Spain bans Polymarket and Kalshi pending license probe

Spain has temporarily banned two major U.S.-based prediction market platforms, Polymarket and Kalshi, for operating without a gambling license. The action, announced in the official state gazette on Tuesday, May 26, by the country’s Consumer Rights Ministry, will last an estimated three to four months while an investigation is completed.

The ministry stated that its gambling watchdog opened a formal probe into the companies for allegedly breaching local rules by lacking mandatory administrative authorization. In Spain, as in other European jurisdictions, prediction markets are considered a form of gambling when users place money on uncertain future outcomes. This subjects them to the same regulatory framework as traditional betting operators.

Authorities said unauthorized operators lack required consumer protection safeguards. These include identity verification systems, access control mechanisms to block minors, and tools to restrict users who have self-excluded or are banned from gambling.

Prediction markets allow users to buy and sell stakes on the outcome of future events, with prices reflecting the perceived probability of different results. Once a niche online activity, the...