Brazil blocks Polymarket and Kalshi over investor risks
Brazil blocked access to prediction markets Polymarket and Kalshi, citing breaches of betting rules and a lack of regulatory oversight to protect investors’ savings.
On Thursday, Brazil’s Finance Ministry ordered internet providers to block access to the prediction market platforms Polymarket and Kalshi, saying the services breached betting rules set by Congress and lacked oversight to protect users.
Finance Minister Dario Durigan told reporters the platforms are not legal or regulated in Brazil and that restricting access is aimed at protecting citizens’ savings as the government pursues public debt reduction. He added, ‘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.’
The Central Bank of Brazil issued a resolution barring derivatives contracts tied to sports events, virtual gaming, political outcomes and other non-economic benchmarks. Regulators pointed to risks for investor protection and market integrity as the basis for the prohibition.
Chief of Staff Miriam Belchior described the measure as intended to ‘protect income, prevent financial losses, and reduce families’ exposure to unsafe practices.’
By Friday afternoon, users in Brazil reported that both Polymarket and Kalshi were inaccessible. The ministry’s action blocks platforms that let traders buy and sell contracts based on the outcomes of events ranging from sports matches to elections.
Prediction markets allow participants to purchase contracts that pay out if a specified event occurs. Prices typically reflect participants’ collective view of the probability that an event will happen. Brazilian authorities have treated such contracts as falling under local betting regulations rather than as regulated financial instruments.
Regulatory pressure on prediction markets has increased in other jurisdictions. Portugal restricted access to one platform earlier this year, and several U.S. states have taken action. In a recent legal step, Wisconsin filed lawsuits naming Kalshi and several other firms, alleging some sports-event contracts violate the state’s commercial gambling ban.
The Finance Ministry did not provide details on how platforms could seek authorization to operate legally in Brazil or whether affected firms plan to challenge the restrictions in court. The central bank and the ministry described the actions as part of broader efforts to shield consumers from unregulated financial products that can generate rapid losses.
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