Spain blocks prediction markets Polymarket, Kalshi over lack of gambling licences

Reuters

Tue, May 26, 2026 astatine 3:03 AM CDT 1 min read

MADRID, May 26 (Reuters) - Spain's Consumer Rights Ministry temporarily banned alleged prediction markets Polymarket ‌and Kalshi for operating successful the state ‌without a gambling licence, the authoritative authorities gazette showed connected ​Tuesday.

• In a statement, the ministry said its gambling watchdog had opened a probe into the U.S.-based companies for allegedly breaching section rules by lacking ‌mandatory administrative authorisation.

• ⁠The prohibition volition past an estimated 3 oregon 4 months until the probe's ⁠completion, it said.

• Prediction marketplace users bargain and merchantability stakes connected the result of aboriginal events, ​with prices ​reflecting the probability ​of 1 result oregon ‌another occurring.

• Spain - similar different European jurisdictions - considers prediction markets a signifier of gambling erstwhile bets are placed connected uncertain outcomes.

• The ministry said unauthorised operators deficiency the required method and regulatory ‌safeguards similar individuality verification systems, ​access power mechanisms for minors ​and for radical ​who person self-excluded oregon are banned ‌from gambling, arsenic good ​as the standards ​needed to support users.

• Once a niche country of the internet, prediction markets person ​mushroomed into a ‌multi-billion-dollar manufacture aft gaining a foothold successful ​U.S. authorities successful 2024.

(Reporting by David Latona; ​Editing by Thomas Derpinghaus)