Polymarket and Kalshi Face Access Restrictions in Spain Due to Licensing Violations
Spanish regulators have added themselves to an expanding roster of government bodies implementing restrictions on prediction market services, citing unlicensed gambling operation concerns.
The gambling regulatory body in Spain has prevented domestic users from accessing Polymarket and Kalshi platforms, implementing what officials describe "as a precautionary measure" while investigating potential violations of the nation's gambling legislation by these prediction markets services.
Spain's Directorate General for the Regulation of Gambling (DGOJ) announced on Tuesday that the Ministry of Social Rights, Consumption, and Agenda 2030 had initiated legal action targeting both companies, citing evidence suggesting they were conducting operations without obtaining the required licenses. The DGOJ directive restricts access for Spanish residents to both Kalshi and Polymarket platforms pending the conclusion of legal proceedings, which authorities anticipate will take approximately three to four months to complete.
"The DGOJ wishes to remind the public that, in Spain — in line with other European jurisdictions — prediction markets are deemed to constitute games of chance when bets are placed on uncertain future outcomes," according to a Tuesday notice. "Consequently, operating such markets within Spanish territory requires obtaining a specific administrative license."
Spanish regulators' decision to implement restrictions arrives on the heels of comparable governmental action in Indonesia, where authorities banned Polymarket access on Friday following the platform's introduction of wagers concerning whether President Prabowo Subianto would complete his full term in office. Multiple other nations, including Australia, France, Poland, Singapore, Ukraine and Switzerland, have implemented access limitations to Polymarket due to gambling-related concerns, while the platforms additionally confront enforcement actions and limitations at the US state level.
A spokesperson for Polymarket told Cointelegraph that the platform was "committed to engaging constructively with relevant authorities in every jurisdiction." A Kalshi spokesperson declined to comment.
Both Kalshi and Polymarket rank among the largest prediction markets platforms when measured by trading volume, with their combined weekly notational volume reaching $6.1 billion, according to DeFi Rate.
NYT report shines light on US federal response to prediction markets
The New York Times published a report on Sunday revealing that Commodity Futures Trading Commission (CFTC) officials faced removal from the agency following their expression of concerns regarding prediction markets platforms such as Kalshi and Polymarket.
Under the leadership of Michael Selig, the chair selected by US President Donald Trump, the financial regulatory agency has adopted the position that the CFTC holds "exclusive authority" over these platforms, pursuing legal action against state authorities that have contested this jurisdictional claim.
Members of the US House of Representatives' Oversight and Government Reform Committee made public on Friday their launch of an investigation into both Kalshi and Polymarket regarding insider trading allegations. Committee Chair James Comer referenced accounts of "suspiciously timed trades" occurring on the platforms prior to US military operations against Iran, creating opportunities for specific users to potentially generate profits from privileged information.