Spain Blocks Polymarket and Kalshi Over Gambling Laws

Spain's gambling regulator, the Dirección General de Ordenación del Juego (DGOJ), has blocked access to prediction market platforms Polymarket and Kalshi, citing unlicensed gambling operations under Spanish law, according to CoinTelegraph.

Why It Matters

Spain's move signals accelerating regulatory friction for prediction markets in regulated European jurisdictions. Neither Polymarket nor Kalshi holds a Spanish gambling licence, meaning both platforms operated in a legal grey zone that authorities now appear unwilling to tolerate. For users in Spain, the block means practical inaccessibility without a VPN — and using one to circumvent a regulator's order carries its own legal risk. The action also raises the stakes for Kalshi, which secured CFTC recognition in the United States as of 2023 and has been expanding aggressively; European ambitions now face a harder compliance road. As always, prediction markets — like all forms of gambling — carry real financial risk for participants.

Context

Spain joins a growing list of jurisdictions, including France and parts of Asia-Pacific, that have restricted or banned prediction market platforms on unlicensed-gambling grounds. As of May 2025, Polymarket remains the dominant decentralised prediction platform by volume, while Kalshi operates as a regulated U.S. derivatives exchange. The core regulatory tension is classification: operators argue these are financial instruments, while gambling authorities treat outcome-based wagering as gambling regardless of the underlying technology.

What's Next

Watch for formal written rulings from the DGOJ that could detail the legal basis and open an appeal window for either platform. A coordinated EU-level policy position on prediction markets — potentially through the European Gaming and Betting Association — would be the next significant regulatory milestone to monitor.