Spanish authorities have blocked access to the prediction market platforms Polymarket and Kalshi. Regulators are now investigating whether the two companies operated without the required gambling licenses.
Why the platforms were blocked
Spain's gambling regulator, the Dirección General de Ordenación del Juego (DGOJ), ordered internet service providers to restrict access to both sites. The move came after the agency flagged that Polymarket and Kalshi may have been offering services that fall under Spain's gambling laws without holding a valid license.
Under Spanish law, any platform that lets users bet real money on the outcome of future events — from election results to sports matches — must obtain a gambling permit. Neither Polymarket nor Kalshi had applied for or received one, according to the DGOJ.
What Polymarket and Kalshi offer
Polymarket and Kalshi are two of the largest prediction market platforms globally. Users buy and sell contracts that pay out based on whether a specific event occurs. The platforms have drawn attention for markets on U.S. election outcomes, Federal Reserve interest rate decisions, and even the likelihood of a stock market crash.
Both companies have insisted they are not gambling operators but rather financial prediction exchanges. Polymarket has called itself a “prediction market” and Kalshi a “regulated exchange” in the U.S., where it is registered with the Commodity Futures Trading Commission. But Spanish regulators see it differently.
Spain's stance on unlicensed gambling
The DGOJ has cracked down on offshore betting sites before. In 2023, it blocked dozens of gambling domains that lacked a Spanish license. The agency says its priority is protecting consumers from unregulated platforms that may not offer safeguards like dispute resolution or responsible gambling tools.
A person familiar with the matter told Reuters the investigation is still in its early stages. The DGOJ is looking at how many Spanish users accessed the platforms and whether they placed bets. If the agency finds violations, it could fine the companies or pursue criminal referrals.
What happens next
Polymarket and Kalshi have not publicly commented on the block. Both could appeal the DGOJ's order or apply for a Spanish gambling license. For now, Spanish users trying to visit either site see a block page from their internet provider.
The investigation may take months. A final decision on whether the platforms broke the law — and what penalties, if any, to impose — has not been set.
