Spain bans Polymarket and Kalshi over lack of gambling license By Investing.com

Investing.com -- Spain's Consumer Rights Ministry has temporarily banned U.S.-based prediction markets Polymarket and Kalshi from operating in the country due to the absence of a required gambling license, according to the official state gazette on Tuesday.

The ministry's gambling watchdog opened an investigation into the companies for allegedly violating local regulations by operating without mandatory administrative authorization. The ban is expected to remain in effect for three to four months until the probe is completed.

Prediction markets allow users to buy and sell stakes on the outcomes of future events, with prices reflecting the probability of different outcomes. Spain, like other European jurisdictions, classifies prediction markets as a form of gambling when bets are placed on uncertain outcomes.

The ministry stated that unauthorized operators lack required technical and regulatory safeguards, including identity verification systems, access control mechanisms for minors and individuals who have self-excluded or are banned from gambling, and standards needed to protect users.

Prediction markets have grown from a niche corner of the internet into a multi-billion-dollar industry after gaining traction in U.S. politics in 2024.

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