Brazil Shuts Down 27 Prediction Market Platforms Including Kalshi and Polymarket

[AIcash]

Brazilian authorities have moved to block 27 prediction market platforms operating in the country, following a directive from the Ministry of Finance and enforcement action by the National Telecommunications Agency. The crackdown, announced Friday, targets major international platforms including Kalshi, Polymarket, PredictIt, Robinhood's forecasting feature, and Fanatics Markets, alongside a range of Brazil-focused services. Authorities stated that these platforms fall outside Brazil's current legal framework and have therefore been operating illegally. Finance Ministry executive secretary Dario Durigan described the period from 2018 to 2022 as one of "anarchy" in the sector, during which platforms operated with no rules and no oversight.

The legal foundation for the shutdown is Resolution 5.298, issued by Brazil's National Monetary Council on Friday and taking effect in early May. Under the new rules, contracts tied to sports, politics, entertainment, or social events are banned outright, as authorities classify them as closer to gambling than legitimate financial activity. Only contracts linked to economic indicators — such as inflation rates, interest rates, exchange rates, or commodity prices — will be permitted and regulated under the financial market framework. Durigan also framed the ban as a consumer protection measure, arguing that prediction markets risk deepening household debt at a time when Brazil is actively working to reduce financial burdens on families, small businesses, and students.

[kevin1]

prediction markets: we are financial instruments. Brazil: you are gambling and you are deepening household debt. prediction markets: