Brazil has imposed a ban on prediction markets linked to sports, politics, culture, and entertainment, affecting platforms like Kalshi and Polymarket. The ban, effective May 4, follows the National Monetary Council's Resolution No. 5,298, which aims to protect investors and maintain market integrity by classifying these platforms as fixed-odds betting. Finance Minister Dario Durigan emphasized that these platforms cannot circumvent existing gambling regulations.
The resolution prohibits derivatives tied to non-financial events, such as sports and political outcomes, while allowing those linked to financial benchmarks. Brazil's move aligns with similar restrictions in Argentina and Colombia, reflecting a broader global scrutiny of prediction markets. Authorities plan to block access to these platforms and coordinate with financial institutions to halt their operations.
Brazil Bans Prediction Markets, Blocks Kalshi and Polymarket
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