Spain’s gambling regulator blocked local users from Polymarket and Kalshi “as a precautionary measure” as authorities there address allegations the prediction markets platforms were in violation of gambling laws.
On Tuesday, Spain’s Directorate General for the Regulation of Gambling (DGOJ) said the country’s Ministry of Social Rights, Consumption, and Agenda 2030 had opened legal proceedings against the two companies, as they appeared to be operating without necessary licensing. The DGOJ issued an order blocking Spanish users from Kalshi and Polymarket until the proceedings were resolved, expected in three to four months.
“The DGOJ wishes to remind the public that, in Spain — in line with other European jurisdictions — prediction markets are deemed to constitute games of chance when bets are placed on uncertain future outcomes,” according to a Tuesday notice. “Consequently, operating such markets within Spanish territory requires obtaining a specific administrative license.”
Source: Spain’s Ministry of Social Rights, Consumer Affairs, and Agenda 2030
The move by Spanish authorities follows a similar governmental ban in Indonesia, which blocked access to Polymarket on Friday after the platform listed bets on whether President Prabowo Subianto would leave office before the end of his term. Other countries, including Australia, France, Poland, Singapore, Ukraine and Switzerland, have restricted access to Polymarket over gambling concerns, with the platforms also facing US state-level crackdowns and restrictions.
Related: Kalshi valuation doubles to $22B after $1B funding round
A spokesperson for Polymarket told Cointelegraph that the platform was “committed to engaging constructively with relevant authorities in every jurisdiction.” A Kalshi spokesperson declined to comment.
Kalshi and Polymarket are two of the largest prediction markets platforms by trading volume, with combined in weekly notational volume $6.1 billion, according to DeFi Rate.
NYT report shines light on US federal response to prediction markets
On Sunday, the New York Times reported that officials at the Commodity Futures Trading Commission (CFTC) were pushed out of the agency after they voiced concerns about prediction markets like Kalshi and Polymarket.
The financial regulator, under US President Donald Trump’s hand-picked chair, Michael Selig, has taken the stance that the CFTC has “exclusive authority” over the platforms, filing lawsuits against any state authority that challenged this position.
Prediction Market Volume: Kalshi & Polymarket Aggregated Data. Source: DeFi Rate
Lawmakers on the US House of Representatives’ Oversight and Government Reform Committee announced on Friday that they had initiated a probe into Kalshi and Polymarket over insider trading concerns. Committee Chair James Comer cited reports of “suspiciously timed trades” on the platforms ahead of US military actions against Iran, allowing certain users to potentially profit from insider information.
Magazine: 50K investors fight Korean crypto tax, Singapore cancels Bsquared: Asia Express
-1024x683.jpg "Florida Roads Become a Battleground for Illegal Immigration")
-1024x683.jpg "Feds Release Details on Planned UFC 250 Attack")
