Spain Temporarily Bans Prediction Markets Over Gambling Licensing Concerns

Spain's Consumer Rights Ministry has issued a temporary ban on the prediction markets Polymarket and Kalshi. The ministry's gambling watchdog initiated a probe into the U.S.-based companies for allegedly operating without the mandatory administrative authorization required by Spanish law. The ban is expected to last for an estimated three to four months, concluding when the probe is completed. Prediction markets allow users to trade stakes on the outcomes of future events, with prices reflecting perceived probabilities. Spain, in line with other European jurisdictions, classifies these markets as a form of gambling when bets are placed on uncertain outcomes.