Spain blocks Polymarket and Kalshi over missing gambling licence

Spain's Consumer Rights Ministry has temporarily banned the prediction markets Polymarket and Kalshi from operating in the country, saying the two U.S. platforms lack the gambling licence Spanish law requires. The order was published in the official state gazette, Reuters reported from Madrid.

A probe into unlicensed operators

In a statement, the ministry said its gambling watchdog had opened a probe into both companies for allegedly breaching local rules by operating without mandatory administrative authorisation. The temporary ban stays in force while that investigation runs.

Prediction markets let users buy and sell contracts whose value depends on the outcome of future events. Under Spanish rules, operators that accept money-staked wagers on uncertain outcomes must hold an administrative authorisation issued by the gambling regulator.

Two platforms, the same missing licence

Kalshi operates as a regulated event-contracts exchange in the United States, while Polymarket is best known as a crypto-based platform. Neither holds a Spanish gambling licence — the credential the ministry's watchdog recognises.

Why it matters

The decision cuts Spanish users off from both platforms for now and adds to the regulatory pressure that prediction markets face in Europe. The ministry describes the ban as temporary: it remains in force until the investigation concludes.

Reuters reported the story from Madrid, with reporting by David Latona.