Spain's Official State Gazette announced on Tuesday that the country's Department of Consumer Affairs has provisionally blocked the foreign prediction trading platforms Polymarket and Kalshi. The action was taken because both platforms operate in Spain without holding a gambling operating license.

In a statement, the Department of Consumer Affairs indicated that its gambling regulatory body has initiated an investigation into these two US-based companies. It has determined that they lack the required legal operating permits and are suspected of violating local regulations.

The block is expected to remain in effect for three to four months until the investigation concludes.

Users of prediction trading platforms can buy and sell contracts based on the outcomes of various future events. The trading prices reflect the perceived probability of different outcomes occurring.

Aligning with regulatory stances in other parts of Europe, Spain classifies these prediction trading platforms, which involve wagering on uncertain outcomes, as part of the gambling industry.

The department noted that platforms operating without a license lack several mandatory technical and regulatory safeguards. These include identity verification systems, access restrictions for minors and individuals who have voluntarily self-excluded from gambling, as well as standards related to user rights protection.

Prediction trading originated as a niche area on the internet. Since entering the US political trading arena in 2024, the sector has expanded rapidly and has now grown into an industry worth billions of dollars.