Spain suspends prediction markets polymarket and Kalshi over licensing concerns

09:30

Spain has temporarily blocked access to prediction market platforms Polymarket and Kalshi over concerns that the companies were operating without the required gambling licences.

According to Spain’s Consumer Rights Ministry, authorities launched an investigation into the two U.S.-based companies for allegedly providing services in the country without proper administrative authorization. The temporary suspension is expected to remain in place for several months while regulators complete their inquiry.

Prediction markets allow users to buy and sell positions linked to the outcome of future events, such as elections, economic trends, sporting events, or political developments. Prices on these platforms generally reflect the perceived probability of different outcomes.

Spanish regulators consider these activities a form of gambling when participants place money on uncertain future events. Authorities argue that companies operating in this sector must comply with strict national rules designed to protect consumers and prevent illegal betting practices.

Officials also stated that unlicensed platforms may lack important safeguards, including age verification systems, identity checks, and restrictions for individuals prohibited from gambling. Consumer protection agencies say these controls are necessary to reduce risks related to fraud, underage participation, and gambling addiction.

Prediction markets have grown rapidly in recent years, especially in the United States, where they became increasingly popular during major political and economic events. Supporters argue that these platforms can provide valuable public forecasting tools, while critics believe they raise regulatory and ethical concerns similar to those associated with online gambling.

The case in Spain reflects a broader debate across Europe and other regions about how digital prediction platforms should be regulated as they expand into international markets.