Brazil Moves to Block Prediction Market Platforms
Posted on: April 27, 2026, 02:38h.
Last updated on: April 27, 2026, 02:38h.
- Brazilian government argues that prediction markets too closely resemble betting, and are competing with the regulated igaming market
- Brazil’s regulated online igaming market launched Jan. 1, 2025
- Market generated $7 billion in gross gaming revenue in its first year of operations
The Brazil government has moved to block prediction market platforms in the country, tightening derivatives rules to curb what Finance Minister Dario Durigan called “bet-like” products competing with the regulated igaming market.
Polymarket and Kalshi Shut Down
According to Reuters, prominent prediction market platforms like Polymarket, Fanatics Markets and Kalshi were offline by Friday afternoon. They were shut down in the country by telecoms regulator Anatel. That move came after a directive from the Finance Ministry, which shut down 27 platforms in total.
The government determined that prediction markets operate outside the country’s legal framework and were illegal. The finance minister said the National Monetary Council tightened the wording around what underlying assets can be used in derivatives trading. Contracts linked to sports events, politics, electoral, cultural and social outcomes are now banned.
The council only allows derivative contracts tied to economic indicators, carried out by an authorized firm complying with the law. Those derivative contracts include interest rates, inflation, exchange rates, and commodity prices.
Unregulated Betting Market
In the end, the Brazilian government determined that prediction markets were attempting to position themselves as financial products selling derivatives. In fact, though, those platforms more closely resemble gambling.
A government spokesperson said on Reuters that with the move the government was aiming to avoid the creation of a new, unregulated betting market that was competing with regulated operators.
“At a time when we are working to reduce debt levels among families, small businesses, and students, we must also prevent new forms of harmful indebtedness,” said Durigan in a news conference Friday.
The regulated online betting market launched in Brazil on Jan. 1, 2025, awarding licenses to a handful of operators.
One of the World’s Largest Markets
Brazil has the largest economy in Latin America and is Top 10 in terms of the largest economies in the world.
The regulated Brazilian igaming market closed its first year generating approximately $7 billion in gross gaming revenue from licensed operators. That makes it one of the world’s largest igaming markets.
In the U.S., there are currently legal battles across the country between federal regulators and individual states over access to prediction markets. Companies like Polymarket have been generating billions of dollars in trading volume in the U.S.
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