Spain has blocked access to prediction market platforms Polymarket and Kalshi as it investigates potential violations of gambling regulations. The disciplinary order from the Directorate General for Gambling Regulation (DGOJ) was issued because regulators could not contact the firms at their foreign addresses. The platforms are expected to remain blocked for three to four months during proceedings. The Ministry of Consumer Affairs stated that in Spain, prediction markets are considered gambling when bets are placed on uncertain future outcomes, requiring a specific administrative license. Spain joins a growing list of countries, including Indonesia, Thailand, and India, that have blocked or banned such platforms. Regulators highlighted that without proper authorization, the firms lack identity verification, age controls, and user protection standards. Despite regulatory challenges, Polymarket and Kalshi have seen surging popularity, with monthly trading volumes exceeding $5 billion and $13.7 billion respectively in May. Both are seeking multibillion-dollar valuations. Meanwhile, scrutiny also continues in the United States amid insider trading allegations, including a case where a U.S. soldier placed bets using confidential information.

Key facts

• Spain blocked Polymarket and Kalshi over potential gambling law violations.
• Platforms blocked for 3-4 months during disciplinary proceedings.
• Spain joins Indonesia, Thailand, India in cracking down on prediction markets.
• Polymarket and Kalshi saw over $5B and $13.7B monthly volume in May.
• US also investigating insider trading, including a soldier's $400K bet.