Spain blocks Polymarket and Kalshi over missing gambling licence

Spanish authorities have blocked access to Polymarket and Kalshi for operating without a gambling licence, citing violations of national gambling laws [Reuters]. The move follows enforcement actions in other EU countries, including Germany and the Netherlands, where unlicensed crypto platforms have been restricted.

The Spanish Directorate General for Gambling Regulation (DGOJ) confirmed the blocks apply to all internet service providers in the country, requiring them to prevent user access. Polymarket and Kalshi had not applied for or obtained Spain’s mandatory gambling authorisation, which requires platforms to comply with anti-money laundering rules, consumer protections, and licensing fees.

Polymarket, which runs on blockchain and uses stablecoins for trading, has not commented publicly. Kalshi, a U.S.-based platform with regulatory approval from the CFTC, does not hold EU licences and has not announced plans to seek them. Neither platform had a significant user base in Spain, but the blocks reflect a wider EU trend: regulators are treating crypto prediction markets as gambling, not financial instruments.

This enforcement action matters because it shows EU regulators are willing to act unilaterally when platforms fail to comply with local licensing rules. Spain’s move could encourage similar actions in Italy or Belgium, where regulators have previously warned unlicensed operators. It also increases pressure on crypto-based platforms to either exit EU markets or pursue costly, fragmented national licences.

The idea that prediction markets foster innovation does not override legal compliance in jurisdictions with strict gambling laws. Platforms choosing to operate without authorisation are not pioneers—they’re violators.