Spain’s Gambling Regulator Blocks Polymarket And Kalshi Over Alleged Unlicensed Gambling

Spain’s gambling regulator opened sanction proceedings against Polymarket and Kalshi and ordered precautionary blocks on both platforms while it investigates whether the operators violated Spanish gambling law.

“Spain’s gambling watchdog opened sanctioning proceedings against Polymarket and Kalshi, ordering precautionary blocks on both platforms while it investigates whether the unlicensed operators violated the country’s gambling law”

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The Directorate General for Gambling Regulation (DGOJ) issued the website blocking order after attempts to notify the companies at their foreign addresses failed, and the Ministry of Social Rights, Consumer Affairs and Agenda 2030 said the procedure is expected to take three to four months before a final resolution.

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Spain’s ministry said the platforms allow users to place bets on future events and may be violating national gambling rules by operating in Spain without administrative approval.

The DGOJ said unauthorized operators lack safeguards required in Spain, including identity verification, controls to prevent access by minors and self-excluded users, and supervision standards designed to protect users.

In parallel, Spain’s action was described as part of a widening global crackdown on prediction markets, with other countries also restricting access to Polymarket.

While Spain framed prediction markets as gambling when bets are placed on uncertain future outcomes, the US regulatory posture described in the sources emphasizes federal authority over the sector.

The New York Times reported that officials at the Commodity Futures Trading Commission (CFTC) were pushed out of the agency after they voiced concerns about prediction markets like Kalshi and Polymarket, and the CFTC under Michael Selig took the stance that it has “exclusive authority” over the platforms.

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In the same US context, the CFTC filed an amicus brief in KalshiEx LLC v. Schuler in the Sixth Circuit Court of Appeals, asserting the agency’s exclusive jurisdiction over prediction markets.

Spain’s approach was contrasted with the US direction by the way European regulators treat prediction markets as gambling through domestic rules, while the US asserts derivatives-markets jurisdiction with court challenges.

The sources also tie the regulatory fight to political and military-event timing, with the House of Representatives’ Oversight and Government Reform Committee citing “suspiciously timed trades” ahead of US military actions against Iran.

Beyond Spain, the sources describe Minnesota as the first US state to enact an outright ban on prediction markets, with Gov. Tim Walz signing legislation that makes it illegal to host, advertise, or support prediction market services in the state.

“Source: Spain’s Ministry of Social Rights, Consumer Affairs, and Agenda 2030 The move by Spanish authorities follows a similar governmental ban in Indonesia, which blocked access to Polymarket on Friday after the platform listed bets on whether President Prabowo Subianto would leave office before the end of his term”

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The federal government response described in the sources came as the Commodity Futures Trading Commission filed a lawsuit seeking to block the Minnesota law before it takes effect Aug. 1, arguing Minnesota is intruding on federal authority over derivatives markets.

Minnesota’s law passed with bipartisan support, with the state Senate voting 57-9 and the House voting 100-32, and it targets companies rather than individual users.

The dispute is also linked to insider-information allegations involving Polymarket, including a case where a U.S. Army soldier was charged with placing Polymarket bets tied to a U.S. military operation to capture Maduro in Venezuela and prosecutors said he made more than $400,000.

As the legal battle expands, the sources say the fight has reached Congress, with Sens. Adam Schiff and John Curtis introducing legislation that would bar CFTC-regulated entities from listing prediction contracts that resemble sports bets or casino-style games.