Brazil blocks prediction markets in illegal betting crackdown
Brazil has blocked access to prediction market sites, including Polymarket and Kalshi, as part of a wider crackdown on unlicensed gambling.
In total, Brazilian authorities have blocked 27 sites found to be offering bets on sports, political, social, cultural, and entertainment events without authorization under federal gambling laws, including several prediction market sites. Although these sites claim to be futures trading exchanges, rather than betting sites, the bulk of their markets are based on sports, entertainment, and politics.
The measures follow a new regulation that bans derivatives tied to event outcomes, including those commonly used in prediction markets, although it does allow contracts relating to economics and finances to be traded, at the discretion of Brazil’s securities regulator, the Comissao de Valores Mobiliarios (CVM).
Speaking about the crackdown, the Finance Minister, Dario Durigan, was clear about the legal view on prediction markets, saying, “The prediction market violates the law passed by the National Congress. Therefore, the product offered by these platforms cannot be regulated.”
Minister Durigan also emphasized the government’s concern about financial risk and rising household debt linked to online betting activity.
Brazil’s approach follows similar restrictions introduced in countries such as France and Portugal, where authorities have taken action against prediction markets over concerns related to unlicensed gambling operations and the potential for insider trading.
