CoinDesk
Spain's Ministry of Consumer Affairs opened disciplinary proceedings against prediction market platforms Polymarket and Kalshi and ordered internet service providers to block access to both, citing their operation without licenses required under Spanish gambling law. The Directorate General for Gambling Regulation (DGOJ) published the notices in the country's official state gazette, ruling that the platforms were offering betting products tied to uncertain future events in violation of the licensing regime. The precautionary blocking measures will remain in place while the cases proceed — a process Spanish authorities expect to take three to four months.
Why it matters
Kalshi and Polymarket are not fringe venues. Over the past 30 days, Kalshi recorded roughly $5.9 billion in trading volume while Polymarket processed about $3.8 billion, according to DeFiLlama data. Together the two platforms represent nearly 88% of the roughly $11 billion in trading volume across the sector's top markets during the period, meaning Europe's fourth-largest economy has just cut off the dominant infrastructure for retail event-contract trading. Spanish authorities also said explicitly that using crypto or blockchain does not exempt a platform offering wagers on uncertain outcomes from gambling law — a stance that forecloses the structural defence Polymarket has leaned on in other jurisdictions.
Market impact
Spain joins a quickly widening enforcement perimeter. Indonesia blocked Polymarket earlier this week under online gambling restrictions, mirroring India's move, while Taiwan, Thailand, China, Japan, and Ukraine have also restricted the platform. Polymarket's blocked-country list additionally includes Belgium, Australia, France, the U.K., and Germany — and the platform is currently relaunching in the U.S. Kalshi has taken a different regulatory route, operating under CFTC oversight at home, but the Spanish action shows the venue is not insulated from the global gambling-regulator wave.
Frequently asked questions
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What did Spain's DGOJ do to Polymarket and Kalshi?
The Directorate General for Gambling Regulation opened disciplinary proceedings and ordered internet service providers to block both platforms, ruling they were offering unlicensed betting products under Spanish gambling law. The blocks are precautionary and will remain in place while the cases proceed, a process…
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Why are prediction markets being blocked in Spain?
Spanish authorities said the platforms were offering betting products tied to uncertain future events without the licenses required under national law, and that unlicensed operators may lack safeguards for minors and self-excluded gamblers. They also said using crypto or blockchain does not exempt wagers on uncertain…
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How much trading volume do Polymarket and Kalshi handle?
Per DeFiLlama data, Kalshi recorded roughly $5.9 billion in 30-day trading volume while Polymarket processed about $3.8 billion. Together the two platforms represent nearly 88% of the roughly $11 billion traded across the sector's top markets during the period.
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Which other countries have blocked Polymarket or Kalshi?
Indonesia and India blocked Polymarket earlier in the current crackdown wave. The platform's blocked-country list also includes Taiwan, Thailand, China, Japan, Ukraine, Belgium, Australia, France, the U.K., and Germany. Polymarket is currently relaunching in the U.S.
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How is Kalshi regulated differently from Polymarket?
Kalshi operates in the U.S. under oversight from the Commodity Futures Trading Commission (CFTC), taking a derivatives-style regulatory route. Polymarket has been positioned more as a crypto/blockchain-based venue, a framing Spanish regulators rejected in their enforcement action.
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