SHUTDOWN of online platforms where users bet on elections, wars and political scandals comes amid growing fears over illegal gambling and lack of protections for minors
Spain has ordered internet providers to block access to prediction betting platforms Polymarket and Kalshi after accusing them of operating illegally without a gambling licence.
The Ministry of Consumer Affairs confirmed the move this week after disciplinary proceedings against both companies were published in the Official State Gazette (BOE).
Polymarket and Kalshi are online prediction markets where users gamble on future events rather than traditional sports or casino games.
Instead, users can place money on topics ranging from wars and economic crises to elections and whether political leaders will leave office.
For example, Polymarket recently allowed bets on whether Prime Minister Pedro Sanchez would step down early.
Meanwhile, Kalshi users have also been wagering on which world leaders could leave power this year.
Spanish authorities argue the platforms are effectively gambling websites and therefore require an official licence to legally operate in Spain. However, neither company currently holds one.
As a result, the government has instructed telecom providers to block access to both sites within the next seven to 10 days.
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Once the restrictions are in place, users attempting to access the platforms will see a warning message stating they are entering the website of an unlicensed gambling operator.
According to Consumer Affairs, the companies also fail to meet legal safeguards required in Spain.
These include protections designed to stop minors and self-excluded gamblers from accessing betting services.
Officials were reportedly unable to directly contact the companies abroad and instead formally notified them through publication in the BOE.
The investigation and sanctioning process is expected to continue for up to four months.
Although prediction markets exploded in popularity during the 2024 US presidential election cycle, they have also become increasingly controversial.
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In recent months, the sector has faced allegations of insider betting linked to military operations as well as investigations into possible market manipulation tied to weather-related wagers.
Spain is not the only country taking action because Brazil also blocked access to both platforms earlier this year over alleged breaches of gambling laws.
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