Spain’s gambling regulator has opened sanction proceedings against prediction-market platforms Polymarket and Kalshi, ordering internet service providers to block access to both sites nationwide. The Directorate General for the Regulation of Gambling said the companies were operating without the required administrative license, classifying their bets as games of chance under Spanish law.
Why Spain Acted
Spanish authorities treat prediction markets the same way they treat casino games or sports betting — any platform that lets users wager on future events needs a specific license. Polymarket and Kalshi never applied for one. The regulator acted on its own initiative, slapping a precautionary block on the websites while the formal sanction process plays out.
That process is expected to take three to four months. At the end, the regulator could impose fines or demand permanent changes to how the platforms operate in Spain. For now, Spanish users trying to access either site will hit a dead end.
Indonesia’s Own Ban
Spain isn’t the only government cracking down. Indonesia banned Polymarket outright after the platform started seeing heavy traffic on bets related to the Indonesian president’s term limits. Officials there didn’t wait for a licensing debate — they just cut off access.
The Indonesian move suggests a growing impatience among regulators who see prediction markets as unlicensed gambling, not as financial forecasting tools. Polymarket, which lets users trade on everything from election outcomes to sports scores, has long argued it’s a market, not a casino. Regulators in multiple countries disagree.
US Congressional Probe
Back in the United States, Representative James Comer has launched an investigation into both Polymarket and Kalshi. Comer’s House Committee is looking into whether insider trading tied to classified military operations occurred on the platforms.
The congressman hasn’t released specifics, but the probe adds a new layer of legal risk for the two companies. In the U.S., prediction markets operate in a gray area — the Commodity Futures Trading Commission has sued both platforms in the past, arguing their contracts amount to illegal gaming. Comer’s inquiry shifts the spotlight from civil regulators to Congress itself.
Neither Polymarket nor Kalshi has commented publicly on the Spanish sanctions or Comer’s investigation. Both companies still serve U.S. users, though Kalshi recently restricted some event contracts after CFTC pressure.
The Spanish sanction process is only in its first weeks. How the regulator rules in three or four months could set a precedent for other European countries weighing similar action. Meanwhile, Comer’s committee is still gathering evidence — and Indonesia made clear it won’t tolerate the platforms at all.
