Spain blocks Polymarket and Kalshi as it investigates prediction market platforms
Source: Engadget
Spain Blocks Polymarket and Kalshi
The Spanish government has issued an order to block the gambling platforms Polymarket and Kalshi while it investigates the legality of prediction‑market platforms operating in Spain without a gambling licence. The ministry responsible for consumer affairs said the sites were blocked as a precautionary measure pending an official investigation, which is expected to conclude within four months and could require the platforms to obtain specific administrative licences.
US State Actions
Several U.S. states have moved to regulate or ban prediction‑market platforms:
- Minnesota – The first state to ban prediction markets, with a law taking effect on August 1 that makes operating or advertising such markets a felony.
- Rhode Island, Illinois, Arizona, Connecticut, Nevada, New Jersey – These states have challenged the legality of prediction markets.
Federal CFTC Response
The U.S. Commodity Futures Trading Commission (CFTC) has begun suing states that attempt to ban or regulate prediction markets, asserting that it holds sole jurisdiction over these platforms.
Legal and Ethical Concerns
- Insider‑trading allegations – A U.S. soldier was charged with using classified information about the capture of Venezuela’s Nicolás Maduro to win more than $400,000 on prediction‑market platforms.
- Rigging incidents – In France, an individual allegedly used a hairdryer to warm a temperature sensor, placed bets on the resulting temperature spike on Polymarket, and earned $34,000 twice. Météo France filed a complaint, after which Polymarket switched sensors.
These cases illustrate the challenges of applying traditional gambling regulations to markets that bet on real‑world events, many of which lack official oversight.
Platform Valuations
- Kalshi – Recently valued at $22 billion.
- Polymarket – Recently valued at $15 billion.