Brazil Blocks Polymarket and Kalshi in Broad Prediction Market Ban Over Investor Protection Concerns

The government of Brazil has introduced a sweeping ban on prediction markets and betting platforms, restricting access to major services such as Polymarket and Kalshi. The move was formalized through a resolution issued by the Banco Central do Brasil, which cited risks related to investor protection and market integrity.

Authorities stated that derivative contracts linked to events such as sports competitions, political outcomes, or entertainment activities are prohibited when they do not reflect recognized financial or economic benchmarks. Officials emphasized that these restrictions are intended to reduce speculative exposure among retail participants.

Government Cites Gambling Risks and Expanding Platform Restrictions

Dario Durigan confirmed that approximately 28 betting and prediction platforms were banned under the new measures. He described the policy as part of a wider initiative to protect household savings amid growing concerns about online gambling activity across the country.

Polymarket has already faced restrictions in more than 30 jurisdictions worldwide, including actions taken by Portugal, France, Belgium, Australia, United Kingdom, Italy, Poland, and Singapore, reflecting increasing global scrutiny of event-based trading markets.

Legal Pressure Builds Globally on Prediction Market Industry

In the United States, prediction markets have also faced legal challenges despite earlier regulatory wins. Commodity Futures Trading Commission previously lost a case that allowed Kalshi to offer election-related contracts in 2024, helping revive interest in the sector.

More recently, the U.S. state of Wisconsin filed a lawsuit against companies including Robinhood, Coinbase, Crypto.com, Kalshi, and Polymarket. The lawsuit alleges that sports-based contracts offered through these services may violate state gambling laws, highlighting continued regulatory pressure on the emerging prediction market sector.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.