Spain ordered nationwide blocks on Polymarket and Kalshi, citing unlicensed gambling operations.
Polymarket News
Spain's gambling regulator has ordered a nationwide block of Polymarket and Kalshi and opened disciplinary proceedings against both platforms for operating without the administrative authorization required under Spanish law. The Directorate General for Gambling Regulation (DGOJ), which operates under the Ministry of Social Rights, Consumer Affairs and Agenda 2030, published the action in Spain's Official State Gazette on May 26.
The DGOJ initiated proceedings after regulators were unable to reach either company at their known foreign addresses. Notice was served through the Official State Gazette under standard Spanish administrative procedure. The precautionary blocks are expected to remain in place for three to four months while the proceedings run their course.
Spain Classes Prediction Markets as Gambling
Under Spanish law, prediction markets are classified as gambling when bets are placed on uncertain future outcomes, and operators must hold a specific administrative license to serve users in the country. The DGOJ said both platforms also lack the identity verification systems, minor access controls, and self-exclusion mechanisms that licensed gambling operators are required to maintain.
Spain's action came one day after Indonesia blocked Polymarket, similarly classifying it as illegal online gambling. Brazil blocked both platforms in April 2026 as part of a broader ban covering approximately 28 services, citing investor protection concerns. Portugal ordered Polymarket to be blocked in January 2026 after a surge in presidential election bets were placed hours before results were announced. Argentina followed with a court-ordered nationwide block in March 2026.
US scrutiny of both platforms has also grown. House Republicans opened an investigation into Polymarket and Kalshi last week, with one congressman stating that congressional action may be necessary. In April 2026, a US soldier was charged with placing bets on Polymarket using confidential information, allegedly earning over $400,000 from predictions tied to a foreign leader's removal from power. A separate group of wallets netted approximately $2.4 million on markets linked to an armed conflict.
Despite the regulatory pressure, both platforms recorded strong trading volume in May 2026. Polymarket generated more than $5 billion in monthly volume, while Kalshi exceeded $13.7 billion, according to Dune Analytics data. Polymarket is reportedly seeking a $15 billion valuation, and Kalshi most recently raised capital at a $22 billion valuation.
The DGOJ stated that Spain's treatment of predictionmarkets as gambling aligns with other European jurisdictions. The regulatory landscape across the continent remains inconsistent, with countries applying different standards based on the type of outcomes being traded and each platform's local licensing status.
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