TLDR
- Spain opened disciplinary proceedings against Polymarket and Kalshi for operating without local licenses.
- Regulators ordered internet service providers to block access to both prediction market platforms.
- Authorities said the platforms offered betting on uncertain future events without authorization.
- The blocking measures will remain in place during a review process expected to last several months.
- Spain joins other countries including Indonesia and India in restricting Polymarket.
- Kalshi operates under CFTC oversight in the United States but faces regulatory pressure abroad.
Spain has opened disciplinary proceedings against prediction market platforms Polymarket and Kalshi. The Ministry of Consumer Affairs ordered internet service providers to block access to both platforms. Spain said the companies offered betting products without the licenses required under national law.
The country’s gambling regulator, the Directorate General for Gambling Regulation, published the notices in the official state gazette. Authorities said the platforms provided betting tied to uncertain future events without authorization.
Officials stated that precautionary blocking measures will remain while the cases proceed. The review process is expected to last three to four months.
Regulators said they failed to notify the companies through known foreign addresses. Therefore, they proceeded with publication in the state gazette.
The regulator warned that unlicensed operators may lack identity checks and safeguards for minors. It also cited the absence of systems for self-excluded gamblers.
Spain Targets Prediction Markets Over Licensing Rules
Spain joins other jurisdictions that have restricted prediction markets. Regulators continue to debate whether such products fall under gambling or financial market rules.
Indonesia blocked Polymarket earlier this week under online gambling restrictions. India also restricted access to the platform.
Authorities in Taiwan, Thailand, China, and Japan have imposed limits on Polymarket. Ukraine blocked the platform without any legal path for its return.
Polymarket’s blocked country list includes Belgium, Australia, France, the U.K., and Germany. The company is preparing to relaunch in the United States.
Kalshi followed a different regulatory path in the U.S. It operates under oversight from the Commodity Futures Trading Commission.
Trading Volume Concentrated in Polymarket and Kalshi
Kalshi and Polymarket currently dominate prediction market trading activity. Data from DeFiLlama shows strong volume across both platforms.
Over the past 30 days, Kalshi recorded about $5.9 billion in trading volume. Polymarket processed roughly $3.8 billion during the same period.
Combined, the two platforms represent nearly 88% of the sector’s $11 billion trading volume. These figures cover the top prediction markets during the period.
Spanish authorities said the blocking order will stay in effect during the proceedings. The regulator confirmed the measures remain active as of publication.
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