Spanish regulators have issued a temporary shutdown order against two American prediction market platforms, Polymarket and Kalshi, after determining they were operating without proper gambling licenses, according to the country’s official state gazette published Tuesday.
The Consumer Rights Ministry announced that its gambling oversight agency has launched an investigation into the U.S.-based firms for allegedly violating domestic regulations by failing to obtain required administrative permits.
Officials estimate the prohibition will remain in effect for approximately three to four months while the investigation runs its course.
These prediction market platforms allow participants to purchase and trade positions based on anticipated results of upcoming events, with market prices indicating the likelihood of various outcomes.
Spanish authorities — similar to other European regulators — classify prediction markets as gambling activities when participants wager on uncertain results.
According to the ministry, unlicensed operators are missing essential technical and regulatory protections including identity verification processes, age restriction controls for minors, blocking mechanisms for individuals who have self-banned or been prohibited from gambling, plus necessary user protection standards.
What began as a specialized internet sector has expanded into a multi-billion-dollar market after establishing significant presence in American political betting during 2024.
