Spain blocks Polymarket and Kalshi as it investigates prediction market platforms - Engadget

Spain blocked access to Polymarket and Kalshi as a precaution while legality is investigated under gambling rules. The consumer affairs ministry stated the websites were blocked pending an official inquiry that will determine whether the platforms violate Spain’s gambling laws. The investigation is expected to conclude within four months and could require the companies to obtain specific administrative licenses to operate. In the United States, multiple states have moved to regulate or ban prediction markets, with Minnesota becoming the first to ban them by making operation or advertising a felony. Other states have challenged prediction markets’ legality. The federal Commodity Futures Trading Commission has begun suing states, asserting sole jurisdiction over regulation. Concerns have also been raised about suspicious activity and potential insider trading.

"The Spanish government has issued an order to block the gambling platforms Polymarket and Kalshi, according to a report by The Wall Street Journal. The ban is being instituted as the country investigates the legality of prediction market platforms, as they operate in Spain (and everywhere else) without a gambling license."

"The country's ministry in charge of consumer affairs said it blocked the websites as a precautionary measure pending an official investigation. This investigation will determine if the platforms violate Spain's gambling laws. It's set to complete within the next four months and could mandate that these companies require specific administrative licenses to operate."

"Minnesota has just become the first state to ban prediction markets. Gov. Tim Walz has signed a bill that makes operating or advertising prediction markets a felony. This sets a major precedent for those seeking to regulate or ban Polymarket, Kalshi, and other sites."

"However, the federal government isn't having any of it. The US Commodity Futures Trading Commission (CFTC) has started suing states for attempting to ban or regulate prediction markets. The CFTC believes it has sole jurisdiction to regulate these platforms, and not the states."

Read at Engadget