Spain's gambling regulator, the Directorate General for the Regulation of Gambling (DGOJ), has opened disciplinary proceedings against Polymarket and Kalshi, ordering internet service providers to block both platforms. The action, taken on May 26, stems from the lack of local licensing for betting products.
The DGOJ flagged the platforms for failing to implement identity verification, age safeguards, or protections for self-excluded gamblers. The ISP blocks are a precautionary measure expected to last three to four months.
Polymarket and Kalshi together handled nearly $9.7 billion in trading volume over the past 30 days, representing roughly 88% of the global prediction market sector. Kalshi accounted for $5.9 billion, Polymarket $3.8 billion.
Spain joins Brazil, Argentina, and Ukraine in restricting access to these platforms over licensing issues. Kalshi is regulated in the U.S. by the Commodity Futures Trading Commission, but that does not confer legal status abroad.
For traders in Spain, access is cut for at least three months. The broader regulatory trend threatens the liquidity that these markets depend on.