Spain blocks Polymarket and Kalshi for unlicensed gambling operations
Spain's Directorate General for the Regulation of Gambling blocked Polymarket and Kalshi on May 26 after determining neither platform holds a Spanish gambling license. The temporary nationwide ban, ordered by the Consumer Affairs ministry to internet service providers, applies to both the crypto-native Polymarket and CFTC-regulated Kalshi while the licensing investigation proceeds. The DGOJ gave no resolution timeline. The action surfaced via regulatory filings and LinkedIn posts from industry observers. It follows a pattern where prediction market platforms gain traction before local gambling authorities force restrictions. Eurasia Group separately reported Wednesday that 34 countries and territories have now banned Polymarket.
Polymarket must now defend against active government blocking in five major markets — adding Spain to Indonesia, India, Brazil, and South Korea — while any consistent foreign enforcement template treating its CFTC-regulated contracts as gambling directly undermines its argument that U.S. federal oversight insulates it from overseas shutdowns.