Global Crackdown Intensifies: Spain Blocks Polymarket and Kalshi Amid Rising Regulatory Scrutiny

The global regulatory landscape for prediction market platforms is heating up, with governments worldwide intensifying their crackdown. Following Indonesia’s recent move to block Polymarket, Spain has now officially joined the fray, announcing a comprehensive ban on both Polymarket and Kalshi.

Spanish authorities cited the platforms’ failure to secure legal operating licenses within the country, accusing them of illicitly providing online gambling services.

Spain’s Official Stance and Legal Basis

As detailed in the Official State Gazette published on Tuesday, this decisive action was initiated by the Directorate General for the Regulation of Gambling (DGOJ), an arm of Spain’s Ministry of Social Rights, Consumer Affairs and Agenda 2030. Disciplinary proceedings have been launched against both platforms for their unauthorized operations.

Spanish officials clarified that this network block is a “preventive measure,” with the full investigation and administrative penalty process expected to conclude within three to four months.

Under Spanish law, any activity involving wagers on “uncertain future outcomes” is unequivocally classified as gambling. Consequently, prediction market operators are legally obligated to obtain specific licenses to offer their services to the public within Spain.

Critical Deficiencies Highlighted by Regulators

The regulatory body further leveled serious accusations against these unauthorized foreign platforms, highlighting critical deficiencies. They reportedly lack robust Know Your Customer (KYC) identity verification systems, fail to implement adequate controls to prevent underage access, and do not provide essential self-exclusion mechanisms designed to combat problem gambling.

Due to the inability to contact the overseas registered addresses of these companies, Spanish authorities are unable to serve direct notices of the disciplinary actions. Instead, they are proceeding with public notification via the official state gazette, adhering to standard administrative protocols.

A Broader Global Trend: The Regulatory Offensive

Spain’s latest move significantly escalates the global regulatory pressure on prediction markets. This comes just a day after the Indonesian government announced its own blockade of Polymarket, similarly citing “illegal online gambling involving uncertain outcomes.”

Indeed, this year has witnessed a widespread regulatory offensive against prediction market platforms across various jurisdictions:

• April: Brazilian authorities blocked approximately 28 platforms, including Kalshi and Polymarket, under the pretext of “investor protection.”
• January: Portugal issued an emergency order to block Polymarket mere hours before the announcement of presidential election results, following a surge in betting volume.
• March: This was succeeded by a nationwide ban imposed by an Argentine court.