Brazilian authorities have moved to shut down 27 prediction market platforms, including Kalshi and Polymarket. The action, announced Friday, follows a directive from the Finance Ministry and enforcement by Anatel, Brazil’s telecom regulator, which contends that these services operate outside the country’s current legal framework.
Finance Ministry executive secretary Dario Durigan described the moment as a turning point for the sector, telling reporters at the Palácio do Planalto that Brazil previously experienced “a period of anarchy because there were no rules, no oversight, from 2018 to 2022.”
The crackdown aligns with a new rule framework issued by the National Monetary Council (CMN). Resolution 5.298, issued on Friday, takes effect in early May and narrows the scope of permissible prediction-market contracts. Under the CMN’s plan, contracts tied to sports, politics, entertainment, or social events are banned, as authorities deem them closer to gambling than to financial investments. Only contracts linked to economic indicators—such as inflation, interest rates, exchange rates, or commodity prices—will remain allowed and fall under financial-market oversight.
The block list spans both international operators and Brazil-focused platforms. Among the best-known affected names are Kalshi, Polymarket, PredictIt, and Robinhood’s forecasting feature, along with Fanatics Markets. The crackdown also targets ProphetX, Hedgehog Markets, Novig, Polyswipe, PRED Exchange and Stride, as well as several Brazil-centric services such as Palpita, Cravei, Previsao and MercadoPred.
Related: Kalshi bans 3 US politicians for betting on their own election races
Brazil flags prediction platforms as debt risk
Durigan argued that prediction markets could deepen household debt and expose users to financial harm. “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,” he said.
The government’s stance frames these markets as potential vectors of financial risk at a moment when Brazil seeks to curb indebtedness across households and enterprises. The Ministry and Anatel emphasized that only markets tied to tangible economic indicators will remain within the legitimate financial-market framework.
Global trend and what to watch next
The Brazilian move fits a broader, ongoing pattern as several jurisdictions move to restrict or ban prediction markets, often by folding them into gambling or broader financial-regulatory regimes. In Europe, countries such as France, Belgium and the Netherlands have restricted or penalized operators operating without authorization. The United States presents a more fragmented picture, with ongoing friction between federal authorities and individual states over how to regulate or limit prediction-market activity.
Earlier coverage noted that Kalshi has also taken steps to limit betting on political events in other markets, underscoring the regulatory sensitivity surrounding this sector.
As the CMN rule takes effect and enforcement continues in Brazil, investors and users should watch whether other markets in the region follow suit and how platforms adapt—whether by narrowing offerings, seeking licenses, or exiting certain jurisdictions altogether.
The shift signals a clarifying moment for the intersection of prediction markets and financial regulation. While the technology and its potential for price discovery persist, the path to legitimate, supervised use remains tightly tethered to national frameworks and consumer-protection considerations. Watch how Brazil’s enforcement actions influence platform strategies, local participation, and the broader adoption of regulated forecasting markets in Latin America.
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