Brazil's Finance Ministry moved to block access to prediction market platforms on Thursday, targeting major services including Polymarket and Kalshi that allow traders to wager on the outcomes of various events.
Finance Minister Dario Durigan stated that the platforms violated betting regulations approved by the Brazilian Congress, and that prediction markets were neither legal nor properly regulated within the country. He added that blocking the platforms would help protect citizens' savings as the government works to reduce national debt levels.
"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," Durigan said.
According to reports, both Polymarket and Kalshi were inaccessible in Brazil as of Friday afternoon.
Brazil's central bank, Banco Central do Brasil, issued a resolution prohibiting derivatives contracts based on sports events, virtual gaming, political outcomes, and other non-economic benchmarks. The central bank cited risks to investor protections and market integrity as key reasons for the measure.
Chief of Staff Miriam Belchior said the action aims to "protect income, prevent financial losses, and reduce families' exposure to unsafe practices."
The Brazilian crackdown reflects mounting global pressure on prediction market platforms. Portugal restricted access to Polymarket in January, while multiple U.S. states have also taken action against such services. Most recently, Wisconsin filed lawsuits on Friday against Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com, alleging that their sports event contracts violate the state's commercial gambling ban.
Fast facts
Action takenAccess blocked to prediction market platformsPlatforms targetedPolymarket, KalshiBrazilian authorityFinance Ministry; Banco Central do BrasilLegal basis citedBetting regulations approved by Brazilian Congress; central bank resolution on derivatives contractsContracts prohibitedDerivatives based on sports events, virtual gaming, political outcomes, and other non-economic benchmarksOther jurisdictions actingPortugal (January restriction on Polymarket); Wisconsin (lawsuits filed Friday against Kalshi, Robinhood, Coinbase, Polymarket, Crypto.com)
Why it matters
Brazil's central bank resolution targets a specific contract type — derivatives tied to non-economic benchmarks — which could set a template for how other regulators frame legal challenges to prediction markets beyond simple gambling law.
The Wisconsin lawsuits filed on the same day name five separate platforms, suggesting U.S. state-level enforcement is broadening in scope rather than focusing on individual operators.
Platforms operating across multiple jurisdictions now face simultaneous regulatory actions in South America, Europe, and the United States within the same week.
