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

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REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tabMADRID, May 26 (Reuters) - Spain's Consumer Rights Ministry temporarily banned so-called prediction markets Polymarket and Kalshi ​for operating in the country without a ‌gambling licence, the official state gazette showed on Tuesday. Sign up here.In a statement, the ministry said its gambling ​watchdog had opened a probe into the ​U.S.-based companies for allegedly breaching local rules ⁠by lacking mandatory administrative authorisation.The ban ​will last an estimated three or four months ​until the probe's completion, it said.Prediction market users buy and sell stakes on the outcome of future ​events, with prices reflecting the probability of ​one outcome or another occurring.Spain - like other European jurisdictions - considers ‌prediction ⁠markets a form of gambling when bets are placed on uncertain outcomes.The ministry said unauthorised operators lack the required technical and ​regulatory safeguards like ​identity verification ⁠systems, access control mechanisms for minors and for people who have ​self-excluded or are banned from gambling, ​as ⁠well as the standards needed to protect users.Once a niche corner of the internet, prediction ⁠markets ​have mushroomed into a ​multi-billion-dollar industry after gaining a foothold in U.S. politics in ​2024.Reporting by David Latona; Editing by Thomas DerpinghausOur Standards: The Thomson Reuters Trust Principles., opens new tabSuggested Topics:Boards, Policy & RegulationRegulatory OversightXFacebookLinkedinEmailLinkPurchase Licensing RightsRead Next agoAustralia needs to ease complex rules to boost capital flows, says outgoing regulatory chief agoWorld at WorkcategoryPortugal must reform labour rules to fuel growth, PM says agoBusinesscategoryUS Supreme Court won't hear Meta's challenge to Vermont social media addiction lawsuit agoBusinesscategoryExclusive: Starlink and Amazon may be able to buy into EU mobile satellite spectrum plan agoWorldcategoryExclusive: Wall Street banks push Fed to future-proof supervision overhaulBusinessIndia's Zee Entertainment in talks to stream FIFA World Cup in Indiacategory · May 26, 2026 · 2:40 PM UTC · agoIndia's Zee ​Entertainment ‌is in ​talks ​with the Fédération ⁠Internationale ​de ​Football Association (FIFA) to ​stream ​the 2026 World ‌Cup ⁠in the country, ​the ​company ⁠said ​on ​Tuesday.WorldcategoryMicron joins $1 trillion club as AI race powers memory chip boom2:40 PM UTCAutos & TransportationcategoryCritics give Ferrari Luce EV a cool response, shares fall2:38 PM UTCEnergycategoryIndian renewable power firm Clean Max raises about $575 million2:37 PM UTCBusinesscategoryUS consumer confidence ebbs in May as inflation worries mount2:24 PM UTCSite IndexLatestHomeAuthorsTopic SitemapArchiveArticle SitemapMediaVideosPicturesGraphicsPodcastsLatestHomeAuthorsTopic SitemapArchiveArticle SitemapBrowseWorldBusinessMarketsSustainabilityLegalBreakingviewsTechnologyInvestigationsSportsScienceLifestyleMediaVideosPicturesGraphicsPodcastsAbout ReutersAbout Reuters, opens new tabMedia Center, opens new tabAdvertise with Us, opens new tabCareers, opens new tabReuters News Agency, opens new tabBrand Attribution Guidelines, opens new tabReuters and AI, opens new tabReuters Leadership, opens new tabReuters Fact CheckReuters Diversity Report, opens new tabCommercial Disclosure (Japan), opens new tabStay InformedDownload the App (iOS), opens new tabDownload the App (Android), opens new tabNewslettersSubscribeInformation you can trustReuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. 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Spain’s Consumer Rights Ministry has temporarily prohibited the operation of prediction markets such as Polymarket and Kalshi within the country because these platforms lack the necessary gambling licenses. The Ministry announced that its gambling watchdog initiated an investigation into these U.S.-based companies for allegedly violating local regulations by operating without mandatory administrative authorization. This ban is set to remain in effect for an estimated three to four months, pending the conclusion of the ongoing probe.

The rationale behind the regulatory action stems from Spain's legal classification of prediction markets as a form of gambling when wagers are placed on uncertain outcomes. The Ministry stated that unauthorized operators fail to implement essential technical and regulatory safeguards required for legitimate operations. These required safeguards include identity verification systems, access control mechanisms designed to protect minors, appropriate access restrictions for individuals who are self-excluded or banned from gambling, and overall standards necessary to protect all users.

Prediction markets operate by allowing users to buy and sell stakes based on the anticipated outcomes of future events, with the prices reflecting the perceived probability associated with each potential outcome. The restriction on these markets addresses the perceived risks associated with allowing such activities without established regulatory oversight. The text notes that prediction markets have transitioned from a niche online area into a multi-billion dollar industry, partly fueled by their increased engagement within the U.S. political landscape in 2024. This expansion underscores the necessity for formal regulatory structures to manage the financial and legal aspects of these speculative markets. The temporary ban serves as a measure to ensure that operators adhere to local legal and consumer protection standards before these markets can operate legitimately in Spain.