Spain blocks Polymarket and Kalshi, opens probe over missing authorisation
Spanish internet users trying to reach Polymarket or Kalshi on Tuesday found the doors effectively shut, after authorities moved to cut off access while examining whether the U.S.-based prediction platforms were operating without the required gambling licence.[1] The action raises an immediate question for bettors and the companies alike: whether the outage is a short-lived compliance measure or the start of a longer exclusion from the Spanish market.
Spain’s Consumer Rights Ministry said it had initiated disciplinary proceedings against both services amid allegations they lacked the “necessary administrative authorisation” to operate in the country, where gambling activity is typically tied to licensing and oversight.[2] The platforms, which allow wagers on events ranging from politics to the weather, are now the subject of a probe into suspected breaches of local rules, the ministry said.[1]
The move places Spain in a widening circle of jurisdictions testing where prediction markets end and unlicensed gambling begins. The latest clampdown follows a U.S. legal fight that began on March 29, 2025, when Kalshi sued Nevada and New Jersey gaming regulators over cease orders, and intensified on March 26, 2026, when a judge temporarily barred Kalshi from operating in Nevada.
Spanish officials have not said how long the block will last or whether penalties will follow if regulators conclude the companies were serving customers without authorisation.[1]
Timeline· Developing
The legal conflict over regulation and jurisdiction of prediction markets involving Kalshi, state authorities, and federal government agencies has escalated, with a judge temporarily barring Kalshi from operating in Nevada and Nevada suing Kalshi after the company lost its bid to stop state action; meanwhile, Kalshi introduced new tools to prevent minors from trading, confirmed a $1 billion funding raise at a $22 billion valuation amid a booming prediction market industry, blocked a Special Forces Sgt. involved in the Polymarket Maduro raid bet case from trading on its platform, most recently fined and suspended a MrBeast employee for insider trading, faces a congressional probe launched by Rep. James Comer into insider trading on Kalshi and Polymarket, debuted the 'Fair Markets' lobby group in response to ongoing regulatory scrutiny, and has now been banned in Spain alongside Polymarket for lacking gambling licenses.
Federal administration voices support for prediction markets
Reports emerged that the Trump administration backed Kalshi and competitor Polymarket as several states moved to restrict or ban prediction markets, framing the issue as a national policy dispute. This signaled potential federal interest in the regulatory battles unfolding at the state level.
Nevada files suit seeking to block Kalshi market
Nevada's regulators sued Kalshi, alleging the company's sports-related prediction contracts amounted to unlicensed sports gambling and asking courts to block the market. The filing launched formal legal action challenging Kalshi's operations in the state.
Judge temporarily bars Kalshi from operating in Nevada
A court issued a temporary order preventing Kalshi from operating in Nevada while the state's legal challenge proceeded, effectively blocking the company's prediction market access to Nevada customers. The injunction marked an immediate operational impact from the lawsuit.
Kalshi sues Nevada and New Jersey regulators
In response to cease-and-desist orders and the Nevada action, Kalshi filed suit against Nevada and New Jersey gaming regulators, challenging their attempts to shut down its markets. The countersuit escalated the dispute into reciprocal litigation between the company and state authorities.
Court battle with Nevada Gaming Control Board continued
The legal fight continued as Kalshi and the Nevada Gaming Control Board engaged in ongoing court proceedings following the temporary block, with both sides litigating regulatory authority and the classification of prediction contracts. The continuing dispute kept Kalshi's Nevada operations in limbo.
Kalshi raises $1B and rolls out product and safety changes
Amid the regulatory battles, Kalshi confirmed a $1 billion funding round at a $22 billion valuation and announced product moves — including crypto deposit options and new tools to block minors — demonstrating financial backing and operational adjustments while litigation proceeded. The developments showed the company was pursuing growth and risk controls despite state bans.
Sources (2)
Published May 26, 2026
Synthesized from 2 sources