Spain Orders Block on Polymarket and Kalshi Amid Unlicensed Gambling Probe
Spain's gambling regulator has opened sanction proceedings against Polymarket and Kalshi and ordered a temporary block on their websites while it reviews whether the platforms operate without required gambling authorization. The ministry says a final resolution is expected within three to four months.
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Story Updates
- Updated Nov 8, 2026, 05:01 PM: Decrypt reports Spain's order cites failed notification attempts, U.S. House probe into both firms, and reported Thai and Indian moves.
What Spain Ordered
Spain's Directorate General for Gambling Regulation (DGOJ) ordered a temporary website block on Polymarket and Kalshi and opened sanction proceedings against both prediction market operators, according to the Ministry of Social Rights, Consumer Affairs and Agenda 2030. The block is a precautionary measure that stays in place until the case is resolved.
The ministry said the platforms allow users to bet on future events and may be operating in Spain without the administrative approval that Spanish gambling law requires. The sanction proceeding was published in Spain's Official State Gazette on Tuesday, after direct notification attempts to the companies at their known foreign addresses were unsuccessful.
Regulatory Basis
Spanish regulators classify prediction markets as gambling when users wager on uncertain future outcomes. The ministry restated that position in its release, noting that other European jurisdictions take the same view and that operating such markets in Spain requires a specific administrative licence. The platforms let traders take positions on the results of elections, economic data, sports and other events, with prices reflecting market-implied probabilities.
The DGOJ argues that unlicensed operators cannot provide the safeguards Spain requires, including identity verification, controls preventing access by minors and self-excluded users, and supervisory standards designed to protect users.
Wider Crackdown
Spain is the latest in a series of national actions against the sector. Brazil blocked 27 prediction market platforms, including Polymarket and Kalshi, in April after its National Monetary Council barred derivatives tied to sports, political, social, cultural and entertainment events. Argentina ordered a nationwide block on Polymarket in March over illegal gambling concerns, and Indonesia blocked Polymarket in May after classifying it as online gambling under local law.
India has also acted against the sector. Polymarket was blocked following a government directive, and Kalshi is reportedly facing a similar order as authorities classify prediction markets as prohibited online money gaming. Reporting on the Indian Kalshi order rests on secondary reports rather than an official notice, and this article does not confirm its status. Thailand has also moved toward blocking the platforms, according to Decrypt.
Market Scale and Scrutiny
Dune data cited by Decrypt put May monthly trading volume at more than $5 billion for Polymarket and $13.7 billion for Kalshi. Polymarket is reportedly seeking a $15 billion valuation, and Kalshi most recently raised funds at a $22 billion valuation.
Scrutiny is also rising in the United States. House Republicans opened an investigation into both firms last week, with one congressman saying "that Congressional action may be necessary." Insider trading concerns have drawn attention, including a group of wallets reportedly netting around $2.4 million on markets related to the Iran War, and a U.S. soldier charged in April with placing Polymarket bets using confidential information.
Timeline and Open Questions
The ministry said the sanction procedure will take three to four months before a final decision, and the platforms are expected to remain blocked for that period. Coverage from the sources reviewed agrees on the core facts: the blocking order, the sanction proceedings, the gambling classification and the publication date. Neither source reported a response from Polymarket or Kalshi, and neither addressed whether the companies plan to seek a Spanish licence or contest the order.
Why It Matters
For Traders
Spanish access to Polymarket and Kalshi is blocked for three to four months, so liquidity and positions tied to Spanish users may thin out during that window.
For Investors
Coordinated blocks across Brazil, Argentina, Indonesia, India and Spain, plus U.S. congressional scrutiny, point to a sector-wide regulatory pattern that could shape prediction market economics for months.
For Builders
Platforms building on prediction market infrastructure should plan for jurisdiction-level geofencing, identity verification and minor-access controls as baseline requirements.
This article is for information only and is not financial advice. Read the full disclaimer.
