Brazil issues blanket ban on prediction market platforms

Brazil’s Finance Ministry blocked access to prediction market platforms on Thursday, targeting major platforms like Polymarket and Kalshi that traders use to bet on outcomes.

Finance Minister Dario Dorrigan said the platforms violated betting regulations approved by the Brazilian Congress, and that prediction markets were not legal or regulated in the country. He added that withholding it would protect citizens’ savings amid the government’s efforts to reduce debt levels.

“We have called for stricter enforcement and very strict 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,” Dorrigan said.

Reuters It was reported that both Polymarket and Kalshi were inaccessible in the country as of Friday afternoon.

Brazilian Central Bank He issued a decision Prohibiting financial derivative contracts based on sporting events, virtual games, political results, and other non-economic criteria. The central bank pointed out the risks that threaten investor protection and market safety.

Chief of Staff Myriam Belchior said the measure aims to “protect income, prevent financial losses and reduce families’ exposure to unsafe practices.”

The Brazilian campaign reflects increasing global pressure on prediction markets. Portugal Restrict access to Polymarket In January, while several US states took measures. The latest is Wisconsin Lawsuits filed Against Kalshi, Robinhood, Coinbase, Polymarket, crypto.com on Friday, claiming their sporting event contracts violate the state’s commercial gambling ban.