarket and Kalshi and ordered internet service providers to block access to both platforms.

Spain’s Directorate General for the Regulation of Gambling, or DGOJ, said in an official gazette notice that the two companies offered betting products tied to uncertain future events without the licenses required under Spanish law. The precautionary blocking measures will remain in place while the proceedings are underway. The process is expected to take about three to four months.

The action followed failed attempts by Spanish authorities to notify the two companies through known overseas addresses. Authorities said unlicensed operators may lack adequate safeguards for identity verification, protection of minors and self-exclusion systems for users vulnerable to gambling addiction.

Polymarket and Kalshi account for most prediction-market trading activity. DefiLlama data show Kalshi recorded about $5.9 billion in trading volume over the past 30 days, while Polymarket posted about $3.8 billion. Together, they represented about 88% of the roughly $11 billion traded across major prediction markets during that period.

Prediction markets are structured around wagers on future outcomes such as elections, economic indicators, sports and geopolitical events. Regulators across jurisdictions, however, differ on whether such products should be treated as gambling or as financial-market instruments.

Spain’s move aligns with a broader tightening of prediction-market oversight across jurisdictions. Indonesia and India have blocked access to Polymarket under online gambling rules. Taiwan, Thailand, China and Japan have also reportedly restricted access to the platform. Ukraine has blocked Polymarket and has not left open a path for a legal return.

Belgium, Australia, France, the U.K. and Germany are also on Polymarket’s list of blocked countries. Even so, the company is seeking to reenter the US market.

Kalshi has taken a different regulatory route in the US. The platform operates under oversight from the Commodity Futures Trading Commission, though controversy around its business has continued there as well.

Spain’s action has again highlighted regulatory risks facing the prediction-market industry. Trading volumes are rising quickly, but country-by-country access and growth could be constrained if regulators classify the products as gambling.