The Brazilian government has issued a ban on prediction market platforms in the country as it looks to clamp down on “bet-like” products.
Finance minister Dario Durigan confirmed 27 different platforms were due to be shut down in Brazil as part of a wider overhaul of regulations pertaining to derivatives markets.
Anatel, the country’s telecommunications agency, commenced the shutdowns on Friday, 24 April. The body has closed around 39,000 illegal operator sites since regulation on 1 January 2025.
Among the banned platforms is Kalshi, which first entered the Brazilian market last month via a partnership with XP International.
The firm, co-founded by Brazilian Luana Lopes Lara who also serves as COO, initially planned to offer only financial markets in the Latam country.
The deal marked Kalshi’s first collaboration with a financial institution based outside of the US, and was met with staunch opposition by Brazil’s gambling trade body the Instituto Brasileiro de Jogo Responsável (IBJR).
Other notable prediction market sites blocked in Brazil include Polymarket, Robinhood, Fanatics Markets and Novig.
Brazil’s National Monetary Council last week banned any derivatives trading related to sporting events and online gaming, in addition to any political, cultural, electoral or social markets.
The government will continue to allow trading on derivative contracts related to pre-defined economic and financial markets, but this will only be permitted to licensed firms that have demonstrated compliance with regulations.
A resolution published by the Central Bank of Brazil and signed by its president, Gabriel Muricca Galípolo, outlining the prohibition noted that changes will become law on 4 May.
Durigan said: “We have advocated for stricter enforcement and very rigorous regulation, which will continue to advance, so that we can curb the negative externalities and social harm that unregulated gambling causes to the Brazilian population.”
Presidential chief of staff Miriam Belchoir added: “The measure aims to prevent the consolidation of a new betting market, called the ‘prediction market’, to prevent it from consolidating uncontrollably.
“From our point of view, if this happened, it would pose enormous risks to the Brazilian population.”
Several markets outside of the US, including France, Portugal and Hungary, have worked to block prediction market platforms as they are deemed to overlap too closely with sports betting.
In February, Polymarket was issued with a cease and desist order in the Netherlands for offering “illegal gambling” in the market.
Meanwhile, the fight against prediction markets also continues in the US, with Ohio the latest state to take enforcement action against Kalshi in the form of a $5m fine.
Despite struggles in states such as Nevada and Washington, Kalshi has also enjoyed legal victories in New Jersey and Arizona in recent months.
The company also secured a $22bn valuation after raising $1bn during its latest funding round.
The post Brazilian government issues nationwide ban on prediction markets first appeared on EGR Intel.
Finance minister Dario Durigan confirmed 27 platforms, including the likes of Kalshi and Polymarket, have been shut down in the country
The post Brazilian government issues nationwide ban on prediction markets first appeared on EGR Intel.