On Thursday, Brazil’s Finance Ministry announced a nationwide blockade against prediction market platforms such as Polymarket and Kalshi, where users place wagers on various outcomes. According to Finance Minister Dario Durigan, these platforms contravene betting laws enacted by the Brazilian Congress, rendering them illegal due to lack of regulation within the country. The minister emphasized that this action would safeguard citizens’ funds amid governmental strategies aimed at debt reduction.
Durigan stated, “We have supported stricter enforcement and very rigorous regulation, which will continue to progress, so that we can mitigate the adverse effects and social damage caused by unregulated gambling on the Brazilian populace.”
As reported by Reuters, both Polymarket and Kalshi were rendered inaccessible in Brazil by Friday afternoon.
The Banco Central do Brasil issued a resolution banning derivatives contracts related to sports events, virtual gaming, political outcomes, and other non-economic indicators, citing threats to investor protections and market integrity.
Chief of Staff Miriam Belchior commented that the initiative seeks to “safeguard income, prevent financial losses, and minimize families’ engagement in hazardous activities.”
This action is part of a broader international trend against prediction markets; Portugal had previously restricted Polymarket access in January. In the United States, several states have intervened, with Wisconsin recently filing lawsuits against Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com on Friday, claiming their sports contracts breach the state’s prohibition on commercial gambling.